Which of the following statements concerning FAIR plans is (are)true?
I.All property is eligible for coverage regardless of physical condition.
II.Losses and expenses are shared by insurers who participate in a plan.

Question

Quizplus · Accepted Answer

Statement I is not true. FAIR plans typically only provide coverage for high-risk properties that have been denied coverage in the standard market due to their condition, location, or other factors that make them difficult to insure.

Statement II is true. Insurers who participate in a FAIR plan share the losses and expenses associated with insuring high-risk properties, spreading the risk of loss among a larger pool of insurers.

Which of the Following Statements Concerning FAIR Plans Is (Are)true