Bill > AB290

This bill requires the California FAIR Plan Association (FAIR Plan), which provides property insurance to homeowners who can't obtain coverage through traditional insurance markets, to establish an automatic payment system for insurance premiums by April 1, 2026. The bill mandates that the automatic payment amount must be identical to other payment methods, ensuring policyholders aren't penalized financially for choosing automatic payments. Importantly, the bill prohibits the FAIR Plan from canceling or refusing to renew a policy solely because a policyholder is not enrolled in automatic payments. Additionally, the bill provides a 10-day grace period for policyholders who fail to make a premium installment payment on time, giving them an opportunity to catch up without immediately losing their insurance coverage. This legislation aims to provide more flexible and consumer-friendly payment options for homeowners who rely on the FAIR Plan for property insurance, particularly in areas with high wildfire or other insurance risk.

Budget and Finance, Business and Industry, Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB290