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California FAIR Plan

The California FAIR Plan was established in 1968 by the California legislature to assure stability in the California property insurance market and to provide basic property Insurance. Although the Plan was established by the state, it is not a state agency. It is an association of all property insurers in the state of California. All insurers participate according to the amount of business they write in the state.
The Plan is a statutory insurance industry association that issues property insurance on behalf of insurers that have written property insurance in California. The FAIR Plan issues insurance as a last resort, and should be used only after a diligent effort to obtain coverage in the voluntary market has been made. Generally, the FAIR Plan offers basic property insurance that does not provide coverage for theft or liability to others. Read the policy carefully for the actual coverage’s provided.
The Plan does not have insurance agents. Insurance agents and brokers cannot bind or commit the Plan in any way. All business submitted to the FAIR Plan is on a brokerage basis. No agent or broker can collect any monies for assisting consumers in completing or submitting any applications or forms in conjunction with FAIR Plan business transactions.
The FAIR Plan encourages applicants or policyholders to seek the advice of a licensed insurance agent or broker to secure their insurance. For those who choose to deal directly with the FAIR Plan, they suggest that contact be made with a knowledgeable professional such as a local building contractor or real estate appraiser for assistance in establishing the value or replacement cost of the property to be insured.
The best rating guide gives all insurers that have capital and surplus with either private or public stock ownership a financial rating based on financial factors such as profitability, liquidity, adequacy of reserves, etc. so that the business community can determine a given company's financial strength or weakness. 

Since mortgage lenders are concerned about the financial strength or weakness of any insurer that is providing hazard insurance prior to the issuance of loan monies, the financial rating of a given company is one of the primary means of judging a given insurer's strength or weakness. The FAIR Plan is stronger than any single insurer, since it is backed by the capital and surplus of all companies writing property insurance in the state.

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