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CA Department of Insurance

FAIR plan ordered to cease and desist fire insurance moratorium

News: 2017 Press Release

For Release: December 14, 2017
Media Calls Only: 916-492-3566
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FAIR plan ordered to cease and desist fire insurance moratorium
Insurance Commissioner’s action leads FAIR to immediately lift moratorium
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones issued the following statement:

"This morning I issued a cease and desist order requiring the California FAIR Plan to terminate immediately the moratorium it initiated on writing new fire insurance coverage in wildfire-impacted areas and ordering the FAIR Plan to make its fire insurance products available to all eligible Californians in keeping with its statutorily mandated purpose. I've been advised the FAIR Plan, after being notified of the cease and desist, agreed to lift its moratorium on writing new policies.

I originally took this action after receiving information that the FAIR Plan imposed a moratorium on writing new policies in current active fire zones across California. The FAIR Plan was established as the fire insurer of last resort to make certain California property owners have access to fire insurance coverage. There is no statutory allowance for the FAIR Plan to discontinue writing fire insurance policies for applicants anywhere in the state who need fire insurance coverage to protect themselves from financial loss. While the FAIR Plan is required to write coverage, any individuals or entities who attempt to commit insurance fraud by placing FAIR Plan or any other insurance coverage on damaged property to cover losses that already occurred will be investigated and prosecuted. If anyone is denied the opportunity to purchase a FAIR plan policy should contact our consumer hotline at 800-927-4357."

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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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