Which types of insurance companies are members of the NJ Insurance Underwriting Association (FAIR Plan)?

• A. Companies, other than stock companies, writing property insurance in the state
• B. Stock companies only
• C. Mutual insurance companies only
• D. Reinsurance pools only

Answer: (A)

The NJ FAIR Plan is made up of insurers that actually write property insurance in New Jersey, but only those that are non‑stock. This plan exists to provide access to basic property coverage for risks that can’t get coverage in the regular market, and stock companies don’t participate in it since they operate in the standard market. So, members are companies other than stock companies that write property insurance in the state, including mutual and other non‑stock carriers. Reinsurance pools are separate arrangements and not the same as the FAIR Plan membership.