California Lawmakers File Wildfire Plan, Without Newsom Asks — Insurance, California

INSURANCE, California — California legislators introduced a bill Saturday that would update the state’s wildfire response without shifting liability away from publicly traded utilities.

Wildfire Details

Evacuations and firefighting response

The move comes after extended negotiations with Gov. Gavin Newsom’s administration, which had been advocating for measures that would bar insurers from suing utilities to recover payouts for property policyholders.

The legislation is the result of a compromise with Newsom and is intended to bolster the state’s wildfire recovery response amid a rapidly warming climate.

Newsom said the legislation will also speed up payouts to survivors, put new limits on hedge funds pursuing wildfire-related lawsuits against utilities and tighten safety accountability for utility executives.

Related: California Lawmakers to Oppose Limits on Insurance Fire Claims “Nonetheless, this system needs full structural reform — not a partial one,” Newsom said in a statement, calling on lawmakers to revisit the issue next year, after he leaves office due to term limits.

Lawmakers snubbed Newsom’s push to bar insurance companies from suing utilities for wildfire-related claims through a process known as subrogation.

Insurers had warned that such a move would drive up premiums, stinging homeowners and businesses already frustrated with rising rates for coverage in recent years.