SACRAMENTO, California — A bill meant to help stabilize California’s troubled insurance market has key early support as wildfires continue to cause devastation in and around Los Angeles.

The measure, introduced by Democratic Assembly members Lisa Calderon and David Alvarez, provides a financial backup plan for the state’s insurer of last resort in the event that it doesn’t have enough money to cover claims — a possibility that was of deep concern even before the ongoing fires.

“The bill is about protecting homeowners and families across the state,” said Calderon, who represents the Whittier area.

It’s still unclear how quickly the Legislature will vote on the measure, but Alvarez said the pressure is on for lawmakers to take action.

What will the bill do?

Assembly Bill 226 would allow the California FAIR Plan to request financial support from a state-created bank to help pay off claims, as long as the plan is approved to do so by the insurance commissioner.

The FAIR Plan provides residents a way to get fire insurance for their homes when they can’t find it otherwise. It was created by state lawmakers in the 1960s, but is funded by insurance companies who do business in California.

The number of FAIR Plan policyholders has exploded in recent years as large insurance companies have paused taking on new business and decided not to renew huge numbers of homes. As of September, the plan covered almost 452,000 homes, more than double what it insured four years earlier.

The more properties the FAIR Plan covers, the greater liability it is likely to have in a major fire. And it doesn’t have a huge cushion. As of Friday, the plan reported having $377 million available to pay claims, according to Department of Insurance spokesperson Michael Soller.

While it will take time to determine how much the recent fires will cost the FAIR Plan, the amount could be substantial. In September, the reported having more than $5 billion worth of exposure in the Pacific Palisades area alone.

Along with cash reserves, the FAIR Plan also has its own insurance. But if outstanding claims are too much, it can ask companies to help cover the remainder. If companies must do so quickly, it could lead them to have greater financial instability and ultimately restrict and drop more business in the state.

“We need to find all possible pathways to ensure stability for the FAIR Plan for those folks who are on that and those who are not because we’re kind of all in this boat together,” said Alvarez, who represents the San Diego area. “If we don’t have carriers stay in the market then it becomes much more precarious than it already is.”

This proposal would allow the FAIR Plan to use loans, bonds or lines of credit to help cover the initial cost, which would allow companies more time to help cover the claims.

“We’re trying to give them a couple extra tools,” Calderon said, “in case they need it.”

What are its chances of passing?

The bill has accomplished what few insurance policies do: Unite industry groups and the advocacy organization Consumer Watchdog.

Consumer Watchdog isn’t afraid to lob criticism about insurance policies it doesn’t like and frequently challenges efforts from companies to raise their rates. On this matter, though, it is aligned with trade groups.

“We think it’s a good first step,” said Carmen Balber, Consumer Watchdog’s executive director.

Mark Sektnan, a lobbyist for the American Property Casualty Insurance Association, said the trade group is in support of the bill. The California Building Industry Association said the measure was needed urgently to “address the insurance and related housing crisis.”

Katherine Lynch, a FAIR Plan spokesperson, said Monday the association had not taken a position on the proposal but that it appreciated the support of lawmakers.

Insurance Commissioner Ricardo Lara wants the bill to pass saying it was “critical to strengthening the FAIR Plan as a vital safety net for all Californians” in a letter to Calderon and Alvarez.

The bill’s language came from a measure Alvarez introduced last year, Assembly Bill 2996, which passed the Assembly 72-0 and went through several committees before it died in the Senate in August. Alvarez said he doesn’t know what caused the bill to stall.

He was already planning to re-introduce the measure this year, but the recent fires sped up that timeline. Alvarez said Assembly Speaker Robert Rivas, D-Salinas, pushed for bringing it forward now.

“There are a lot of things we must do in order to make sure people who have been impacted by this get the support and the help that they deserve,” Alvarez said. “And this is one of those pieces.”

How quickly can it be voted on?

Under normal circumstances, AB 226 would need to be in print for 30 days, pass through committees and be approved by the full Assembly and Senate before going to Gov. Gavin Newson’s desk. That can take months.

But veteran lobbyist Chris Micheli said lawmakers can speed the process up.

“If they want to move it quickly, they can jam it through in a couple of weeks,” he said.

Lawmakers also have another tool: They can introduce the measure as part of an ongoing special session. It was originally supposed to be a time for bills that relate to California’s response to the incoming administration of President-elect Donald Trump. But Newsom on Monday said it can now include bills in response to the recent wildfires.

Chris Jonsmyr, a spokesperson for Alvarez, said Wednesday that staff were still exploring the possibility of introducing the proposal as part of the special session.

“If it means that the bill can pass faster,” Jonsmyr said, “then we will move in that direction.”

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