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Quotes: "The plan says it’s expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures

Quotes: "The plan says it’s expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures and killed at least 29 people. Roughly 4,700 claims have been filed as of this week, and the plan has already paid out more than $914 million. Under a FAIR Plan request approved by the state Tuesday, all insurers doing business in California will have to bear half the cost and can pass on the rest to all policyholders in the form of a one-time fee. Insurers can collect that cost in the next two years. The state Insurance Department must approve those costs."

elmerfud 2y ago
This just seems like another reason why businesses such as insurance should not be doing business in California. What other insurer that has higher than expected losses can simply pass on the overages to other unrelated companies? This just boggles my mind why any insurance company would do business in that state, especially for something high risk like this. It sounds to me like those people who were getting their insurance through the FAIR plan need to be charged higher rates across the board because the insurance company that deemed these places uninsurable were correct in their assessment. It's like the state doesn't believe that underwriters know what they're doing. If you want to share the burden make the taxpayer of California pick up the difference. Just more insanity coming out of California.