California Legislation Would Allow Bonds and Loans to Support Struggling Insurer

AB 226 is an attempt to keep the state’s insurer-of-last-resort solvent after the Los Angeles wildfires.

A State Farm insurance company sign sits amid the rubble of a building destroyed by the Palisades Fire on Sunset Boulevard in the Pacific Palisades neighborhood of Los Angeles on January 16, 2025. Tens of thousands of people ordered to flee their homes as wildfires tore through Los Angeles were told on January 16 they would not be allowed back for at least a week, with fears over electrocution, landslides and exposure to toxic materials. (Photo by Frederic J. BROWN / AFP) Photo by FREDERIC J. BROWN/AFP via Getty Images

A California bill would allow the state-mandated FAIR Plan to request bonds and loans so that the insurer can cover damages amid the growing wildfire risk in the state.

Assembly Bill 226, also known as the FAIR Plan Stabilization Act, passed the Assembly in a 77–0 vote in April and will be heard in the state Senate Business, Professions and Economic Development Committee on June 9.