"In the closing days of the legislative year, California lawmakers sent Gov. Gavin Newsom a bill that is meant to toughen scrutiny of the state's embattled fire insurer of last resort by insisting that two of their leaders join its governing committee. Assembly Bill 234 would put the state's two top lawmakers currently Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas on the governing committee of the FAIR Plan, the insurer that's mandated by law to sell policies to homeowners who can't"
"The FAIR Plan, which is an alliance of insurers that do business in the state, has grown to more than 610,000 policies as of June, a 154% increase since September 2021. It has become one of the largest insurers in California as other insurance companies have canceled or stopped issuing new policies here, citing growing wildfire risk. The plan is run by its member insurers not the state. Its governing committee consists of mostly insurance representatives, though the governor appoints some non-voting members."
Assembly Bill 234 would place California's Senate President Pro Tem and Assembly Speaker as non-voting members on the FAIR Plan governing committee. The FAIR Plan has expanded rapidly to more than 610,000 policies as other insurers pull back amid wildfire risk, making it one of the state's largest insurers. The plan is run by its member insurers, and its governing committee is dominated by insurance representatives. Insurance Commissioner Ricardo Lara urged the governor to sign the bill to increase transparency and legislative oversight. The FAIR Plan faces homeowner lawsuits over denied smoke-damage claims and separate legal action from the state's Insurance Department.
Read at www.ocregister.com
Unable to calculate read time
Collection
[
|
...
]