California consumer group sues to block insurers from adding surcharge following LA fires
- Consumer Watchdog filed a lawsuit against the California Department of Insurance and Commissioner Ricardo Lara to block new surcharges on homeowners' insurance bills due to recent wildfire assessments.
- The lawsuit argues that the decision allowing insurance companies to pass-through costs to policyholders was made without public input and violates the Administrative Procedure Act and FAIR Plan statutes.
- State Farm has faced over $7.9 billion in claims from the wildfires and is seeking a significant rate increase, with potentially $740 million in costs for homeowners across California.
- The Consumer Watchdog attorney criticized the decision as unfair, asserting it shifts financial burdens from insurance companies to homeowners and exacerbates the economic challenges faced by policyholders.
33 Articles
33 Articles
Eaton Fire Survivors Calls Upon Insurance Commissioner to Investigate State Farm
As State Farm pursues a 17% rate increase for home insurance, survivors of the Eaton Fire Thursday urged state Insurance Commissioner Ricardo Lara to launch a formal investigation into what they describe as widespread delays, denials and unresolved claims by the nation’s largest insurer following January’s wildfires. Nine survivors of the Eaton Fire and longtime […]
Eaton fire victims call for investigation into State Farm for delays, violations
LOS ANGELES — Survivors of the Eaton fire gathered Thursday morning in Pasadena to condemn State Farm's alleged mishandling of a slew of claims by policyholders who suffered losses in the blaze. Speaking in front of State Farm's catastrophe claim tent on Colorado Boulevard,, the group urged California Insurance Commissioner Ricardo Lara to launch a formal investigation into the insurance ...
L.A. fires: Consumer group sues to block insurers from charging Californians $500 million
A consumer advocacy group filed a lawsuit this week to block insurers from charging California customers for $500 million in costs associated with the deadly Los Angeles fires. California’s insurance commission in February ordered insurers doing business in California to provide $1 billion to the FAIR Plan, the state’s insurer of last resort, to help it pay out claims related to the L.A. wildfires. The order allows insurers to recoup half the co…
LA wildfires drive Q1'25 insured losses above $53bn: Aon
According to Aon’s Q1 Global Catastrophe Recap, insured losses in the opening quarter exceeded $53 billion, well above the 21st-century Q1 average of $17 billion, marking the second-highest total on record after Q1 2011. As per the firm’s report, the California wildfires contributed approximately $38 billion to this insured loss total, or 71%. Meanwhile, Q1 2025 economic losses were at least $83 billion, which, according to Aon, was well above t…
California Group Sues to Block Insurers Adding Surcharges After LA Fires
A consumer group has filed a lawsuit to block California insurers from passing $500 million in surcharges on to policyholders to help cover outlays resulting from the devastating Los Angeles County fires in January. The April 14 lawsuit, filed in Los Angeles Superior Court by Consumer Watchdog, seeks to halt the state Insurance Commissioner’s approval of the surcharges, which companies hope to impose to recoup the money they had to provide Cali…
The Mercury news
Santa Cruz SentinelLawsuit seeks to halt California’s homeowner-funded FAIR Plan insurance bailout
Consumer advocates are suing to halt a massive homeowner-funded bailout of California’s last-resort insurance program after it reported it would run out of money to pay claims arising from the devastating Los Angeles wildfires. In February, the state insurance department allowed the program, known as the FAIR Plan, to collect $1 billion in emergency payments from other insurers — who are expected to pass on a significant portion of those costs t…
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