Final answer:
The statement is false; houses in designated brush fire areas can still get coverage through the California FAIR Plan, an insurance pool designed to provide insurance for high-risk properties.
Step-by-step explanation:
The statement, 'A house that falls in a designated brush fire area could not obtain insurance through the fair plan', is False. The California FAIR Plan is an insurance pool established to assure the availability of basic property insurance to people who own insurable property in the state of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market.
Houses in designated brush fire areas, which are at a higher risk for wildfires, can still obtain insurance through the FAIR Plan when they cannot find coverage elsewhere. Grasslands and forested areas are particularly susceptible to wildfires, and insurance is necessary to protect property owners from the financial consequences of such disasters.