California’s FAIR Plan hit with Class Action Suit

A class action lawsuit was filed last week against California’s insurer of last resort, the FAIR Plan. Filed in Alameda County Superior Court, the suit represents 365,000 policyholders.

The insureds claim the plan sold policies that illegally fail to properly cover damages from fire.

They’re also targeting California Insurance Commissioner Ricardo Lara and the California Department of Insurance. The claimants contend that Lara and the department did not enforce laws on the books that set standards for all fire insurance policies.

The insureds and their attorneys say the main goal of the suit is not to seek monetary damages, or benefits from property lost in fires. They want a court order that requires the FAIR Plan to comply with current state law.

In addition, they are asking for the FAIR Plan to be required to broaden wildfire coverage in the policies it sells, and they want it to include all direct physical loss from smoke and fire.

Source link: PropertyCasualty360.com — https://bit.ly/4fvNa7z