1. (1) The board shall establish the FAIR plan. The FAIR plan must satisfy the requirements of this part 18 and any rules promulgated by the commissioner pursuant to this part 18.

2. (2) Rates for the FAIR plan must:

   1. (a) Not be excessive, inadequate, or unfairly discriminatory;
   2. (b) Be actuarially sound so that revenue generated from premiums is adequate to pay for expected losses, expenses, and taxes;
   3. (c) Reflect the investment income of the plan; and
   4. (d) Reflect the cost of reinsurance or other capital risk transfer markets.
3. (3) The FAIR plan is subject to the rate filing and review requirements in this article 4.

Source: L. 2023: Entire part added, (HB 23-1288), ch. 170, p. 834, § 1, effective August 7.