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Insurance plan fights overhaul aimed at wildfire victims

Posted at 3:26 PM, Dec 13, 2019
and last updated 2019-12-13 18:26:00-05

SACRAMENTO, Calif. (AP) - A lawsuit is challenging California's authority to require insurance coverage for people who live in wildfire prone areas.

People who can't buy property insurance in California usually get it from a state-mandated insurance pool called the FAIR Plan. The pool only sells fire insurance. Homeowners have to purchase a second plan to cover other hazards.

Last month, state Insurance Commissioner Ricardo Lara ordered the pool to begin selling comprehensive policies next year.

On Friday, the California FAIR Plan Association sued, arguing the order was illegal. They say it will result in increased costs for property insurance.