Fair Plan
Definition of "Fair plan"
Same as term Fair access to Insurance Requirements: insurance that grew out of the urban demonstrations and riots of the 1960s. Because of the deteriorated social and economic circumstances in these areas, it became impossible for many business owners and homeowners to purchase property insurance. As a result, the federal government established the fair plans based on the stop loss reinsurance method. If a business owner or homeowner cannot purchase property insurance through conventional means, application can be made through an agent who represents an insurance company participating in the FAIR plan. If the property is acceptable to the company, insurance will be provided. If the property is deficient, improvements are suggested, and upon compliance the policy is issued.
Popular Insurance Terms
Over a long period of time, the average loss an individual, individuals, or an organization can expect to incur from a particular exposure. ...
Use of new rate structures by an insurance company without first obtaining approval of a State Insurance Department. ...
Treaty adopted by most major countries to determine adjustment for general average in ocean marine insurance. ...
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Rate not subsequently adjusted. The rate stays in effect regardless of an insured's subsequent loss record. ...
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Describing automobile accidents that are considered to be the results of the negligent acts of the insured driver and are included in the driving record of that insured. ...
property insurer that distributes its products through a direct selling system. Traditionally, insurers often were known as direct writers if they used either a direct selling system or an ...
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