Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law authorizes the association to formulate and administer the program to, among other things, establish maximum limits of liability to be placed through the program, as specified.

This bill would state the intent of the Legislature to enact legislation to reduce the future liabilities under the California FAIR Plan.