L.A. County Counsel probes California FAIR Plan over fire claims
County lawyers are investigating potential unfair-practice violations after widespread complaints of delays, underpayments and denials following last year's fires.
By Hans Laetz
California legal officials are going after the California FAIR Plan over its handling of insurance claims following last year's fires.
The L.A. County Office of County Counsel is focused on potential violations of California's unfair competition law by the California FAIR Plan.
The probe comes after widespread complaints from local policyholders of unreasonable processing delays, underpayments, outright denials, and refusals by the California FAIR Plan to pay for testing and cleanup of toxic smoke.
The L.A. County Counsel has issued formal notice demanding that the California FAIR Plan stop these practices.
The California FAIR Plan is a private syndicate made up of all the insurance companies in the state, established by the state of California.
It operates without public funding and relies on the insurance companies to provide coverage for homeowners who can't get policies through the voluntary private market.
Under state law, the L.A. County Counsel has the authority to investigate the California FAIR Plan if unfair trade practices are proven, and can seek civil fines, restitution and court-ordered injunctions.
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