Los Angeles County says it has opened an investigation into how the California FAIR Plan Association handled claims from policyholders affected by the January 2025 Eaton and Palisades fires. The inquiry focuses on potential violations of California’s Unfair Competition Law.
The County says the investigation follows residents’ complaints about delayed or underpaid claims, denials, and refusals to pay for testing or remediation of toxic contamination. These are complaints the County is examining; its announcement does not say it has found that the FAIR Plan violated the law.
County Counsel says it formally notified FAIR Plan that if unlawful or unfair business practices are occurring, the plan must stop them and comply with state law; the notice is conditional, not a finding that violations occurred.
The County describes the FAIR Plan as a private association of insurers licensed to write property insurance in California, funded primarily by policy sales, and an insurer of last resort for homeowners who cannot buy traditional coverage. It says the plan is not a state agency or publicly funded.
County Counsel says it can seek restitution, civil penalties, and injunctive relief for violations. The announcement reports no investigation result, compensation award, or timetable; what relief, if any, policyholders may receive remains unknown from this notice.