The California FAIR Plan Association is the private non-profit organization that runs California's state-licensed insurer of last resort. As of December 2025, the Association administers more than 668,000 residential policies and $645 billion in residential exposure. It is funded by every admitted property insurer in California, governed by an industry-and-public Board, and regulated by the California Department of Insurance. This guide covers governance, funding, the historic 2025 member-carrier assessment, recent capital actions, and how to contact the Association.
Key Takeaways
- The California FAIR Plan Association is a private non-profit established under California Insurance Code § 10090. It is not a state agency and is not taxpayer-funded.
- The Association is funded by every admitted property insurer doing business in California, with each insurer's share proportional to its CA admitted property market share.
- In February 2025, the California Insurance Commissioner approved Order 2025-1, authorizing a $1 billion member-carrier assessment to fund Palisades and Eaton fire claim payments. This was the first FAIR Plan assessment since 1994 (Northridge earthquake).
- The Association issued a $750 million Golden Bear Re catastrophe bond in December 2025, providing three-year wildfire reinsurance through February 2029. A second tranche is targeting $400 million in 2026.
- The Association is headquartered in Los Angeles and operates an agent and broker portal at cfpnet.com. All applications go through licensed agents, not directly from consumers.
What Is the California FAIR Plan Association?
The California FAIR Plan Association is a private, non-profit organization established under California Insurance Code § 10090 that administers the California Fair Access to Insurance Requirements (FAIR) Plan. It is funded and operated by every admitted property insurer doing business in California, with each insurer's share of obligations proportional to its CA admitted property market share. The Association is not a state agency, not taxpayer-funded, and not part of the California Department of Insurance, though the CDI regulates rates, policy forms, and assessments.
The Association was established in 1968 by the California legislature as part of implementing the federal Urban Property Protection and Reinsurance Act of 1968. Its original mission was urban civil-unrest and arson coverage in underserved areas after the 1965 Watts riots demonstrated that admitted carriers had largely abandoned those neighborhoods. The Association has operated continuously since 1968. Today its primary function is wildfire-zone insurer of last resort, a substantially different mission than the original 1968 mandate.
For a broader plain-language explainer of the FAIR Plan and what it covers, see what is the California FAIR Plan.
How the California FAIR Plan Association Is Governed
The California FAIR Plan Association is governed by a Board of Directors with industry and public-member representation. The California Insurance Commissioner appoints the public Board members and the Board chair. The California Department of Insurance approves rates, policy forms, and member-carrier assessments. Day-to-day operations are run through operating committees focused on underwriting, claims, and finance.
Governance structure:
- Board of Directors — industry-member directors (representing member admitted carriers) + public-member directors
- Board Chair — appointed by the California Insurance Commissioner
- Public Members — appointed by the California Insurance Commissioner, represent consumer and public interests
- Operating Committees — Underwriting, Claims, Finance, and others
- California Department of Insurance — regulatory oversight, rate filing approval, assessment approval
- California State Legislature — establishes statutory framework via Insurance Code
The Association's CEO and senior staff handle daily operations. The Board sets policy direction, approves rate filings before submission to the CDI, and authorizes major actions including catastrophe bond issuances and member assessments.
Who Funds the California FAIR Plan?
The California FAIR Plan is funded by every admitted property insurer writing residential or commercial property in California. Each member insurer's share of FAIR Plan obligations is calculated proportional to its market share of California admitted property premium. Members receive proportional rights to FAIR Plan premium income and proportional exposure to FAIR Plan losses.
The funding mechanism in practice:
- Every admitted CA property insurer is automatically a FAIR Plan Association member
- Membership is required by statute (Insurance Code § 10090 et seq.)
- Members' obligations are proportional to their CA admitted property market share
- Members share in premium income and loss exposure proportionally
- When losses exceed reserves and reinsurance, the Board can authorize a member assessment to raise additional capital
The Association does not receive state appropriations or federal funding. Premium paid by FAIR Plan policyholders, member-carrier contributions, and reinsurance proceeds are the only revenue sources.
The 2025 Member Assessment
On February 11, 2025, the California Department of Insurance approved Order 2025-1, authorizing a $1 billion member-carrier assessment against FAIR Plan member insurers. This was the first FAIR Plan member assessment since 1994 (Northridge earthquake) and the largest in the Association's history. The assessment was triggered by the combined Palisades and Eaton fire exposure of approximately $4.8 billion, which exceeded available FAIR Plan reserves and reinsurance.
Order 2025-1 mechanics:
- $1 billion assessment against FAIR Plan member carriers
- Each member's share proportional to its CA admitted property market share
- Members can recoup 50% from policyholders via a temporary supplemental fee with CDI approval
- Members can recoup 100% from policyholders above $1 billion in any calendar year
- Assessment funded immediate claim payments while reinsurance recoveries process
Source: Carrier Management coverage of Order 2025-1 and JLK Rosenberger analysis of the assessment.
Significance of the assessment:
- First since 1994 (Northridge) — 31-year gap
- Signals structural strain on the FAIR Plan model as a single-state insurer of last resort
- Catalyzed the Lara + Asm. Calderon FAIR Plan structural reform bill announced January 2026
- Driving discussion of long-term FAIR Plan funding and capital structure
The Association's response to additional capital needs after the assessment has shifted toward the catastrophe-bond market rather than additional member assessments.
Recent Capital Actions and Reforms
After the $1 billion assessment, the California FAIR Plan Association turned to the catastrophe bond market for additional capital rather than authorizing a second cash assessment. This is the Association's first major use of insurance-linked securities and represents a structural shift in how it funds large-loss exposure.
Golden Bear Re catastrophe bond program:
- December 2025: $750 million issuance — three-year wildfire coverage through February 2029
- 2026 target: $400 million second tranche — extending coverage capacity
- Three-year coverage period covers Q1 2026 through Q1 2029
- Bond holders receive interest in exchange for accepting wildfire loss exposure
Source: Artemis.bm coverage of Golden Bear Re.
Structural reform legislation (2026): On January 2026, Commissioner Lara and Assemblymember Calderon announced a FAIR Plan structural reform bill that would update the FAIR Plan's governance, capital structure, and rate-setting mechanisms. Source: CDI release005-2026.
Other 2025-2026 Association actions:
- 35.8% average rate increase filed October 2025 — pending CDI approval for April 2026 effective date
- Commercial High Value program launched July 26, 2025 — raised commercial limits to $20M building / $100M location through July 2028
- Wildfire hardening discounts launched November 15, 2025 — up to 16.4% off the wildfire portion of premium
California FAIR Plan Association Contact Information
The California FAIR Plan Association is headquartered in Los Angeles and operates an agent and broker portal at cfpnet.com. Direct consumer applications are not accepted; all FAIR Plan policies are placed through California-licensed insurance agents who are agents-of-record with the Association.
Key contact paths:
- Website: cfpnet.com
- Agent / broker portal: at cfpnet.com (login required, agent-of-record only)
- Policyholder login portal: at cfpnet.com (login required, policy in force)
- Customer service phone: published on cfpnet.com (most current contact)
- Mailing address: published on cfpnet.com (most current address)
- Premium estimator: free online tool at cfpnet.com (basic estimate, not binding)
Important: agent-of-record requirement. The FAIR Plan does not accept direct consumer applications, claim filings, or policy changes. Every interaction with the Association is routed through a California-licensed agent who is an agent-of-record with the Association. Selecting an agent-of-record is the first step in placing or modifying a FAIR Plan policy.
How to File a Claim with the California FAIR Plan
You file a claim with the California FAIR Plan through your agent-of-record or directly through the FAIR Plan claim portal at cfpnet.com. The Association assigns a claim adjuster, schedules an inspection (typically within 24 to 72 hours of initial contact), and processes the covered loss up to the policy limit minus the deductible.
Claim filing checklist:
- 1.Initial contact with the FAIR Plan or agent-of-record (24-hour line is the fastest path during a loss event)
- 2.Document the loss with photos, video, and a written summary of what was damaged
- 3.Preserve damaged property for the adjuster's inspection (do not discard before inspection unless safety requires it)
- 4.Submit the proof-of-loss documentation as requested by the adjuster
- 5.Coordinate with mortgage holder if the property is financed (lender is loss payee)
Typical timeline:
- Initial contact response: 24 to 72 hours
- Adjuster inspection: 1 to 7 days after initial contact (longer in catastrophe events)
- Initial advance payment: typically within 30 days for clearly-covered losses
- Final payment: 30 to 120 days depending on complexity
For large-loss events like the January 2025 Palisades and Eaton fires, the Association mobilized a substantial adjuster workforce and processed approximately $914 million in claim payments within the first month and approximately $3.5 billion within the first year. Source: California FAIR Plan one-year retrospective.
California FAIR Plan Association History
The California FAIR Plan Association has operated continuously since 1968 but has undergone substantial mission evolution. Major milestones:
1968 — California legislature establishes the FAIR Plan via Insurance Code § 10090, implementing the federal Urban Property Protection and Reinsurance Act of 1968. Original mission: urban civil-unrest and arson coverage in underserved areas.
1968-1980s — Primary FAIR Plan policy count growth from urban civil-unrest applications.
1994 — Northridge earthquake produces the first FAIR Plan member assessment in the Association's history.
1990s-2000s — Modest growth, manageable claims, gradual expansion to include coastal and wildfire-zone properties as admitted appetite narrowed.
2017-2018 — California wildfires (Tubbs, Camp, Woolsey) drive the first major modern surge in policy count. FAIR Plan begins to function as a de facto wildfire-zone insurer of last resort.
2020-2024 — FAIR Plan residential policy count more than doubles. Admitted-carrier non-renewals in wildfire zones accelerate. The Association's exposure base grows to $645 billion.
January 7-31, 2025 — Palisades and Eaton fires produce combined claim exposure of approximately $4.8 billion.
February 11, 2025 — CDI approves Order 2025-1, the $1 billion member assessment (first since 1994).
July 26, 2025 — Commercial High Value program launches, raising commercial limits to $20M building / $100M location through July 2028.
November 15, 2025 — Wildfire hardening discount stack launches, up to 16.4% off wildfire premium portion.
December 2025 — $750 million Golden Bear Re catastrophe bond issued, three-year wildfire coverage through February 2029.
January 2026 — Commissioner Lara and Asm. Calderon announce FAIR Plan structural reform bill.
2026 (pending) — 35.8% average rate increase pending CDI approval for April 2026; second Golden Bear Re tranche targeting $400 million.
California FAIR Plan vs Other State FAIR Plans
Most states have a FAIR Plan or equivalent residual-market mechanism. California's FAIR Plan is the largest by exposure and has the most active recent growth, but the structural model is similar to other state programs.
Notable state residual-market mechanisms:
- California FAIR Plan — private non-profit, member-funded, ~$645B residential exposure
- Florida Citizens Property Insurance — state-backed, much larger total exposure including commercial
- Texas Windstorm Insurance Association (TWIA) — coastal residual-market mechanism
- North Carolina Beach Plan — coastal residual-market mechanism
- New York Coastal Market Assistance Program — coastal residual-market mechanism
California's FAIR Plan differs from Florida Citizens in being a private non-profit funded by member carriers rather than state-backed, but the function is similar: provide property insurance in markets admitted carriers cannot or will not serve.
Frequently Asked Questions
What is the California FAIR Plan Association?
The California FAIR Plan Association is a private, non-profit organization established under California Insurance Code § 10090 that administers the California Fair Access to Insurance Requirements (FAIR) Plan. It is funded by every admitted property insurer doing business in California and governed by a Board of Directors with industry and public members. It is not a state agency and is not taxpayer-funded.
Who runs the California FAIR Plan?
The California FAIR Plan Association runs the California FAIR Plan. The Association is governed by a Board of Directors with industry and public-member representation. The California Insurance Commissioner appoints the public Board members and the Board chair. The California Department of Insurance regulates the Association, approves rates and policy forms, and approves member-carrier assessments.
Is the FAIR Plan run by the state of California?
No. The California FAIR Plan is run by the California FAIR Plan Association, a private non-profit organization. It is not part of the California Department of Insurance and is not a state agency. The CDI regulates the FAIR Plan but does not run it. The FAIR Plan is not taxpayer-funded; its operations are funded by member-carrier contributions and policyholder premium.
Where is the California FAIR Plan Association located?
The California FAIR Plan Association is headquartered in Los Angeles. Current contact information including phone, mailing address, and customer service hours is published at cfpnet.com.
What is the FAIR Plan Association phone number?
The current customer service phone number is published at cfpnet.com. The Association also operates a separate claim-line phone number for active loss reporting. Direct consumer applications are not accepted; agent-of-record routing is required for policy applications and changes.
How do I contact the California FAIR Plan?
You contact the California FAIR Plan through your agent-of-record (for policy questions, applications, changes) or directly via the customer service line at cfpnet.com (for claims, general inquiries). The website cfpnet.com is the primary entry point and has current contact information.
Can I apply for the FAIR Plan online?
No. The California FAIR Plan does not accept direct consumer applications. All applications must be submitted by a California-licensed insurance agent who is an agent-of-record with the Association. The Association provides an online premium estimator at cfpnet.com for non-binding estimates, but actual applications require an agent.
How do I log into my California FAIR Plan account?
Active FAIR Plan policyholders can log in to their account through the policyholder portal at cfpnet.com. The portal handles payment scheduling, policy document download, and claim filing. Agent-of-record information is required to access many account functions; if you do not know who your agent of record is, contact the FAIR Plan customer service line.
What happens if the FAIR Plan runs out of money?
The California FAIR Plan does not "run out of money" in the way an individual carrier could. When losses exceed reserves and reinsurance, the Board of Directors can authorize a member-carrier assessment with CDI approval. The most recent example was the $1 billion assessment approved February 11, 2025 (Order 2025-1). Members can recoup up to 50% of the assessment from policyholders via temporary supplemental fees with CDI approval, and 100% above $1 billion in a calendar year. The Association has also added catastrophe-bond capacity ($750M Golden Bear Re in December 2025, $400M second tranche targeted 2026) to reduce reliance on member assessments.
Sources
- California FAIR Plan Association, official site
- California FAIR Plan Association, key statistics and policy data
- California FAIR Plan Association, one-year retrospective on Eaton and Palisades fires
- California Department of Insurance, release005-2026 on FAIR Plan structural reform
- California Department of Insurance, release028-2025 on Commercial High Value program
- Carrier Management, Order 2025-1 assessment coverage
- JLK Rosenberger, analysis of the $1 billion assessment
- Artemis.bm, Golden Bear Re catastrophe bond coverage
- California Insurance Code § 10090 et seq.
- Federal Urban Property Protection and Reinsurance Act of 1968
Last updated: May 11, 2026.