LA Fire Insurance Cost-Shifting ‘Unlawful,’ Watchdog Alleges (1)

California’s insurance commissioner is unlawfully allowing the state’s insurer of last resort to shift of hundreds of millions of dollars in costs related to Los Angeles’ January wildfires onto policyholders, according to a lawsuit filed by advocacy group Consumer Watchdog.

California’s FAIR plan member insurers received Insurance Department Commissioner Ricardo Lara’s approval to raise rates for Californians with home or property insurance without first seeking public comment or getting lawmakers’ approval, said the complaint filed Monday in California Superior Court, Los Angeles County.

“If this change is allowed to stand, it will force California policyholders to pay hundreds of millions—and ...