FOR IMMEDIATE RELEASE

March 6, 2025

Contact: Chris Jonsmyr

Chris Jonsmyr@asm.ca.gov

(619) 800-2080

Assemblymember David Alvarez’s Bill to Strengthen California’s Insurance Market Passes

Assembly Insurance Committee with Unanimous Support

Sacramento, CA – Yesterday, Assembly Bill 226 – The FAIR Plan Stabilization Act, authored

by Assemblymember David Alvarez (D-San Diego), passed the Assembly Insurance Committee

with unanimous support. This critical measure will protect California homeowners and ensure

the financial stability of the Fair Access to Insurance Requirements (FAIR) Plan by authorizing

the plan to request bond issuance in the event of a catastrophe.

“The insurance crisis in California has caused homeowners throughout the state to struggle to

find affordable coverage and the recent wildfires in Los Angeles are making things much

worse,” said Assemblymember David Alvarez. “AB 226 ensures that when disaster strikes,

homeowners can rely on their insurers to pay valid claims. The bill strengthens the FAIR plan

which will keep our insurance system resilient and protect homeowners from skyrocketing

premiums.”

With traditional insurers reducing their coverage options in California, the FAIR Plan has seen

an unprecedented surge in policyholders, now covering over 450,000 policies—a 63% increase

in 2024 alone. AB 226 strengthens financial safeguards for the FAIR Plan, reducing the risk of

assessments on insurers—like the $1 billion assessment issued after the catastrophic wildfires in

Los Angeles. These assessments threaten the solvency of small insurance companies, increase

premiums and further limit coverage options for California homeowners.

This bill is a reintroduction of AB 2996 that Assemblymember Alvarez introduced last year. Due

to the immediate need for this measure, AB 226 includes an urgency clause, which will take

effect immediately upon the Governor’s signature in order to prevent a collapse of the FAIR

Plan.

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