L.A. County opens probe into FAIR Plan's claims practices following widespread complaints

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Set us as preferred Following widespread complaints over how the California FAIR Plan has handled January 2025 wildfire claims, Los Angeles County has opened a civil probe into the state’s home insure of last resort to determine if it has violated consumer protection laws.The Office of the County Counsel is looking into a wide range of practices by the privately operated insurer, which has come under particular criticism over its handling of claims for smoke damage, which leaves homes standing but often times uninhabitable due to toxic contamination.The county is also investigating delays in responding to claims, whether the insurer has engaged in a practice of switching adjusters that burdened policyholders and whether it has failed to properly provide living expenses, among other issues, according to a letter sent to the FAIR Plan’s leadership.It also demands the plan halt any illegal practices if they are ongoing.Business State regulators have taken legal action against California’s home insurer of last resort over its alleged denial and limiting of smoke damage claims stemming from the Jan.

7 and prior fires — a move critics say is overdue and may not amount to much.“After having their lives devastated by the fires, Altadena residents should not be victimized yet again by their own insurance company,” said Los Angeles County Supervisor Kathryn Barger, who represents devastated Altadena neighborhoods, in a statement accompanying the announcement.The county is empowered by statute to investigate and prosecute violations of the Unfair Competition Law on behalf of California residents and to seek restitution, civil penalties and injunctive relief for any violations.In response to the investigation, a FAIR Plan spokesperson said the insurer is reviewing the county’s letter, while noting it has received roughly 5,400 claims from the Eaton and Palisades fires and paid nearly $3.5 billion to policyho...