What does the acronym FAIR represent in the context of insurance?

The acronym FAIR stands for Fair Access to Insurance Requirements. This term is commonly associated with state-sponsored programs that aim to provide equitable access to property insurance, particularly in areas where standard insurance coverage may be difficult to obtain due to high risk. The FAIR plan was designed to ensure that property owners, especially in communities that are prone to certain perils (like natural disasters), can still access insurance products.

In this context, it serves as a mechanism to protect homeowners and enable them to have insurance coverage that might otherwise be unavailable in the private market. The program helps to stabilize the insurance market in high-risk areas by spreading the risk, thus ensuring that everyone has the opportunity to obtain necessary coverage.