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Assembly committee advances bill allowing FAIR Plan to seek I‑Bank bonds after disasters
Summary
The Assembly Insurance Committee voted to send AB 226 to the Appropriations Committee after testimony that the bill would give the California FAIR Plan an additional borrowing option through the California Infrastructure and Economic Development Bank to spread post‑disaster assessments over time.
The Assembly Insurance Committee voted to send AB 226 to the Appropriations Committee after members and a broad coalition of industry groups and the Department of Insurance said the bill would give the California FAIR Plan an additional tool to manage financial strain following catastrophic events.
AB 226 would authorize the Fair Access to Insurance Requirements plan (the FAIR Plan) to request that the California Infrastructure and Economic Development Bank (I‑Bank) issue bonds, loans or lines of credit—subject to approval by the insurance commissioner—so the FAIR Plan could access capital to help meet claims following a disaster and spread the cost of assessments imposed on insurers over a longer period.
The bill’s author, Assemblymember Alvarez, told the committee the measure is intended to protect consumers and “enhance the financial tools available to the crucial safety net” provided by the FAIR Plan. Andrew Deller, deputy…
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