{"id":76148,"date":"2025-10-09T17:57:02","date_gmt":"2025-10-10T00:57:02","guid":{"rendered":"https:\/\/lapost.us\/?p=76148"},"modified":"2025-10-09T17:57:02","modified_gmt":"2025-10-10T00:57:02","slug":"governor-newsom-signs-bipartisan-package-of-bills-reforming-californias-insurer-of-last-resort","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=76148","title":{"rendered":"Governor Newsom signs bipartisan package of bills reforming California\u2019s insurer of last resort"},"content":{"rendered":"\n\n\n
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What you need to know:<\/strong>\u00a0Governor Newsom signed legislation to improve the state\u2019s insurer of last resort, the FAIR Plan, a move that will strengthen California\u2019s home insurance market.<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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SACRAMENTO \u2013\u00a0Governor Gavin Newsom today announced he signed a bipartisan package of bills that will improve the state\u2019s insurer of last resort and help Californians recover from disasters. Today\u2019s action builds on years of work to combat the climate-fueled insurance crisis, which is being felt across the country and around the world.<\/p>\n

The legislation strengthens the state\u2019s third-party insurer of last resort, the FAIR Plan, with new financing mechanisms to more swiftly pay claims, better oversight, improved policyholder experience, and added coverage for manufactured homes. Additionally, the California Department of Insurance will be required to consider additional home hardening measures every five years as part of its\u00a0Safer from Wildfires<\/a>\u00a0efforts.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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“The kinds of climate-fueled firestorms like we saw in January will only continue to worsen over time. That\u2019s why we\u2019re taking action now to continue strengthening California\u2019s insurance market to be more resilient in the face of the climate crisis.”<\/h4>\n

\nGovernor Gavin Newsom<\/strong><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Last month, the Governor\u00a0signed an executive order<\/a>\u00a0to expedite the state\u2019s response to mitigate the impacts and fairly allocate the costs of natural disasters and further stabilize the insurance market and energy utility sector.<\/p>\n

“These crucial reforms to the FAIR Plan mark a significant step forward in protecting consumers, stabilizing the market, and enhancing transparency. As we implement the largest regulatory changes in our market, the insurance company-run FAIR Plan must meet the challenge of addressing our insurance crisis,”\u00a0stated Insurance Commissioner Ricardo Lara.<\/strong>\u00a0“As we tackle availability concerns and ensure that insurance companies provide consumers with policies in the traditional market as mandated by my new regulations, the FAIR Plan must offer essential support to its customers. I am grateful to Governor Newsom for his continued leadership and to the legislators who have worked on these vital issues, which will greatly benefit communities most at risk of wildfires.”<\/p>\n

The Governor signed the following bills:<\/p>\n