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You are at:Home»Wildfire»Consumer Group Fights $500 Million Wildfire Fee in California
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Consumer Group Fights $500 Million Wildfire Fee in California

Terrain NewsBy Terrain NewsApril 16, 2025001 Min Read
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Consumer Group Fights $500 Million Wildfire Fee In California
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The FAIR Plan, California’s insurer of last resort, is seeking a $1 billion bailout to cover costs from recent wildfires. A consumer advocacy group, Consumer Watchdog, has filed a lawsuit against the state’s insurance commissioner, Ricardo Lara, claiming he exceeded his authority by allowing insurers to pass on $500 million in wildfire-related costs to policyholders. This cost-shifting process, according to the lawsuit, was not properly vetted by the legislature and violates state law. The FAIR Plan, struggling due to rising fire-related claims and increasing reliance on its coverage, currently insures over 555,000 homes. Insurers argue that blocking cost recovery would harm homeowners and could worsen California’s insurance crisis, as many insurers have already contributed funds to support the FAIR Plan. With the frequency and intensity of wildfires increasing, the state is adjusting regulations to encourage insurers to cover high-risk areas more effectively.

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California Consumer Fee Fights Group Million Wildfire
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