The California Department of Insurance is taking enforcement action against the California FAIR Plan for unlawful smoke damage claim denials related to the 2025 Eaton and Palisades Fires, suggesting that standard denials may constitute insurance bad faith under California law.
Source: holbrookleavitt. Original: https://www.holbrookleavitt.com/blog/2026/april/impact-of-bad-faith-claims-on-future-coverage/