California’s state insurance plan of last resort, a home insurance safety net, needs $1 billion in additional funding to pay for claims following the Los Angeles County wildfires in January, Insurance Commissioner Ricardo Lara announced Feb. 11.
The extra funding would allow the Fair Access to Insurance Requirements (FAIR) Plan to hire more staff needed to process and pay wildfire claims fairly, fully, and quickly, according to a statement. The plan would be required to use all available funds, including reserves and reinsurance funds.
“I took this necessary consumer protection action will one goal in mind: the FAIR Plan must pay claims just like any other insurance company,” Lara said in the statement….