Who funds the Missouri FAIR Plan?
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The Missouri FAIR Plan is not funded by general state tax dollars. It is an association established under Missouri law whose members are the private insurance companies licensed to write property insurance in the state. Claims and operating costs are paid primarily from the premiums its policyholders pay, along with reinsurance. If losses exceed the plan's resources, the shortfall is generally shared by member insurers through assessments based on their share of the Missouri property insurance market. Compare private-market, specialty-market, and residual-market options with a licensed insurance agent.