California’s backup home insurance provider will be able to secure loans and other financial aid to help pay for claims under a bill signed Thursday by Gov. Gavin Newsom.

The California FAIR Plan is a state-created insurer of last resort that is funded by insurance companies who sell policies in the state. It provides fire coverage to residents who can’t find it otherwise.

Assembly Bill 226 will allow the plan to use loans, lines of credit and bonds to help pay for claims in the event of large losses from major wildfires. It goes into effect immediately.

The plan has seen rapid growth in recent years as California’s insurance market has deteriorated, with companies pulling back business in the state due to rising risks from climate change, losses caused by major wildfires and other factors.

As of June, the plan had 590,642 residential policies in place, more than double the total it had just three years earlier. That rapid increase has raised concerns about its financial health, particularly in the event of a major wildfire.

Some of those fears were confirmed earlier this year after the devastating Los Angeles-area fires. In response to a large number of claims, and after drawing on its own insurance, the plan was allowed to seek $1 billion from the companies that fund it. That type of urgent request hadn’t occurred for over 30 years, and at least half of the money could ultimately be paid for by policyholders of the companies.

“The kinds of climate-fueled firestorms like we saw in January will only continue to worsen over time,” Newsom said in a statement Thursday. “That’s why we’re taking action now to continue strengthening California’s insurance market to be more resilient in the face of the climate crisis.”

The fair access to insurance requirements plan was created in the 1960s. It is not a state agency.

Newsom signed other bills Thursday that relate to the plan.

•One bill will require it to come up with an automatic payment system.

•Another attempts to clarify that manufactured and mobile homes are eligible for basic property insurance.

•A third will require top legislative leaders to serve as nonvoting members of the plan’s governing committee.

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