California FAIR Plan Association: automatic payments.
AB 290
California Bills
20250AB__029089CHP INTRODUCED 2025-01-22 AMENDED_ASSEMBLY 2025-02-18 AMENDED_ASSEMBLY 2025-04-03 AMENDED_ASSEMBLY 2025-04-21 AMENDED_ASSEMBLY 2025-05-01 AMENDED_SENATE 2025-06-17 AMENDED_SENATE 2025-07-03 AMENDED_SENATE 2025-08-25 AMENDED_SENATE 2025-09-05 PASSED_ASSEMBLY 2025-09-12 PASSED_SENATE 2025-09-11 ENROLLED 2025-09-16 CHAPTERED 2025-10-09 APPROVED 2025-10-09 FILED 2025-10-09 2025 AB CHP CHP 0 Introduced by Assembly Member Bauer-Kahan (Coauthors: Assembly Members Addis, Gipson, Hadwick, and Harabedian) LEAD_AUTHOR ASSEMBLY Bauer-Kahan COAUTHOR ASSEMBLY Addis COAUTHOR ASSEMBLY Gipson COAUTHOR ASSEMBLY Hadwick COAUTHOR ASSEMBLY Harabedian
An act to add
Section 10095.8 to the Insurance Code, relating to insurance. insurance 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 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. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:
SECTION
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