A consumer group has filed a lawsuit to block California insurers from passing $500 million in surcharges on to policyholders to help cover outlays resulting from the devastating Los Angeles County fires in January.
The April 14 lawsuit, filed in Los Angeles Superior Court by Consumer Watchdog, seeks to halt the state Insurance Commissioner’s approval of the surcharges, which companies hope to impose to recoup the money they had to provide California FAIR Plan, the state’s insurer of last resort.