Question

What is the purpose of the California Fair Access to Insurance Requirements program?

1. to provide superior coverage for California property owners
2. to ensure comparable rates between insurance companies
3. to manage taxpayer monies set aside to subsidize insurance for the poor
4. to help property owners who are unable to obtain coverage through the private sector on their own

Answer 1

The correct answer is option 4. The purpose of the California Fair Access to Insurance Requirements (FAIR) program is to help property owners who are unable to obtain coverage through the private sector on their own.

Step-by-step explanation:

What is the purpose of the California Fair Access to Insurance Requirements program?

The purpose of the California Fair Access to Insurance Requirements (FAIR) program is option 4, to help property owners who are unable to obtain coverage through the private sector on their own.

The FAIR program is designed to provide insurance coverage to those who have difficulty obtaining it in the private sector, such as high-risk properties or individuals with limited income. It helps ensure that property owners have access to insurance protection, even if they are unable to get coverage from traditional insurance companies.

The program helps to address the issue of adverse selection in the insurance market, where insurance companies avoid selling coverage to higher-risk individuals. By providing an alternative option for those who cannot get coverage through the private sector, the FAIR program helps to promote fair and equitable access to insurance for property owners in California.