California Levies $1 Billion Assessment on Insurers for LA Fires (2)

California’s insurance commission plans to impose a $1 billion assessment on private insurers to shore up the FAIR Plan, the state’s insurer of last resort, after last month’s devastating Los Angeles wildfires.

Insurance Commissioner Ricardo Lara said the assessment is necessary for the FAIR Plan to continue paying out claims to survivors of the fires, which destroyed more than 16,000 structures and resulted in insured losses of as much as $75 billion, according to one analysis.

“The FAIR Plan must pay claims just like any other insurance company,” Lara said in a statement Tuesday.

The assessment is the first for the state-backed program ...