June 26 - Court Rules FAIR Plan's Fire Policy Violates State Insurance Law

The Los Angeles County Superior Court has ruled the California FAIR Plan’s fire insurance policy does not meet the minimum coverage standards required under state law. Judge Stuart M. Rice found that FAIR’s definitions of “direct physical loss” and its past use of “sight and smell” tests for smoke damage are unlawfully restrictive compared to California’s standard fire policy outlined in Insurance Code Section 2071. This decision confirms that many policyholders may have been wrongfully denied coverage for smoke damage to their homes.