Eight days after state officials put the final piece of the new regulations into place, wildfires swept through Los Angeles.

In their aftermath, Mr. Lara imposed a 1-year moratorium on nonrenewals, but only in the fire-affected areas. It will expire in January 2026.

Insurers already have applied to charge their residential customers $425 million in losses incurred by the FAIR plan in the January fires, based on the new pass-through approved by Mr. Lara. Consumer Watchdog has filed a lawsuit challenging those assessments.

The incentive to shed customers in risky areas remains in place for insurers that have yet to file for rate incr

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