Garamendi

I.

Introduction

Appellants are three affiliated insurance companies—Ohio Casualty Insurance Company (Ohio Casualty), West American Insurance Company (West American), and American Fire and Casualty Company (American Fire). They appeal from the superior court’s denial of their petition for writ of administrative mandamus or writ of mandate (the petition). The petition challenged an order of the California Insurance Commissioner (the Commissioner) requiring appellants to pay certain assessments imposed by California’s FAIR Plan Association (Fair Access to Insurance Requirements; Ins. Code, § 10090 et seq. (FAIR Plan)) for 1993 and 1994, totaling over $3 million.

Established in 1968, the FAIR Plan obligates all real and personal property insurers to establish a program to apportion among themselves the responsibility for providing basic property insurance for those who, after diligent efforts, are unable to obtain insurance through normal market channels. (§§ 10093, subd. (a), 10094.) By statute, the cost of writing and issuing FAIR Plan policies, including profits and losses, are borne proportionately by California property insurers based on the amount of business each…