California Code, Insurance Code - INS § 10100.2
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(a)(1) Rates for the FAIR Plan shall not be excessive, inadequate, or unfairly discriminatory, and shall be actuarially sound so that premiums are adequate to cover expected losses, expenses and taxes, and shall reflect investment income of the plan. If the plan returns premiums to members annually, the rates shall not include any component relating to surplus enhancements.
(2) If the FAIR Plan policy of a property owner would be subject to a brush surcharge solely because of an adjacent property owner's failure to comply with applicable laws, ordinances, and regulations regarding brush clearance requirements, the surcharge shall instead be imposed on the policy of the adjacent property owner if the adjacent property is also insured through the FAIR Plan.
(b) Rates for a policy of earthquake property insurance issued by the association shall be established based on the best available scientific information for assessing the risk of earthquake loss. Factors that the association shall consider in adopting rates include, but are not limited to, the following:
(1) Location of the insured property and its proximity to earthquake faults and to other geological factors affecting the risk of earthquake.
(2) The soil type upon which the insured dwelling is built.
(3) Construction type of the insured dwelling.
(4) The presence of earthquake hazard reduction factors as defined in Section 10089.2 .
(c) Notwithstanding Section 10097 , all information considered by the association in establishing rates shall be public records.
(d) The classification system established by the association for policies of earthquake property insurance shall not be adjusted or tempered in any manner to provide rates lower than are justified for classifications presenting a high risk of loss, or higher than are justified for classifications presenting a low risk of loss.
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