SACRAMENTO – California Insurance Commissioner Dave Jones said Thursday that he’s taken action to end the California FAIR Plan’s moratorium on new fire insurance coverage.

"This morning I issued a cease and desist order requiring the California FAIR Plan to terminate immediately the moratorium it initiated on writing new fire insurance coverage in wildfire-impacted areas and ordering the FAIR Plan to make its fire insurance products available to all eligible Californians in keeping with its statutorily mandated purpose,” Jones said Thursday. “I've been advised the FAIR Plan, after being notified of the cease and desist, agreed to lift its moratorium on writing new policies.”

Jones said he originally took this action after receiving information that the FAIR Plan imposed a moratorium on writing new policies in current active fire zones across California.

The FAIR Plan was established as the fire insurer of last resort to make certain California property owners have access to fire insurance coverage, Jones said.

Jones said there is no statutory allowance for the FAIR Plan to discontinue writing fire insurance policies for applicants anywhere in the state who need fire insurance coverage to protect themselves from financial loss.

While the FAIR Plan is required to write coverage, Jones said any individuals or entities who attempt to commit insurance fraud by placing FAIR Plan or any other insurance coverage on damaged property to cover losses that already occurred will be investigated and prosecuted.

If anyone is denied the opportunity to purchase a FAIR plan policy, Jones said they should contact his agency’s consumer hotline at 800-927-4357.