A consumer group has filed a lawsuit to block California insurers from passing $500 million in surcharges on to policyholders to help cover outlays resulting from the devastating Los Angeles County fires in January.
The April 14 lawsuit, filed in Los Angeles Superior Court by Consumer Watchdog, seeks to halt the state Insurance Commissioner’s approval of the surcharges, which companies hope to impose to recoup the money they had to provide California FAIR Plan, the state’s insurer of last resort.
California’s FAIR Plan (Fair Access to Insurance Requirements) provides basic coverage for homeowners unable to find fire insurance in the private marketplace. A private association created by state law, FAIR Plan requires all insurers licensed to operate in California to financially support its fire insurance pool….