Around the PIA Western Alliance States – Week of July 7, 2025

California — Commissioner Lara appoints members to new Smoke Claims and Remediation Task Force: In response to the smoke damage caused by wildfires across California, including the recent Palisades and Eaton fires, Insurance Commissioner Ricardo Lara has appointed members to his new Smoke Claims and Remediation Task Force. Led by the California Department of Insurance, the Task Force includes state and local public health experts, fire safety experts, smoke remediation specialists, industrial hygienists, consumer advocates, and representatives from the insurance industry. Together, they will recommend science-based insurance standards and best practices for safely returning to and restoring homes and personal property.

“Wildfire smoke is fundamentally a health and safety issue that must be addressed by experts who understand the challenges involved. I am entrusting these leaders with recommending where standards are needed and determining which state agencies, beyond my Department, should be involved in their implementation and enforcement,” said Commissioner Lara. “As smoke damage becomes an increasingly critical problem, it requires collaboration among government, businesses, and consumers to find solutions. California must take the lead in creating effective strategies to assist consumers in managing the aftermath of wildfire disasters.”

The Los Angeles wildfires are considered the state’s largest urban disaster, underscoring the urgent need for new policies and standards grounded in public health, science, and practical experience in managing smoke damage claims. Without clear statewide protocols, many consumers report having their claims denied without thorough investigation or being compelled to return to homes they feel are unsafe, especially as smoke impacts extend beyond the immediate fire areas to downwind neighborhoods.

Moreover, the Department is currently investigating hundreds of smoke damage-related complaints from wildfire survivors concerning various insurance companies and the California FAIR Plan. It is scrutinizing State Farm’s handling of thousands of claims from wildfire survivors impacted by the Palisades and Eaton wildfires, with a particular focus on smoke damage.

Commissioner Lara is also working with the National Association of Insurance Commissioners to engage with other insurance regulators facing similar smoke damage challenges in their states. The absence of consistent public health standards for smoke damage following wildfires, as seen in the 2023 Lahaina Fire in Maui, Hawaii, and the 2021 Marshall Fire in Boulder, Colorado, has resulted in confusion, delays, and inconsistent treatment of homeowners.

The Smoke Claims and Remediation Task Force will make recommendations to the Commissioner and other state leaders within months, aiming to establish standards that ensure fair treatment for consumers exposed to wildfire smoke. The Task Force will examine scientific research regarding the health impacts of smoke, soot, and ash, as well as typical smoke-related damage, to formulate reasonable standards for testing and remediation.

The Task Force members include:

Tony Cignarale, Deputy Insurance Commissioner for Consumer Services and Market Conduct at the California Department of Insurance, who will chair the Task Force

Dr. Rita Nguyen, Assistant State Public Health Officer at the California Department of Public Health

Dr. Nichole Quick, Chief Medical Advisor at the Los Angeles County Department of Public Health

Chief Frank Bigelow, Deputy Director for Community Wildfire Preparedness and Mitigation in the Office of the State Fire Marshal at the California Department of Forestry and Fire Protection (CAL FIRE)

Amy Bach, Executive Director of United Policyholders

Richard Holober, Board Treasurer for the Consumer Federation of California Education Foundation

Brad Kovar, CEO of Safeguard EnviroGroup, Inc.

Patrick Moffett, President of Blue Sky Environmental Consulting, Inc.

Kristofer Griffith, Vice President of Operations at Anderson Group International

Hamid Arabzadeh, Principal at HRA Environmental Consultants Inc.

Michelle Rosales, Director of Environmental Health Services at Forensic Analytical Consulting Services

Allison Adey, Legislative Advocate at the Personal Insurance Federation of California

Karen Collins, Vice President, Property and Environmental at the American Property Casualty Insurance Association

“Addressing and remediating soil and indoor toxicity resulting from the LA wildfires is critically imperative to getting displaced residents safely back home and restoring communities, property values and people’s sense of security,” said Amy Bach, Executive Director of United Policyholders. “I look forward to contributing the information and resources that United Policyholders curates for ‘partial loss’ wildfire survivors, and working with Task Force members to reconcile the conflicts with insurance companies that have put homeowners in a frightening and frustrating state of uncertainty.”

"From a public health perspective, CDPH applauds CDI's efforts to apply a science- and health-based approach to creating guidelines for smoke and fire damage assessments,” said Dr. Rita Nguyen, Assistant Health Officer, California Department of Public Health. “In a field and sector with a lot of unknowns, it is critical that subject matter experts take a thoughtful and evidence-based approach to protect the health of our communities as we recover and rebuild.”

The members of the Task Force are expected to meet monthly, with an ambitious timeline to deliver recommendations back to the Commissioner by early 2026. The group also plans to receive presentations from wildfire survivor groups, fire safety experts, public health specialists, and insurance industry representatives.

The Task Force is one of several initiatives Commissioner Lara is undertaking to ensure that wildfire claims are handled fairly and comprehensively. In March, he issued a formal Bulletin mandating insurers to fully investigate and pay legitimate smoke damage claims. He also directed the California FAIR Plan—the state’s insurer of last resort—to adhere to the same claims handling standards. Additionally, the Department is currently investigating the FAIR Plan regarding its handling of smoke damage claims and has announced a market conduct examination of State Farm, utilizing one of the Department’s most potent enforcement tools, to assess its management of wildfire claims, including those related to smoke damage.

Idaho — Update on DOI property insurance market data call: In response to Bulletin 25-02, the Department has received submissions from most companies, though a few companies were granted brief extensions due to extenuating circumstances and those submissions should be completed soon.

Once all data is submitted, the Department will need time to analyze and verify it for accuracy. This process will involve both Department staff and external partners.

The Department is eager to complete the analysis and we are aiming to do so within 30 days. However, that timeline depends on the quality of the data received and whether any issues arise during the review process.

The goal is to have the data and analysis finalized by August, though it is possible the process may take longer. We appreciate the cooperation of the companies in this effort.

Washington — Washington Equal Pay Law Expands: The Washington Legislature has expanded the state’s equal pay and promotion discrimination laws. They are now in effect. It now goes from just gender discrimination to these:

• Sex, marital status, sexual orientation
• Race, creed, color, age (40 and older)
• National origin, citizenship or immigration status
• Honorably discharged veteran or military status
• The presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability

Source link: Insurance Journal — https://bit.ly/45UAK6Y

Washington — Study on liability insurance for adult family homes finds market in reasonable shape: A report submitted to the Washington State Legislature (PDF 10.20MB) in late June details the state of the liability insurance market for adult family homes in Washington, finding the market to be largely sustainable but providing suggestions for increasing its appeal to insurance companies. 

Washington state Insurance Commissioner Patty Kuderer’s office (OIC) worked with Davies Actuarial, Audit & Consulting on the report, which was requested by the Legislature in the 2024 session.

Adult family homes (AFHs), as referenced in the report, are homes with licensed caregivers for up to six residents not related to the caregiver, or up to eight residents with specific approval.  These homes, which serve approximately 15% of Medicaid long-term care clients, are required by state law to maintain commercial general liability insurance and professional liability insurance.

The report analyzed data on 14,746 policies from January 2019 through September 2024, finding an annual per-bed premium of $424 and a projected overall loss ratio of 40%. That’s on the lower end of typical loss ratios, according to the report, with rates the report said “do not appear unreasonable.”

The annual per-bed premium ranged from $318 in 2019 to $473 in 2024, an increase the report said did not appear excessive based on industry information.

Given those figures, the report did not recommend a government-sponsored insurance entity as a policy option. Instead, it provided suggestions on how to make the AFH market more appealing to a wide variety of insurers.

Coverage for AFHs in Washington comes from surplus lines insurers and risk retention groups, which are non-admitted carriers that cover the risks that the traditional market cannot cover.

“Although we understand that many AFH owners are working on very tight budgets, the figures above do not appear to indicate an availability or affordability insurance crisis on the whole,” the report states. “Rather, they indicate that the insurance market perceives certain types of AFHs or their residents to present greater risk.”

The key challenges related to AFH liability insurance:

    Even small premium increases can disrupt owners’ tight budgets.

    A small number of AFHs are charged high liability insurance premiums. Approximately 5% of the policies had an annual bed rate of $900 or more, more than double the $424 average, but more than 80% of the policies had annual bed rates of less than $550.

    Residents want to age in place, which can increase risk management costs.

    In some cases, AFH owners and licensees lack business management and healthcare experience.

The report presents a set of considerations for the Legislature, including:

    Suggestions to make the Washington AFH market more appealing to a wider number of insurers, which could increase market competition and produce more competitive pricing.

    Improving education for current and potential AFH owners on insurance, risk management, and business ownership.

    Considerations on the average daily bed rate paid to AFHs compared with other facilities.

    Suggestions on certain DSHS administrative items.

The Legislature convenes for its 2026 session on January 12, 2026.