The California FAIR Plan Association: basic property insurance: exclusions.

Under existing law, the California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate in administering a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law defines "basic property insurance" for these purposes, and excludes from that definition insurance on automobile or farm risks. Existing law authorizes the governing committee of the association to establish separate classifications of written premiums for the purpose of equitable distribution of basic property insurance, but prohibits those classifications from including premiums from automobile or farm risks. This bill would instead exclude insurance on automobile risks, commercial agricultural commodities or livestock, or equipment used to cultivate or transport agricultural commodities or livestock from the definition of "basic property insurance," and would require the association, within 90 days of the bill's operative date, to file a new or amended rate application with the Insurance Commissioner consistent with these exclusions. The bill would prohibit the governing committee from including premiums from automobile risks, commercial agricultural commodities or livestock, or equipment used to cultivate or transport agricultural commodities or livestock from the above-described separate classifications. This bill would declare that it is to take effect immediately as an urgency statute.