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Committee advances bill to require automatic payments for FAIR Plan; insurer of last resort raises concerns
Summary
The committee passed AB 290 as amended to Appropriations. The bill would require the California FAIR Plan to offer automatic payment and add a grace period for some nonrenewals. The FAIR Plan said the April 1, 2026 implementation date is too aggressive and asked to remove the nonrenewal grace period and extend the timeline.
The Assembly Insurance Committee voted to pass AB 290, sending the measure to the Assembly Appropriations Committee. The bill, authored by Assemblymember Bauer Kahan, would require the California FAIR Plan (the insurer of last resort) to implement automatic payment options for policyholders and would add a grace period provision for certain nonrenewals.
Assemblymember Rebecca Bauer Kahan described her experience being nonrenewed and then relying on the FAIR Plan. She told the committee her premium increased from “under $3,000 a year to $9,000 a year,” and said some…
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