FAIR Plans (now in operation in 28 States, the District of Columbia and Puerto Rico) are the outgrowth of the national emergency created by three years of rioting in American cities, beginning with the Watts outbreak in 1965. When the rioting of the 1960s suddenly mushroomed to disastrous proportions, the companies found themselves in the position of having to pay losses in excess of $100 million, on which they had collected no specific premium. Although the companies paid these losses, their capacity was severely taxed and their normal riot reinsurance market had dried up. It became obvious that emergency revisions of underwriting and reinsurance procedures were necessary for the future protection of urban property and urban existence
A national advisory panel appointed by President Johnson warned that the revitalization of the nation’s cities would be impossible without fair access to property insurance. It then set forth its recommendations to provide federal riot reinsurance to companies writing in riot prone states if FAIR Plans (Fair Access to Insurance Requirements) were established to resolve the availability of insurance protection in urban areas.
Congress enacted the Urban Property Protection and Reinsurance Act of 1968, which authorized the establishment of FAIR Plans and made available federal riot reinsurance to the companies. The Rhode Island legislature responded with the enactment of Rhode Island Regulation XV Basic Property Insurance Inspection and Placement Program, which formed the Rhode Island Joint Reinsurance Association under regulatory supervision of the Rhode Island Insurance Department.
Title 27, Chapter 27-33 – Federal Riot Reinsurance Reimbursement Fund is the Statutory Authority Document that established the Rhode Island Joint Reinsurance Association (RIJRA).
Insurance Regulation 15 – Department of Business Regulation (DBR) – Regulation which provides for the overall operational procedures of the Rhode Island Joint Reinsurance Association as approved by the Commissioner of Insurance.
Articles of Agreement – The Articles of Agreement define the rights and responsibilities of member insurance companies required to be members of RIJRA by the Laws of the State of Rhode Island.