August 1 - FAIR Plan Hit with Legal Action Over Smoke Denial Pattern

Following years of mounting complaints and a 2022 investigation, the California Department of Insurance has filed formal legal action against the FAIR Plan for allegedly violating insurance laws and wrongfully denying smoke damage claims. The FAIR Plan changed its policy language in 2017 but failed to revise its claims handling despite warnings from regulators and a major court ruling confirming smoke damage must be covered. The San Francisco Chronicle reports that the CDI’s action includes a cease-and-desist order and potential penalties, accusing the FAIR Plan of ignoring science and legal standards at the expense of wildfire victims' health and safety. The FAIR Plan has until mid-August to file a response.