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Flurry of Legislative and Regulatory Action on CA Wildfires

February 18, 2025 (1 min read)

Flurry of Legislative Action on Wildfires in CA

In response to the devastating wildfires in Los Angeles last month, California Insurance Commissioner Ricardo Lara (D) and several state lawmakers have proposed a 10-bill package of legislation aimed at improving disaster preparedness and assisting wildfire survivors.

The bills include the California Safe Homes Act, which would create a grant program to help residents buy fire-rated roofs and create non-ignition zones around their homes; the Business Insurance Protection Act, which would broaden the insurance commissioner’s authority to issue moratoriums on non-renewals and cancellations after emergency declarations to include businesses and other properties; and the Eliminate “The List” Act, which would make California the first state in the nation to require insurers to pay wildfire survivors 100% of their contents coverage limits without requiring them to submit an itemized list of everything they lost. (INSURANCE JOURNAL)

CA Approves $1B Assessment on Insurers for LA Wildfires

California Insurance Commissioner Ricardo Lara (D) approved a request from the state’s home insurance plan of last resort, the California FAIR Plan, for a $1 billion assessment on insurers doing business in the state to cover claims from the Los Angeles wildfires. The decision is likely to drive up insurance costs for California homeowners and could also drive more insurers out of the state. (INSURANCE JOURNAL, NEW YORK TIMES)

CA Insurance Commissioner Denies State Farm’s Request for 22% Rate Hike

California Insurance Commissioner Ricardo Lara (D) declined a request from State Farm for a 22% emergency, interim rate increase, which the insurer said was partly due to the LA wildfires. Instead, Lara called a meeting with the insurer to get more information about its financial situation. (INSURANCE JOURNAL)

—Compiled by SNCJ Managing Editor KOREY CLARK

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