Property and Casualty Insurance Practice Exam 2025 – All-in-One Guide to Achieve Exam Success!

The major purpose of FAIR Plans (Fair Access to Insurance Requirements Plans) is to make insurance available to previously uninsurable risks. These programs are established in many states to provide property insurance to individuals and businesses that cannot obtain coverage through the standard market due to their location or risk profile. Often, these risks are in areas prone to natural disasters or other hazardous conditions that would typically render them uninsurable.

FAIR Plans help ensure that consumers have access to basic property insurance coverage, promoting fairness in the insurance market. They serve as a safety net for property owners who are unable to find coverage elsewhere, thereby helping to stabilize communities and protect property values.

This focus on accessibility distinguishes FAIR Plans from other potential purposes of insurance security measures, such as adjusting premiums or denying coverage based on risk factors. Instead of limiting or charging more for high-risk policies, FAIR Plans extend coverage options to those who would otherwise face challenges in finding any type of insurance.