It’s statutory name is the North Carolina Joint Underwriting Association, and it’s an association which, as agents for the member companies, functions like an insurance company making basic and broad property insurance available to people who are not able to buy it through the standard insurance markets. Created in 1969, the Plan’s name (FAIR) stands for Fair Access to Insurance Requirements.

The FAIR Plan covers the entire state except those barrier islands adjacent to the Atlantic Ocean. A separate Underwriting Association (Beach Plan) provides coverage for that area and for windstorm & hail only and Homeowner Insurance policies in the eighteen (18) coastal counties.

Who operates the FAIR Plan?

A fourteen (14) member Board of Directors (including seven [7] representatives from the insurance industry, four [4] licensed agents and three [3] from the general public) acts as the FAIR Plan policymaking body. The Plan is managed by a staff of professional insurance people independent of any single insurance company. All property and casualty insurance companies that do business in North Carolina participate in funding the Plan and sharing any losses or profits. The FAIR Plan is not a facility of the North Carolina State government, but its operation is subject to review by the North Carolina Commissioner of Insurance.
 

Almost anyone can. However, most people wanting to buy insurance on their properties can sometimes get broader coverage, often at a better price, in the regular competitive market.  As a matter of fact, it is recommended that an applicant try to buy insurance in the standard market before coming to the Plan for coverage.  If they apply and their property meets basic fire, loss prevention and reasonable underwriting standards, the Plan will offer coverage.

Does this mean the FAIR Plan will insure any property?

There are reasonable standards, which must be met. These are basic things, which most people would have done already to make their properties safe and to eliminate substandard physical conditions. An inspection by independent vendor or the producer of the property is required for every policy issued. If that inspection reveals hazardous conditions, the property owner is told what they are and given time to correct them. Once that is done, coverage may be provided.

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