California Implements Reforms to Stabilize Insurance and Address Rate Hikes
TL;DR
California Governor Gavin Newsom signed bipartisan legislation to bolster the state's home insurer of last resort, the FAIR Plan, by allowing it to request state-backed loans and spread out claims payments after disasters, aiming to prevent insolvency amid increasing wildfire risks due to climate change. Additionally, new laws expand oversight of the FAIR Plan board to improve transparency and stability in California's insurance market, which is under pressure from rising wildfire damages and insurer withdrawals.
- New California law aims to stabilize insurance for people who can’t get private coverage AP News
- Bay Area community will have to use California FAIR plan as rate hike looms CBS News
- California’s home insurer of last resort seeks 36% rate hike following January fires Los Angeles Times
- California FAIR Plan seeks huge rate hike. Map shows which ZIPs hit hardest San Francisco Chronicle
- Gavin Newsom signs bills to bring changes to California FAIR Plan Sacramento Bee
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