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Civil Litigation

Jun. 27, 2025

Insurance commissioner seeks dismissal of FAIR Plan surcharge suit

The California Insurance Department seeks dismissal of Consumer Watchdog's lawsuit, defending bulletins allowing FAIR Plan insurers to recoup assessments via policyholder fees, citing Proposition 103 authority.

The California Department of Insurance seeks the dismissal of a lawsuit filed by Consumer Watchdog over two bulletins that the advocacy group believes will result in millions of dollars of surcharges on California FAIR Plan policyholders.

The department's demurrer, filed Monday, says that Insurance Commissioner Ricardo Lara issued the bulletins pursuant to his authority under Proposition 103. It also says that the California Supreme Court held that the commissioner's regul...

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