Assemblymember David Alvarez Introduces AB 226 – The Fair Plan Stabilization Act to Protect Home Insurance Options Amid Catastrophic Fires

Sacramento, CA – Assemblymember David Alvarez (D-80) introduces a critical measure to protect California homeowners and the insurance market. The urgency of this legislation is in response to the catastrophic fires in Los Angeles and the potential impacts to keeping insurance available and affordable for Californians. AB 226 ensures the FAIR Plan—a last-resort insurance option for many Californians—stays financially stable.

“This bill is an excellent first step, among many we must take, to stabilize California’s insurance market by protecting the FAIR Plan, especially given the devastating fires in Los Angeles,” said Assemblymember David Alvarez. “My heart goes out to all those impacted in moments like this. They and all Californians need to know that when these disasters strike, everyone can count on their insurance coverage to pay their claims so they can begin to rebuild.”

If the FAIR Plan runs out of money, it could force insurance companies to take on massive costs. This potential cascade effect would lead to fewer insurance options, skyrocketing premiums, and more Californians struggling to find coverage. AB 226 creates a safety net by allowing the state to issue bonds to help the FAIR Plan recover after a disaster, protecting families and the market from additional chaos.

This bill is a reintroduction of AB 2996 that Assemblymember Alvarez attempted to pass last year. Recognizing the immediate need for this measure, AB 226 includes an urgency clause allowing it to take effect immediately upon the Governor’s signature in order to prevent a collapse of the FAIR Plan that would further destabilize California’s insurance market.