A judge ruled that the California FAIR Plan’s smoke-damage policy violates state law, while in another matter a lawsuit from a consumer group is drawing concern from insurers that it could push the California insurance market closer to collapse.

On Tuesday, a Los Angeles County judge ruled that by denying coverage for clean-up and remediations, the FAIR Plan is violating state law.

Los Angeles County Superior Court Judge Stuart Rice on Tuesday said that the California FAIR Plan’s policy vi…

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