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New California law aims to stabilize insurance for people who can't get private coverage
The new law lets the FAIR Plan access state-backed loans and spread claims payments to avoid insolvency after $4 billion wildfire losses, aiding nearly 600,000 policies.
- California Gov. Gavin Newsom signed a bipartisan bill allowing the state's insurer of last resort, the FAIR Plan, to request state-backed loans and bonds and spread out claims payments over multiple years after a disaster.
- The FAIR Plan provides insurance policies to homeowners who can't get private coverage because their properties are deemed too risky to insure, and the number of policyholders has skyrocketed due to increasingly devastating wildfires.
- After wildfires in Los Angeles destroyed over 17,000 structures earlier this year, the FAIR Plan faced a $4 billion loss and needed a $1 billion bailout from private insurers to pay claims, with half of the cost expected to be passed onto all policyholders.
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33 Articles
33 Articles
Associated Press News+30 Reposted by 30 other sources
New California law aims to stabilize insurance for people who can't get private coverage
California Gov. Gavin Newsom has signed a bill to prevent the state’s plan that provides insurance to homeowners who can’t get private coverage from running out of money.
·United States
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New California law aims to stabilize homeowner insurance for people who can’t get private coverage
By TRÂN NGUYỄN, Associated Press SACRAMENTO — California Gov. Gavin Newsom signed a bipartisan bill Thursday that aims to prevent the state’s home insurer of last resort from running out of money following a natural disaster. The FAIR Plan is an insurance pool that provides policies to people who can’t get private insurance because their properties are deemed too risky to insure. The number of homeowners forced onto the FAIR Plan has skyrocketed…
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Total News Sources33
Leaning Left15Leaning Right0Center10Last UpdatedBias Distribution60% Left
Bias Distribution
- 60% of the sources lean Left
60% Left
L 60%
C 40%
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