The executive order lays out a series of directives for Commissioner of Insurance Ricardo Lara:
1. To expand the range of coverage options available to consumers, with a particular focus on underserved areas, while ensuring the long-term availability of homeowners and commercial property insurance.
2. To enhance the efficiency and transparency of the rate approval process, with a specific emphasis on fostering a competitive and robust insurance marketplace.
3. To ensure the financial stability of the FAIR Plan, safeguarding existing policyholders and promoting resilience in the face of climate change.
4. To instruct the Department of Finance to collaborate with the California Department of Insurance in supporting the rulemaking process and expediting the implementation of potential regulations.
California voters originally implemented Proposition 103 in 1988, which established a comprehensive set of consumer-centric safeguards governing insurance rates within the state. These unique protections, coupled with recent rapid shifts in the climate, have led to noteworthy instances of major insurers either exiting the state or suspending the acceptance of new customers. As a result, there has been consideration of altering insurance regulations to attract customers who might otherwise remain uninsured.