California Insurer of Last Resort Wants to Tap Bonds for Claims

Feb. 12, 2025, 10:42 PM UTC

Sponsors of a measure that would allow California’s property insurer of last resort to use state-issued bonds to recover wildfire claims have received a boost with backing from the plan’s administrator for the proposal.

Administrators for the FAIR plan announced their support for the bill (AB 226) that would allow the California Infrastructure and Economic Development Bank to issue bonds that would increase the plan’s liquidity and pay policyholders without requiring insurers provide a large lump sum at once.

The endorsement followed Tuesday’s announcement that the FAIR plan would charge insurers operating in the state a total of ...

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