Overview
- This week the Newsom administration circulated a detailed explanation of its plan in a letter from Cynthia Stein to Los Angeles County officials that frames the changes as putting survivors first.
- A key feature under discussion would curb insurers’ subrogation rights, which are insurers’ legal ability to recoup disaster payouts from the utility that caused the fire.
- Supporters say the changes would speed payments to victims by reorganizing how the nearly depleted wildfire liability fund is used and by limiting outside claims on those dollars.
- A broad coalition of insurers, local governments, survivor groups and consumer advocates opposes the proposal, saying it would reduce victims’ legal recoveries and shift costs onto homeowners, insurers and taxpayers.
- Lawmakers have two weeks left in the session to act and the debate is intensifying after reports that utility executives signaled on investor calls they might prioritize shareholder returns over infrastructure if liability relief is not approved.