Task force considers FAIR Plan governance changes and feasibility study

ST. PAUL — The task force debated a proposal to explore changes to the Minnesota FAIR Plan, including adding public members to the board and expanding coverage options for affordable housing and common‑interest communities.

Carrie Johnson said she wants to see “some more public members on the FAIR Plan board” and suggested looking at structural and financial changes the plan might request from the legislature. Several members warned that board composition is set by statute and changing it would require legislative action and attention to how assessments are levied when the FAIR Plan runs a deficit. “I don't think that the FAIR Plan alone could update the board composition … it's set in statute,” a department representative said, urging any recommendation to note the need for legislative change.

Jean said the group should first conduct a feasibility study — assessing losses, premiums and necessary surplus reserves — before recommending implementation of expanded products. Others raised concerns that shifting coverage to the FAIR Plan could simply move costs between groups rather than lower overall premiums. The chair and staff agreed to narrow the recommendation language to ask the legislature to consider updating FAIR Plan board composition and to circulate revised language ahead of the next meeting.

The item drew mixed fist‑to‑5 ratings during the meeting; members emphasized distinguishing availability of coverage from reductions in overall cost. Staff will incorporate members’ edits and circulation timelines into the draft report to be finalized at the Feb. 5 meeting.