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From the Insurance Journal
On Tuesday, a Los Angeles County judge ruled that by denying coverage for clean-up and remediations, the FAIR Plan is violating state law.
Los Angeles County Superior Court Judge Stuart Rice on Tuesday said that the California FAIR Plan's policy violates the insurance code because it provides less coverage than what is required by the state's Standard Form Fire Insurance Policy without making a distinction for smoke damage.
Rice said the FAIR Plan violates the state's insurance code because it offers less coverage than is required by state policy, which provides coverage for all "loss by fire" damage.
Hilary McLean, a spokesperson for the FAIR Plan, told the LA. Times the plan is reviewing the decision, but "As the FAIR Plan is in the process of updating its policy language to reflect the manner in which claims have been adjusted since last year, it is unlikely to pursue an appeal."
In the other matter, the industry is taking aim at a lawsuit from Consumer Watchdog that challenges the way the FAIR Plan recovers costs, claiming the current system ushered in as part of several changes made by California Insurance Commissioner Ricardo Lara is unfair.
Consumer Watchdog has argued surcharges will result from a decision reached by the commissioner last year to allow the insurers that comprise and operate the FAIR Plan to pass-through costs to their policyholders when the FAIR Plan is forced to assess those companies for funds after a catastrophe.....
Judge Says California FAIR Plan Violates Law; Industry Fights Consumer Group Suit
A judge ruled that the California FAIR Plan's smoke-damage policy violates state law, while in another matter a lawsuit from a consumer group is drawing concern from insurers that it could push the California insurance market closer to collapse.On Tuesday, a Los Angeles County judge ruled that by denying coverage for clean-up and remediations, the FAIR Plan is violating state law.
Los Angeles County Superior Court Judge Stuart Rice on Tuesday said that the California FAIR Plan's policy violates the insurance code because it provides less coverage than what is required by the state's Standard Form Fire Insurance Policy without making a distinction for smoke damage.
Rice said the FAIR Plan violates the state's insurance code because it offers less coverage than is required by state policy, which provides coverage for all "loss by fire" damage.
Hilary McLean, a spokesperson for the FAIR Plan, told the LA. Times the plan is reviewing the decision, but "As the FAIR Plan is in the process of updating its policy language to reflect the manner in which claims have been adjusted since last year, it is unlikely to pursue an appeal."
In the other matter, the industry is taking aim at a lawsuit from Consumer Watchdog that challenges the way the FAIR Plan recovers costs, claiming the current system ushered in as part of several changes made by California Insurance Commissioner Ricardo Lara is unfair.
Consumer Watchdog has argued surcharges will result from a decision reached by the commissioner last year to allow the insurers that comprise and operate the FAIR Plan to pass-through costs to their policyholders when the FAIR Plan is forced to assess those companies for funds after a catastrophe.....