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Bill

AB 290

California FAIR Plan Association: automatic payments.

2025-2026 Regular Session Introduced by Dawn Addis and 4 co-sponsors

AB 290 permits California's FAIR Plan to establish automatic premium payment systems, streamlining billing for the state's insurer-of-last-resort serving 1.4M uninsurable homeowners.

Chaptered by Secretary of State - Chapter 475, Statutes of 2025.
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Bill Summary · AB 290

Legislative bill overview

AB 290 authorizes the California FAIR Plan Association to establish automatic payment systems for insurance premiums. The bill streamlines administrative processes by allowing policyholders to set up recurring payments for their property insurance policies issued through California's insurer of last resort program.

Why is this important

The FAIR Plan serves approximately 1.4 million Californians who cannot obtain homeowners insurance in the traditional market, often due to wildfire risk or other factors. Enabling automatic payments reduces administrative burden, decreases payment processing costs, and may improve payment compliance rates—ultimately helping stabilize this critical safety-net program during California's insurance market crisis.

Potential points of contention

  • Consumer privacy and data security: Automatic payment systems require storing banking information; concerns exist about data breach vulnerability and how consumer information is protected
  • Opt-out mechanisms: Questions about whether consumers can easily cancel automatic payments and whether safeguards prevent unauthorized charges
  • Cost pass-through: Uncertainty about whether administrative savings translate to lower premiums for policyholders or benefit insurers' finances instead

Compiled from official sources — confirm details with the bill’s official record.

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