Judge Upholds California Insurance Commissioner’s Order to Expand FAIR Plan Coverage
July 20, 2021
A Superior Court judge has upheld the California Insurance Commissioner’s authority to order the California FAIR Plan to offer broader coverage options to consumers.
Los Angeles Superior Court Judge Mary Strobel has upheld California Insurance Commissioner Ricardo Lara’s authority to order broader coverage options to consumers and she directed the commissioner to remove “some liability coverages that have no relationship, nexus, or connection to the insured property” and to resubmit his order to the FAIR Plan for immediate implementation.
Lara in 2019 ordered the FAIR Plan to offer a comprehensive policy more akin to a traditional homeowners policy, in addition to its current fire-only coverage, so a homeowner who was non-renewed or could not obtain similar coverage from a standard insurer could get this comprehensive coverage from the FAIR Plan.