Assembly BillChaptered/SignedInsurance
AB 69: FAIR Plan policy notices and renewals.
What AB 69 does, verified September 29, 2026
The California Fair Plan Association is required to implement programs to help reduce the number of existing fair plan policies. This bill would add a new requirement to the association. The association must now provide policyholders with a notice regarding their coverage options at least annually, including with the initial policy issuance and upon each renewal. This notice will help policyholders understand their coverage options and make informed decisions.
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Last action: Chaptered by Secretary of State - Chapter 496, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 496, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 09, 2026 | Enrolled and presented to the Governor at 1 p.m. |
| Aug. 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6928.). |
| Aug. 30, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 4,156 words
Assembly Bill No. 69
CHAPTER 496
An act to amend Sections 10095 and 10095.5 of, and to add Section 10095.2 to, the Insurance Code, relating to insurance.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 69, Calderon. FAIR Plan policy notices and renewals.
The California FAIR Plan Association is 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 requires the association to implement programs to help reduce the number of existing FAIR Plan policies, including clearinghouse programs in which a participating insurer offers homeowners or commercial insurance to FAIR Plan policyholders. Existing law requires an agent or broker transacting basic property insurance to assist a person in obtaining basic property insurance coverage by one of several specified methods, including making an application for insurance through the FAIR Plan.
On and after January 1, 2028, this bill would authorize the association to share policyholder information with insurers participating in the clearinghouse program, as specified, to allow a participating insurer to offer a policy to a FAIR Plan policyholder and, if there is an agent or broker of record listed on the policy, would require the insurer to make the offer simultaneously to the agent or broker of record and the FAIR Plan policyholder. Commencing May 1, 2027, the bill would require a participating insurer to report to the association on a quarterly basis the number of policies it has issued to FAIR Plan policyholders. The bill would require the association to report aggregated numbers within 30 days, as specified, and post and quarterly update on its internet website a list of participating insurers in the clearinghouse programs. The bill would require the association to provide all policyholders with a notice regarding their coverage options at least annually, including with the initial policy issuance and upon each renewal. The bill would require an agent or broker transacting basic property insurance to assist a person in obtaining basic property insurance coverage by providing the person with information on the clearinghouse programs, among other specified assistance. The bill would require the association to require registered agents and brokers to complete the association’s department-approved training on the association’s and the broker’s responsibility to advise policyholders on the voluntary market options.
This bill would incorporate additional changes to Section 10095 of the Insurance Code proposed by AB 1680 to be operative only if this bill and AB 1680 are enacted and this bill is enacted last.
This bill would incorporate additional changes to Section 10095.5 of the Insurance Code proposed by AB 2061 to be operative only if this bill and AB 2061 are enacted and this bill is enacted last.
The people of the State of California do enact as follows:
SECTION 1.
Section 10095 of the Insurance Code is amended to read:10095.
(a) Within 30 days following the effective date of this chapter, the association shall submit to the commissioner, for the commissioner’s review, a proposed plan of operation, consistent with this chapter, creating an association consisting of all insurers licensed to write and engaged in writing in this state, on a direct basis, basic property insurance or any component of basic property insurance in homeowners’ or other dwelling multiperil policies. An insurer described in this subdivision shall be a member of the association and shall remain a member as a condition of its authority to transact those kinds of insurance in this state.(b) The proposed plan shall authorize the association to assume and cede reinsurance on risks written by insurers in conformity with the program.
(c) Under the plan, an insurer shall participate in the writings, expenses, profits, and losses of the association in the proportion that its premiums written during the second preceding calendar year bear to the aggregate premiums written by all insurers in the program, excluding that portion of the premiums written attributable to the operation of the association. Premiums written on a policy of basic residential earthquake insurance issued by the California Earthquake Authority pursuant to Section 10089.6 shall be attributed to the insurer that writes the underlying policy of residential property insurance.
(d) The plan shall provide for administration by a governing committee under rules to be adopted by the governing committee with the approval of the commissioner. Voting on administrative questions of the association and facility shall be weighted in accordance with each insurer’s premiums written during the second preceding calendar year as disclosed in the reports filed by the insurer with the commissioner.
(e) (1) The plan shall provide for a plan to encourage persons to secure basic property insurance through normal channels from an admitted insurer or a licensed surplus line broker by informing those persons what steps they must take in order to secure the insurance through normal channels.
(2) The association shall require registered agents and brokers to complete the association’s department-approved Brokers and FAIR Plan course, which provides training on the association’s and the broker’s responsibility to advise policyholders on the voluntary market options.
(f) The plan shall be subject to the approval of the commissioner and shall go into effect upon the tentative approval of the commissioner. The commissioner may, at any time, withdraw tentative approval or the commissioner may, at any time after giving final approval, revoke that approval if the commissioner feels it is necessary to carry out the purposes of the chapter. The withdrawal or revocation of that approval shall not affect the validity of any policies executed before the date of the withdrawal. If the commissioner disapproves or withdraws or revokes their approval to all or any part of the plan of operation, the association shall, within 30 days, submit for review an appropriately revised plan or part of a revised plan, and, if the association fails to do so, or if the revised plan is unacceptable, the commissioner shall promulgate a plan of operation or part of a plan as the commissioner may deem necessary to carry out this chapter.
(g) The association may, on its own initiative or at the request of the commissioner, amend the plan of operation, subject to approval by the commissioner, who shall have supervision of the inspection bureau, the facility, and the association. The commissioner, or any person designated by the commissioner, shall have the power of visitation of and examination into the operation and free access to all the books, records, files, papers, and documents that relate to operation of the facility and association, and may summon, qualify, and examine as witnesses all persons having knowledge of those operations, including officers, agents, or employees thereof.
(h) An insurer member of the plan shall provide to an applicant who is denied coverage, or a policyholder whose policy is canceled or not renewed, the internet website address and statewide toll-free telephone number for the plan established pursuant to Section 10095.5 for the purpose of obtaining information and assistance in obtaining basic property insurance.
(i) (1) To reduce the association’s concentration and number of policies, and to encourage maximum use of the normal insurance market consistent with subdivision (c) of Section 10090, the association shall develop and implement a clearinghouse program on or before July 1, 2021, to help reduce the number of existing FAIR Plan policies and provide the opportunity for admitted insurers to offer homeowners’ insurance policies to FAIR Plan policyholders. An insurer that participates in the clearinghouse program shall sign an agreement with the association that sets forth the terms and conditions for the insurer to offer homeowners’ insurance through the policy’s listed agent or broker of record, if any. The clearinghouse program may include a provision to include nonadmitted insurers if admitted insurers have the first option.
(2) On and after January 1, 2028, to increase availability of consumer choice, the association may share with those insurers participating in the clearinghouse program relevant policyholder information, including any agent or broker of record listed on the policy, that allows a participating insurer to offer a homeowners insurance policy to a FAIR Plan policyholder. If there is an agent or broker of record listed on the policy, an insurer shall make an offer simultaneously to the agent or broker of record and the FAIR Plan policyholder.
(j) (1) To reduce the association’s concentration and number of commercial policies, and to encourage maximum use of the normal insurance market consistent with subdivision (c) of Section 10090, the association shall develop and implement a commercial insurance policy clearinghouse program on or before July 1, 2024, to help reduce the number of existing FAIR Plan commercial policies and provide the opportunity for admitted insurers to offer commercial insurance policies to FAIR Plan policyholders. An insurer that participates in the commercial policy clearinghouse program shall sign an agreement with the association that sets forth the terms and conditions for the insurer to offer commercial insurance through the policy’s listed agent or broker of record, if any. The commercial policy clearinghouse program may include a provision to include nonadmitted insurers if admitted insurers have the first option.
(2) On and after January 1, 2028, to increase availability of consumer choice, the association may share with those insurers participating in the clearinghouse program relevant policyholder information, including any agent or broker of record listed on the policy, that allows a participating insurer to offer a commercial insurance policy to a FAIR Plan policyholder. If there is an agent or broker of record listed on the policy, an insurer shall make an offer simultaneously to the agent or broker of record and the FAIR Plan policyholder.
(k) (1) With respect to the clearinghouse programs referenced in subdivisions (i) and (j), the association shall comply with the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1) and regulations on the Privacy of Nonpublic Personal Information (Subchapter 5.9 (commencing with Section 2689.1) of Chapter 5 of Title 10 of the California Code of Regulations).
(2) The association shall provide all policyholders with notice of each of the following:
(A) The manner in which the association shall share policyholders’ personal information to facilitate offers of private insurance through the clearinghouse programs.
(B) A method to opt out of the sharing of policyholders’ personal information in connection with the clearinghouse programs.
(l) Commencing May 1, 2027, every admitted and nonadmitted insurer that participates in the clearinghouse programs referenced in subdivisions (i) and (j) shall report to the association on a quarterly basis the number of policies it has issued to policyholders in the association as a result of that participation. The association shall report aggregated numbers within 30 days to the commissioner, the Assembly Committee on Insurance, and the Senate Committee on Insurance, and post the aggregated numbers on the association’s public internet website.
SEC. 1.5.
Section 10095 of the Insurance Code is amended to read:10095.
(a) Within 30 days following the effective date of this chapter, the association shall submit to the commissioner, for the commissioner’s review, a proposed plan of operation, consistent with this chapter, creating an association consisting of all insurers licensed to write and engaged in writing in this state, on a direct basis, basic property insurance or any component of basic property insurance in homeowners’ or other dwelling multiperil policies. An insurer described in this subdivision shall be a member of the association and shall remain a member as a condition of its authority to transact those kinds of insurance in this state.(b) The proposed plan shall authorize the association to assume and cede reinsurance on risks written by insurers in conformity with the program.
(c) Under the plan, an insurer shall participate in the writings, expenses, profits, and losses of the association in the proportion that its premiums written during the second preceding calendar year bear to the aggregate premiums written by all insurers in the program, excluding that portion of the premiums written attributable to the operation of the association. Premiums written on a policy of basic residential earthquake insurance issued by the California Earthquake Authority pursuant to Section 10089.6 shall be attributed to the insurer that writes the underlying policy of residential property insurance.
(d) The plan shall provide for administration by a governing committee under rules to be adopted by the governing committee with the approval of the commissioner. Voting on administrative questions of the association and facility shall be weighted in accordance with each insurer’s premiums written during the second preceding calendar year as disclosed in the reports filed by the insurer with the commissioner.
(e) (1) The plan shall provide for a plan to encourage persons to secure basic property insurance through normal channels from an admitted insurer or a licensed surplus line broker by informing those persons what steps they must take in order to secure the insurance through normal channels.
(2) The association shall require registered agents and brokers to complete the association’s department-approved Brokers and FAIR Plan course, which provides training on the association’s and the broker’s responsibility to advise policyholders on the voluntary market options.
(f) The plan shall be subject to the approval of the commissioner and shall go into effect upon the tentative approval of the commissioner. The commissioner may, at any time, withdraw tentative approval or the commissioner may, at any time after giving final approval, revoke that approval if the commissioner feels it is necessary to carry out the purposes of the chapter. The withdrawal or revocation of that approval shall not affect the validity of any policies executed before the date of the withdrawal. If the commissioner disapproves or withdraws or revokes their approval to all or any part of the plan of operation, the association shall, within 30 days, submit for review an appropriately revised plan or part of a revised plan, and, if the association fails to do so, or if the revised plan is unacceptable, the commissioner shall promulgate a plan of operation or part of a plan as the commissioner may deem necessary to carry out this chapter.
(g) (1) The association may, on its own initiative or at the request of the commissioner, amend the plan of operation, subject to prior approval by the commissioner, who shall have supervision of the inspection bureau, the facility, and the association. The commissioner, or their designee, shall have the power of visitation of and examination into the operation and free access to all the books, records, files, papers, and documents that relate to operation of the facility and association, and may summon, qualify, and examine as witnesses all persons having knowledge of those operations, including officers, agents, or employees thereof. The association shall take corrective actions, as specified by the commissioner or their designee, to rectify violations of applicable statutes, regulations, accounting principles, the plan of operation, or other legally binding applicable rules identified in the report of examination or any other operational report conducted pursuant to this section. If the association fails to take the specified corrective action within a timeframe agreed upon by the commissioner or their designee, the association shall be subject to a penalty of not more than twenty thousand dollars ($20,000) for each failure to take corrective action. These penalties may be in addition to any other penalties provided by law.
(2) The association may request additional extensions of 30 calendar days or other greater extensions approved by the commissioner, for good cause, in order to comply. The commissioner or their designee may deny a request for an extension of time if it is determined the request is not made in good faith or there has not been a good faith effort to comply. For purposes of this subdivision, “good cause” shall include circumstances beyond the association’s control, a showing that the association has made a good faith effort to comply, or other factors agreed to by the commissioner.
(3) For purposes of this subdivision, a failure to take corrective action shall be determined per specific category of corrective action requested as described in the examination.
(h) An insurer member of the association shall provide to an applicant who is denied coverage, or a policyholder whose policy is canceled or not renewed, the internet website address and statewide toll-free telephone number for the association established pursuant to Section 10095.5 for the purpose of obtaining information and assistance in obtaining basic property insurance.
(i) (1) To reduce the association’s concentration and number of policies, and to encourage maximum use of the normal insurance market consistent with subdivision (c) of Section 10090, the association shall develop and implement a clearinghouse program on or before July 1, 2021, to help reduce the number of existing FAIR Plan policies and provide the opportunity for admitted insurers to offer homeowners’ insurance policies to FAIR Plan policyholders. An insurer that participates in the clearinghouse program shall sign an agreement with the association that sets forth the terms and conditions for the insurer to offer homeowners’ insurance through the policy’s listed agent or broker of record, if any. The clearinghouse program may include a provision to include nonadmitted insurers if admitted insurers have the first option.
(2) On and after January 1, 2028, to increase availability of consumer choice, the association may share with those insurers participating in the clearinghouse program relevant policyholder information, including any agent or broker of record listed on the policy, that allows a participating insurer to offer a homeowners insurance policy to a FAIR Plan policyholder. If there is an agent or broker of record listed on the policy, an insurer shall make an offer simultaneously to the agent or broker of record and the FAIR Plan policyholder.
(j) (1) To reduce the association’s concentration and number of commercial policies, and to encourage maximum use of the normal insurance market consistent with subdivision (c) of Section 10090, the association shall develop and implement a commercial insurance policy clearinghouse program on or before July 1, 2024, to help reduce the number of existing FAIR Plan commercial policies and provide the opportunity for admitted insurers to offer commercial insurance policies to FAIR Plan policyholders. An insurer that participates in the commercial policy clearinghouse program shall sign an agreement with the association that sets forth the terms and conditions for the insurer to offer commercial insurance through the policy’s listed agent or broker of record, if any. The commercial policy clearinghouse program may include a provision to include nonadmitted insurers if admitted insurers have the first option.
(2) On and after January 1, 2028, to increase availability of consumer choice, the association may share with those insurers participating in the clearinghouse program relevant policyholder information, including any agent or broker of record listed on the policy, that allows a participating insurer to offer a commercial insurance policy to a FAIR Plan policyholder. If there is an agent or broker of record listed on the policy, an insurer shall make an offer simultaneously to the agent or broker of record and the FAIR Plan policyholder.
(k) (1) With respect to the clearinghouse programs referenced in subdivisions (i) and (j), the association shall comply with the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1) and regulations on the Privacy of Nonpublic Personal Information (Subchapter 5.9 (commencing with Section 2689.1) of Chapter 5 of Title 10 of the California Code of Regulations).
(2) The association shall provide all policyholders with notice of each of the following:
(A) The manner in which the association shall share policyholders’ personal information to facilitate offers of private insurance through the clearinghouse programs.
(B) A method to opt out of the sharing of policyholders’ personal information in connection with the clearinghouse programs.
(l) Commencing May 1, 2027, every admitted and nonadmitted insurer that participates in the clearinghouse programs referenced in subdivisions (i) and (j) shall report to the association on a quarterly basis the number of policies it has issued to policyholders in the association as a result of that participation. The association shall report aggregated numbers within 30 days to the commissioner, the Assembly Committee on Insurance, and the Senate Committee on Insurance, and post the aggregated numbers on the association’s public internet website.
SEC. 2.
Section 10095.2 is added to the Insurance Code, to read:10095.2.
(a) The association shall provide all policyholders with a notice that includes the following in 14-point boldface type:“IMPORTANT NOTICE:
CONTACT YOUR BROKER TO SEE IF OTHER COVERAGE IS AVAILABLE.
YOU HAVE THE RIGHT TO SHOP AROUND.
The insurance marketplace changes regularly, so the FAIR Plan may not be your only option.
ASK YOUR BROKER TO HELP GUIDE YOU IN FINDING THE MOST SUITABLE AVAILABLE INSURANCE OPTIONS FOR YOU.
Use the California Department of Insurance Home Insurance Finder as a resource, an online tool that can assist you in obtaining insurance for your home.”
(b) The notice required pursuant to subdivision (a) shall be provided at least annually, including with the initial policy issuance and upon each renewal, and shall be on a separate page from any other notice, information, or disclosure.
SEC. 3.
Section 10095.5 of the Insurance Code is amended to read:10095.5.
(a) The association shall establish and maintain an internet website and a statewide toll-free telephone number through which a person may receive information and assistance in applying for insurance through the plan. The association shall cause the toll-free telephone number to be published in all general distribution telephone directories in the state and shall include the toll-free telephone number and internet website address on all communications with an applicant or insured.(b) An insurance agent or broker transacting basic property insurance shall assist a person seeking the agent’s or broker’s help in obtaining basic property insurance coverage by the following methods:
(1) Making an application for insurance through the plan by submitting an application at the person’s request.
(2) Providing the person with the California FAIR Plan’s internet website address and the toll-free telephone number.
(3) Making an application for insurance, at the person’s request, and placing that person with or through an insurer that offers, or a surplus line broker that procures, basic property insurance coverage.
(4) Providing the person with information on the clearinghouse programs referenced in subdivisions (i) and (j) of Section 10095.
(c) The association shall post on its internet website a list of admitted and nonadmitted insurers that participate in the clearinghouse programs referenced in subdivisions (i) and (j) of Section 10095 and shall update the list quarterly.
SEC. 3.5.
Section 10095.5 of the Insurance Code is amended to read:10095.5.
(a) The association shall establish and maintain an internet website and a statewide toll-free telephone number through which a person may receive information and assistance in applying for insurance through the plan. The association shall include the toll-free telephone number and internet website address on all communications with an applicant or insured.(b) An insurance agent or broker transacting basic property insurance shall assist a person seeking the agent’s or broker’s help in obtaining basic property insurance coverage by the following methods:
(1) Making an application for insurance through the plan by submitting an application at the person’s request.
(2) Providing the person with the California FAIR Plan’s internet website address and the toll-free telephone number.
(3) Making an application for insurance, at the person’s request, and placing that person with or through an insurer that offers, or a surplus line broker that procures, basic property insurance coverage.
(4) Providing the person with information on the clearinghouse programs referenced in subdivisions (i) and (j) of Section 10095.
(c) The association shall post on its internet website a list of admitted and nonadmitted insurers that participate in the clearinghouse programs referenced in subdivisions (i) and (j) of Section 10095 and shall update the list quarterly.
SEC. 4.
Section 1.5 of this bill incorporates amendments to Section 10095 of the Insurance Code proposed by both this bill and Assembly Bill 1680. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 10095 of the Insurance Code, and (3) this bill is enacted after Assembly Bill 1680, in which case Section 1 of this bill shall not become operative.SEC. 5.
Section 3.5 of this bill incorporates amendments to Section 10095.5 of the Insurance Code proposed by both this bill and Assembly Bill 2061. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 10095.5 of the Insurance Code, and (3) this bill is enacted after Assembly Bill 2061, in which case Section 3 of this bill shall not become operative.Text of AB 69 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions