CA AB226

Authorizes the California FAIR Plan Association, with Insurance Commissioner approval, to request the California Infrastructure and Economic Development Bank to issue bonds to finance claims costs, increase liquidity and claims-paying capacity, and refund previously issued bonds

Permits the association to enter into loan agreements, lines of credit, and other financing arrangements with the bank, with bond proceeds also available for reserves, capitalized interest, credit enhancement, and issuance costs

Requires the association to assess its member insurers if it cannot meet repayment obligations on approved bonds, loans, or lines of credit, ensuring full and timely payment of all financial obligations

Creates a statutory lien on association collateral (premiums, revenues, receivables, assessments, and other assets) to secure bonds and credit agreements, effective without need for filing or recordation

Declared an urgency statute taking effect immediately due to California's property insurance availability crisis and the growing number of policies in the FAIR Plan, which needs access to financial tools to prepare for catastrophic wildfire events