Commissioner Lara’s Statement on Latest Court Ruling Providing Win for Consumers over FAIR Plan
News: 2022 Press Release
LOS ANGELES — Insurance Commissioner Ricardo Lara issued the following statement after a Los Angeles Superior Court yesterday blocked the FAIR Plan's latest attempt to deny consumers with greater coverage options. Commissioner Lara ordered the FAIR Plan, California's homeowners insurance safety net, to implement a more comprehensive policy option in addition to its current fire-only policy. Currently, consumers must purchase a separate “difference in conditions” policy to have protection from liability and other perils typically covered by a homeowners policy. The judge previously upheld the Commissioner’s authority to protect consumers in July 2021.
“California consumers win when they have greater options for insurance coverage. The FAIR Plan, once again, has tried to put up roadblocks and deny consumers choice and, once again, a judge has ruled that they must comply with my order. By reaffirming that the FAIR Plan needs to implement a more comprehensive coverage option for homeowners, Judge Strobel’s decision is another victory for consumers.
“The FAIR Plan needs to stop delaying and move forward with giving consumers more choice. My Department of Insurance is ready to work with the FAIR Plan to make that coverage available for consumers as soon as possible, just as we continue to push for increased FAIR Plan coverage for commercial businesses.”
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
