The California Insurance Commissioner Ricardo Lara approved a request from the Justo California Plan for an evaluation of $ 1 billion in the market insurers admitted to cover claims of the Los Angeles forest fires.

The Just Plan reported that it has paid more than $ 914 million to the insured, including early payments, to cover claims related to the fires of Palisades and Eaton.

As of February 9, the Just Plan received approximately 3,469 claims for damages caused by the Palisades fire and approximately 1,325 claims for damage caused by the Eaton fire. Claims vary according to the type and amount of coverage and loss. Approximately 45% of forest fire claims are reported as total losses, 45% reported as partial losses and 10% as a fair rent value, which covers lost rental income due to a covered danger, according to the plan fair.

A handful of great insurers from California have reported losses greater than $ 1 billion of forest fires in the Los Angeles area.

The Travelers Companies Inc. announced Tuesday that it will lose approximately $ 1.7 billion of forest fires last month, which swept the region and destroyed tens of thousands of homes earlier this month. Los Angeles forest fires could lead to total losses of up to $ 164 billion and insured losses of up to $ 40 billion, according to preliminary estimates.

The accounting subcommittee of the Just Plan and the Government Committee recommended an evaluation of $ 1 billion, allowing the fair plan to access available layers of reinsurance and maintain additional operations.

In general, evaluations are based on the market share of an insurer of commercial and housing policies for two years.

The fair plan is also accessing reinsurance as a payment mechanism to help pay claims.

To date, it has fulfilled its deductible of $ 900 million and has accessed $ 350 million in reinsurance. The fair plan can access additional reinsurance layers based on incurred losses and pending reserves of up to a limit of $ 5.78 billion, which includes variable percentages of co-cortide, similar to co-coons, subject to certain conditions. To access all available reinsurance layers, the fair plan is responsible for paying up to approximately $ 3.5 billion, including the deductible of $ 900 million and co -payment, according to the fair plan.

The fair plan was established by Statute in 1968 as the State Insurance Security Network. Each licensed property insurance company in California becomes a member of the Just Plan as a condition for doing business in California.

Topics Catastrophe natural disasters forest fires Louisiana