Our Mission

To provide owners and tenants of individual residences, small business owners, farmers and co-op residents an opportunity to purchase limited property or homeowners insurance when they are unable to do so in the voluntary market

 Our Strategy

In fulfilling out mission we will:

• Inform the industry and the public of the existence of the FAIR Plan and it's products;

• Provide courteous and professional service in a cost effective manner;

• Utilize standard insurance policy forms;

• Consider affordability for the public and competitiveness with the voluntary market in pricing and products;

• Exercise financial responsibility to the industry in setting our prices and developing a budget;

• Encourage fire prevention and the improvement of property; and

• Educate insureds and the public with regard to availability of insurance coverage in the voluntary market.

 History of the MN FAIR Plan

The MN FAIR Plan was created by an act of the MN Legislature (MN Statute 65.A.31 effective August 1, 1968).  FAIR stands for Fair Access to Insurance Requirements.  The adoption of the MN Fair Plan Act was in response to the passage of federal legislation known as "The Urban Property Protection and Reinsurance Act".  This legislation made riot reinsurance available to insurers of property in states with established FAIR Plans.  Minnesota's initial FAIR Plan legislation restricted our operation to urban areas.  In 1986, the FAIR Plan legislation was amended to expand our operation statewide. 

All of the policies we sell are non-replacement cost coverage.  We are one of 36 FAIR plans in operation in the United States.

The FAIR Plan is financed by premiums collected from our policyholders and when necessary, by assessment of the private industry.  Our assessment base is the total premium collected in the State for the type coverage that we provide (Fire, Allied Lines, Homeowners, Commercial Fire and Farm Fire).

As of December 31, 2004, the FAIR Plan insured 11,700 properties.  Roughly 55% of our policies are Homeowners (HO8, HO6, and HO4) and 40% are Dwelling Fire 1 (DP-1).  Farm Fire, Mobile Home Fire and Commercial Fire policies make up the remaining 5% of our total policy count.

The FAIR Plan only insures real property located within the State of Minnesota.  Applicants must first be rejected, cancelled or non-renewed by a private insurer to qualify for FAIR Plan coverage.  Our goal is to return every FAIR Plan customer to the private insurance market as soon as possible. 

The Governing Board

The Governing Board of the MN FAIR Plan is made up of nine (9) representatives.  Five Members of the Board represent the Member Companies of the FAIR Plan, and are selected on an annual basis by the Members. 

If your company is interested in serving as a Private Member representative, please go to our Member Company Section for further information.

Four Members of the Board are appointed by the Commissioner of Commerce to represent the public.  Public Members serve for two year terms, and can be reappointed for subsequent terms at the discretion of the Commissioner.  Public Member selections are made every odd numbered year.  Public Member terms take effect on July 1st.  If you are interested in serving as a Public Member of the Governing Board, you must go through the open appointment process.  Further details and instructions can be found at www.sos.state.mn.us/openapp/.

 MN FAIR Plan Governing Board Roster