Assembly BillChaptered/SignedInsurance
AB 290: California FAIR Plan Association: automatic payments.
What AB 290 does, verified December 7, 2025
The bill aims to make changes to the California Fair Plan Association, a joint reinsurance association that provides basic property insurance to those who cannot obtain it through normal channels. The association will be required to create an automatic payment system and accept automatic payments from policyholders. This change will prohibit the cancellation or nonrenewal of a fair plan policy solely because the policyholder is not enrolled in automatic payments. A policyholder will have a period to pay any outstanding installment premium, in accordance with the existing 10-day notice requirement.
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Last action: Chaptered by Secretary of State - Chapter 475, Statutes of 2025. (2025-10-09)Alert me
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| Oct. 09, 2025 | Chaptered by Secretary of State - Chapter 475, Statutes of 2025. |
| Oct. 09, 2025 | Approved by the Governor. |
| Sep. 24, 2025 | Enrolled and presented to the Governor at 3 p.m. |
| Sep. 12, 2025 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3423.). |
| Sep. 12, 2025 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0.). |
Latest bill textChaptered version, October 9, 2025 · 300 words
Assembly Bill No. 290
CHAPTER 475
An act to add Section 10095.8 to the Insurance Code, relating to insurance.
[ Approved by Governor October 09, 2025. Filed with Secretary of State October 09, 2025. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 290, Bauer-Kahan. California FAIR Plan Association: automatic payments.
Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law authorizes cancellation of an insurance policy for nonpayment of premium, and requires an insurer to notify a policyholder at least 10 calendar days before the policy will be canceled for nonpayment.
This bill, on or before April 1, 2026, would require the California FAIR Plan Association to create an automatic payment system and accept automatic payments for premiums from policyholders. The bill would prohibit cancellation or nonrenewal of a FAIR Plan policy solely because the policyholder is not enrolled in automatic payments. The bill would provide a period for the policyholder to pay any outstanding installment premium, in accordance with the existing 10-calendar-day notice requirement.
The people of the State of California do enact as follows:
SECTION 1.
Section 10095.8 is added to the Insurance Code, to read:10095.8.
(a) On or before April 1, 2026, the association shall create an automatic payment system and accept automatic payments for premiums from policyholders.(b) A policy shall not be canceled or nonrenewed solely because the policyholder is not enrolled in automatic payments.
(c) If a policyholder fails to timely pay any outstanding installment premium, the policyholder shall have a period to pay the outstanding installment premium, in accordance with Section 677.4.
Text of AB 290 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions