California Insurance Commissioner Ricardo Lara is ordering the California FAIR Plan Association to increase coverage limits for businesses that have turned to the insurer of last resort for commercial property insurance.
As part of this decision, Lara amended the FAIR Plan’s plan of operations. Under the changes, the FAIR Plan’s Division I Commercial Property Program would raise its combined coverage limits from $4.5 million to $8.4 million. Likewise, FAIR Plan’s Division II Businessowners Program limits would also be raised from $3.6 million to $7.2 million.
The California Department of Insurance noted in a statement that