California Proposes FAIR Plan Transparency Bill After CBS News Investigation

State Insurance Commissioner backs legislation to open up meetings, financials, and operations of the state's insurer of last resort.

Feb. 3, 2026 at 8:23pm

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A year after a CBS News California investigation exposed concerning secrecy within the California FAIR Plan, the state's Insurance Commissioner is backing new legislation to require more accountability and transparency from the state's insurance of last resort. The proposed "Make It FAIR Act" would mandate public access to FAIR Plan governing committee meetings and documents, create an annual public report on the plan's finances and operations, and force the FAIR Plan to make sweeping changes to improve customer service and prepare for future disasters.

Why it matters

The FAIR Plan is meant to be California's insurance of last resort, but has become the only option for many homeowners, even in low-risk areas. However, as a nonprofit association of private insurers, the FAIR Plan's records and meetings have historically been shielded from public view. This lack of transparency is concerning since regular insurance customers are on the hook for the FAIR Plan's debt, but have no ability to oversee its finances or operations.

The details

The proposed legislation would require the FAIR Plan to offer a more comprehensive homeowners insurance policy, hire more staff to speed up claims and complaints, improve programs to move policyholders back into the regular insurance market, conduct formal assessments of its financial exposure to future disasters, and adopt a long-term strategic plan. The bill is a response to a recent Department of Insurance examination that found the FAIR Plan failed to implement over a dozen key recommendations related to governance, financial oversight, and consumer protections.

  • In February 2026, California Insurance Commissioner Ricardo Lara announced the proposed "Make It FAIR Act" legislation.
  • A year prior, in 2025, a CBS News California investigation exposed concerning secrecy within the California FAIR Plan.

The players

Ricardo Lara

The California Insurance Commissioner who is backing the proposed transparency legislation for the FAIR Plan.

Dave Jones

A former California Insurance Commissioner who said the public should be able to see the FAIR Plan's financial statements since regular insurance customers are on the hook for its debt.

Helen Meisel

A Pacific Palisades homeowner who was forced to switch to the more expensive and less comprehensive FAIR Plan coverage after wildfires in her neighborhood.

Sarah

A first-time homeowner whose home survived a wildfire, but felt the FAIR Plan left her feeling like she would have been better off if it had burned down.

Ken and Lisa

A couple who were denied insurance coverage and couldn't buy their dream home in a low-fire-risk area because they were forced to rely on the FAIR Plan.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The proposed "Make It FAIR Act" legislation will now need to make its way through the California legislature, where it will likely face opposition from the insurance industry. The CBS News California team says they will continue to cover the process and expose what happens behind closed doors as the bill progresses.

The takeaway

This case highlights the need for greater transparency and accountability around the California FAIR Plan, which has become the only insurance option for many homeowners but operates in secrecy. The proposed legislation is an important step towards ensuring the public has oversight of the FAIR Plan's finances, governance, and disaster preparedness efforts, given that regular insurance customers are ultimately responsible for its debt.