Assembly Insurance Committee advances AB 226 to let FAIR Plan seek bonds through I‑Bank

The California State Assembly Insurance Committee on Wednesday voted to send AB 226 to the Appropriations Committee, advancing a bill that would allow the Fair Access to Insurance Requirements (FAIR) Plan to request that the California Infrastructure and Economic Development Bank (I‑Bank) issue bonds when the FAIR Plan faces severe financial strain after catastrophic events.

AB 226, authored in part by Assemblymembers Selma and Alvarez, is intended to give the FAIR Plan an additional financing tool so assessments on insurers — which are passed on to consumers — can be spread over a longer period rather than due immediately after a disaster.

The bill’s supporters told the committee the measure aims to stabilize a public safety‑net insurer and reduce sudden, large assessments that can raise costs for homeowners and owners of condominium units. Dan Dunmoyer, president and CEO of the California Building Industry Association, told the committee: “it’s harder and harder to find insurance in this great state.” He said the industry has faced large assessments and noted, “insurers have been assessed a billion dollars since this horrific fires in Los Angeles,” which he said forced carriers to pay sums they had not collected…