You may recall the riots of the 1960's. As a result of the catastrophic losses in inner
cities across the country, reinsurers were unable to provide insurance coverage for inner
city properties. So, many property owners were left without insurance. Consequently, loans
that would normally be available for property renovation and improvement were no longer
available. Mortgages became difficult if not impossible to secure on inner city property.
When property sustained losses, repairs couldn't be made.
President Johnson encouraged the formation of the "Hughes Panel" to study this problem and
make recommendations for possible solutions. As a result of their findings, the Federal Riot
Reinsurance Act was passed by Congress and signed into law on August 1, 1968. Essentially,
this assured that the Federal Government would provide reinsurance to companies for
catastrophic loss by riot in those states, which established a FAIR Plan. FAIR is an acronym
representing Fair Access to Insurance Requirements. The companies would, of course, have to
pay a premium for this reinsurance. FAIR plans would intend to provide essential insurance
(fire, extended coverage, and, in some states vandalism) for properties which were not eligible
for coverage with standard insurance companies.
Subsequent to the passage of the Federal Law, the Ohio Department of Insurance asked that the
Ohio Insurance Institute formulate a FAIR Plan for Ohio. The Ohio FAIR Plan Underwriting Association
(OFP) was created under the Ohio Revised Code (Section 3929.41 et seq.) in November of 1968. The
statute provided for OFP’s issuance of Basic Property Insurance (fire, extended coverage-windstorm,
hail, aircraft damage, riot, vehicle damage, explosion, and smoke, and vandalism and malicious
mischief) for eligible property at "standard" rates. This coverage was to be provided through
a "pool" comprised of all property insurers writing coverage in the State of Ohio. These insurers
are the "members" of the Association (OFP) and participate in the losses (and profits) of OFP in
direct proportion to their premium volume of business in the state.
Initially, OFP coverage was available only in the 10 major urban areas of Ohio-Cleveland, Cincinnati,
Columbus, Akron, Canton, Youngstown, Dayton, Toledo, Lima, and Springfield. By 1977, the entire state
of Ohio was designated as eligible for OFP coverage. Since 1981, OFP has had Homeowners Insurance
available for 1 and/or 2 family owner-occupied properties. The availability of Homeowners coverage
provided the opportunity for theft and liability coverage for these properties. Since 1987, a Crime
Insurance Program has been available through OFP for qualifying residential and commercial property.
The FAIR Plan is committed to providing quality service to the insurance industry, the insuring
public and its agents, and the Board of the FAIR Plan and its committees. The service contemplates
timely processing, as well as professional and courteous handling of matters. These activities
must be accomplished within the framework established by ORC 3929.41 et seq., Administrative Rule
of the Ohio Department of Insurance (INS 3901-1-18), and the Underwriting Guidelines.