What is the purpose of the FAIR Plan?

The purpose of the FAIR Plan, which stands for Fair Access to Insurance Requirements, is to provide access to basic property insurance for individuals or properties that are unable to obtain coverage through the standard insurance market due to high risk. This program is particularly important for those who live in areas prone to natural disasters or have properties that present a higher risk for insurers. By offering a mechanism for these individuals to secure basic coverage, the FAIR Plan helps to ensure that homeowners and businesses have the necessary protection against property loss or damage, promoting stability and security in the community.

In contrast, the other options focus on areas not covered by the FAIR Plan. Offering low-cost health insurance is unrelated to the primary intent of the FAIR Plan, which specifically addresses property insurance issues. Similarly, while providing access to insurance for high-risk drivers is important in the insurance industry, it involves different programs, such as assigned risk plans rather than the FAIR Plan. Lastly, promoting insurance education is a valuable endeavor but does not align with the core function of the FAIR Plan, which is focused on providing basic property insurance coverage.