The Oregon FAIR Plan Association was created by the Oregon Legislature in 1971. (See Oregon Revised Statutes relating to Essential Property Insurance – ORS 735.005 to 735.145.) While we were created by the legislature, we are not directly part of the State of Oregon. We are a non-profit association supported entirely by our member companies. Every insurance company licensed to write property insurance in Oregon is required to be a member of the association. All monies belong to the members (profits or losses) and we receive no tax dollars from the state or federal government. The OFPA is entirely supported by the insurance industry.
We operate exactly like a small insurance company, writing only property insurance for dwellings, commercial property and farms. We issue all policies in our office on our own OFPA paper. We underwrite all applications in our office using our own staff.
We handle, investigate and adjust all reported losses using independent local adjusters. All covered losses are paid from our office. We also use independent local inspection companies to inspect all new business to ascertain if the applicant meets our minimum underwriting requirements.
In January 2002, the OFPA changed from a Single Service Provider format to a Syndicate style of operation. Under the Syndicate style of operation, the insuring company is the Oregon FAIR Plan Association, and all coverage is issued using OFPA paper on the policy Declarations pages.
Each insurance company licensed to write Property Insurance in Oregon is required to be a member of the OFPA, as a condition of holding a license to operate in Oregon. All financial results, (gains or losses) are treated as reinsurance assumed by the member companies of the OFPA.