California's FAIR Plan faces a lawsuit over imposing $1 billion in emergency fees on homeowners. Consumer advocates challenge the authority of these charges aimed at stabilizing the insurance market amid escalating wildfire risks.

The lawsuit by Consumer Watchdog against the California Department of Insurance could deepen the state's insurance crisis by challenging cost recovery efforts by insurers under the FAIR Plan.

Consumer Watchdog sues to prevent California insurance surcharges that could cost homeowners millions, challenging the fairness of the FAIR Plan's practices.