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1 SPENCER Y. KOOK (SBN 205304)
skook@hinshawlaw.com
2 DAVID T. HAYEK (SBN 144116)
dhayek@hinshawlaw.com
3 SARA E. FRANKS (SBN 345940)
sfranks@hinshawlaw.com
4 HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600
5 Los Angeles, CA 90071-3476
Telephone: 213-680-2800
6 Facsimile: 213-614-7399
7 Michelle L. Burton, Esq. (SBN 187152)
Rachael K. Kelley, Esq. (SBN 292718)
8 Jahne’ Maddock, Esq. (SBN 338431)
BURTON | KELLEY, LLP
9 1450 Frazee Road, Suite 501
San Diego, CA 92108
10 Telephone: 833-222-8959
Facsimile: 900-2646
11 Service@burtonkelley.com
12 Attorneys for Defendant
CALIFORNIA FAIR PLAN ASSOCIATION
13
14 SUPERIOR COURT OF THE STATE OF CALIFORNIA
15 FOR THE COUNTY OF SANTA CRUZ – UNLIMITED JURISDICTION
16 SARAH MAPEL, an individual, Case No. 22CV00631
(Assigned to the Honorable Syda Cogliati,
17 Plaintiff, Dept. 5)
18 vs. DEFENDANT CALIFORNIA FAIR PLAN
ASSOCIATION’S COMPENDIUM OF
19 CALIFORNIA FAIR PLAN ASSOCIATION, EVIDENCE IN SUPPORT OF MOTION
an unincorporated association, and DOES 1 FOR SUMMARY JUDGMENT OR
20 through 10, ALTERNATIVELY SUMMARY
ADJUDICATION OF ISSUES (1 OF 5)
21 Defendants.
[Concurrently filed with Notice and Motion for
22 Summary Judgment/Summary Adjudication,
Separate Statement of Undisputed Facts, and
23 [Proposed] Order]
24 Hearing Date: July 25, 2024
Hearing Time: 8:30 a.m.
25 Department: 5
26 Complaint Filed: March 28, 2022
Amended Complaint Filed: August 23, 2022
27 Trial Date: August 26, 2024
28 1
HINSHAW & CULBERTSON LLP COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR
350 South Grand Ave., Suite 3600
Los Angeles, CA 90071-3476 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES
213-680-2800
1050665\321152349.v1
1 Pursuant to California Court Rule 3.1350(g), Defendant California FAIR Plan Association
2 (“FAIR Plan”) submits the following Compendium of Evidence in support of its concurrently filed
3 Motion for Summary Judgement or, in the alternative, Motion for Summary Adjudication,
4 supporting declarations, and Separate Statement of Undisputed Material Facts:
5
TABLE OF CONTENTS
6
7 Request for Judicial Notice:
8 Exhibit A - Excerpts from the FAIR Plan’s August 8, 2012, rate and form filing, CDI No.
9 12-6223
10 Exhibit B - Excerpts from the FAIR Plan’s October 18, 2016, rate and form filing, CDI
11 No. 16-6646
12 Exhibit C – Copy of the First Amended Complaint
13 Declaration of Anthony Morris:
14 Exhibit 8 – Inspection Report from the September 11, 2020 inspection
15 Declaration of Estee C. Natale:
16 Exhibit 2 - Policy
17 Exhibit 8 – Report from E.A. Renfroe
18 Exhibit 16 – Letter from CFP re Claim No. 540870
19 Exhibit 53 – Claim Notes re Claim No. 540870
20 Exhibit 88 – Letter from CIC to FAIR Plan dated 01-04-2021 re Form filing 16-6646
21 Exhibit 89 – Letter to Department of Insurance dated 01-20-21 re Form filing 16-6646
22 Exhibit 90 – CDI Exam Report
23 Exhibit 201 – Property Loss Notice
24 Exhibit 202 – 8/31/20 Email
25 Exhibit 208 – Letter from CFP dated 09-17-2020 re FRV
26 Exhibit 210 – Letter from CFP dated 9-23-2020 re FRV
27 Exhibit 211 – Letter from CFP dated 9-3-2020 re FRV
28 2
COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR
HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES
Los Angeles, CA 90071-3476
213-680-2800 1050665\321152349.v1
1 Exhibit 217 – Letter from CFP dated 11-10-2020 re FRV
2 Exhibit 219 – Email from Pride dated 11-10-2020 re Supplemental Claims Submission
3 Exhibit 220 – Letter from CFP dated 11-18-2020 re denial of supplemental claim
4 Exhibit 221 – Letter from CFP dated 12-10-2020 re FRV
5 Exhibit 222 – CDI Notice dated 12-16-2020 re Pride’s Request for Assistance
6 Exhibit 223 – Email from Pride dated 12-14-2020 re contents cleaning estimate
7 Exhibit 224 – Letter dated 01-05-2021
8 Exhibit 225 – Letter from CFP dated 01-06-2021 re FRV
9 Exhibit 226 – Letter from CFP dated 01-16-2021
10 Exhibit 229 – Email from Mapel dated 02-08-2021
11 Exhibit 230 – Letter from CFP to Mapel dated 02-16-2021
12 Exhibit 241 – Claim Detail Report
13 Declaration of Spencer Y. Kook:
14 Exhibit A - Excerpts from the transcript of the Videotaped Deposition by Zoom of Sarah
15 Elizabeth Mapel, taken on May 1, 2024
16
17 DATED: May 9, 2024 HINSHAW & CULBERTSON LLP
18
By:
19 SPENCER Y. KOOK
Attorneys for Defendant
20 CALIFORNIA FAIR PLAN ASSOCIATION
21
22
23
24
25
26
27
28 3
COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR
HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES
Los Angeles, CA 90071-3476
213-680-2800 1050665\321152349.v1
1 SPENCER Y. KOOK (SBN 205304)
skook@hinshawlaw.com
2 DAVID T. HAYEK (SBN 144116)
dhayek@hinshawlaw.com
3 SARA E. FRANKS (SBN 345940)
sfranks@hinshawlaw.com
4 HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600
5 Los Angeles, CA 90071-3476
Telephone: 213-680-2800
6 Facsimile: 213-614-7399
7 Michelle L. Burton, Esq. (SBN 187152)
Rachael K. Kelley, Esq. (SBN 292718)
8 Jahne’ Maddock, Esq. (SBN 338431)
BURTON | KELLEY, LLP
9 1450 Frazee Road, Suite 501
San Diego, CA 92108
10 Telephone: 833-222-8959
Facsimile: 900-2646
11 Service@burtonkelley.com
12 Attorneys for Defendant
CALIFORNIA FAIR PLAN ASSOCIATION
13
14 SUPERIOR COURT OF THE STATE OF CALIFORNIA
15 FOR THE COUNTY OF SANTA CRUZ – UNLIMITED JURISDICTION
16 SARAH MAPEL, an individual, Case No. 22CV00631
(Assigned to the Honorable Syda Cogliati,
17 Plaintiff, Dept. 5)
18 vs. DEFENDANT CALIFORNIA FAIR PLAN
ASSOCIATION’S REQUEST FOR
19 CALIFORNIA FAIR PLAN ASSOCIATION, JUDICIAL NOTICE IN SUPPORT OF
an unincorporated association, and DOES 1 MOTION FOR SUMMARY JUDGMENT
20 through 10, OR ALTERNATIVELY SUMMARY
ADJUDICATION OF ISSUES
21 Defendants.
[Concurrently filed with Notice and Motion for
22 Summary Judgment/Summary Adjudication,
Separate Statement of Undisputed Facts,
23 Compendium of Evidence in Support of
Motion, and [Proposed] Order]
24
Hearing Date: July 25, 2024
25 Hearing Time: 8:30 a.m.
Department: 5
26
Complaint Filed: March 28, 2022
27 Amended Complaint Filed: August 23, 2022
Trial Date: August 26, 2024
28
HINSHAW & CULBERTSON LLP 1
350 South Grand Ave., Suite 3600
Los Angeles, CA 90071-3476 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE
213-680-2800
1050665\310739127.v1
1 REQUEST FOR JUDICIAL NOTICE
2 The California FAIR Plan Association (“CFP”) requests that the Court take judicial notice
3 of the following matters in conjunction with CFP’s Motion for Summary Judgment or
4 Alternatively Summary Adjudication of Issues filed contemporaneously herewith:
5 Request 1:
6 Pursuant to Evidence Code sections 450, 452(g) & (h), and 453, the contents of the
7 following excerpts from the FAIR Plan’s August 8, 2012, rate and form filing, CDI No. 12-6223,
8 copies of which are attached hereto as Exhibit A:
9 • Filing at a Glance section and all subparts;
10 • Correspondence Summary;
11 • Disposition section reflecting approval of the new smoke damage endorsement;
12 • Objection Letter sections, with copies of the California Department of Insurance’s
13 objection letters;
14 • Form Schedule with attachment: “Smoke Damage Endorsement – DP 0001E – 01
15 17 2013,” which was the final approved form;
16 • Supporting Document Schedules with attachments: “2009 Station Fire Smoke
17 Claims 12-14-2012,” which provided data about smoke only claims; “Responses to
18 11-20-2012 DOI Objections”; “12-14-2012 Response to DOI”; and “CFP to DOI
19 1-2013.”
20 The complete rate and form filing can be accessed through the following website
21 searching under the company name “California FAIR Plan”:
22 https://interactive.web.insurance.ca.gov/warff/index.jsp.
23
24 Request 2:
25 Pursuant to Evidence Code sections 450, 452(g) & (h), and 453, the contents of the
26 following excerpts from the FAIR Plan’s October 18, 2016, rate and form filing, CDI No. 16-6646,
27 copies which are attached hereto as Exhibit B:
28 • Filing at a Glance section and all subparts;
2
HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE
Los Angeles, CA 90071-3476
213-680-2800 1050665\310739127.v1
1 • Correspondence Summary;
2 • Disposition sections reflecting the approval;
3 • Objection Letter sections;
4 • Form Schedules with attachment: “CFP DP 00 01 (06017) – clean rev 1-18-2017,”
5 which was the final approved form;
6 • Supporting Document Schedules with Filing Memorandum and attachments of
7 prior policy forms; and
8 • Superseded Schedule Items with attachments: “CFP 00 01 xx 17 final redlined,”
9 which shows the addition of the “direct physical loss” definition and “DP 0001 –
10 Current Policy to be Replaced,” the superseded policy form.
11 The complete rate and form filing can be accessed through the following website
12 searching under the company name “California FAIR Plan”:
13 https://interactive.web.insurance.ca.gov/warff/index.jsp.
14
15 Request 3:
16 Pursuant to Evidence Code sections 450, 452(d), the First Amended Complaint and
17 Demand for Jury Trial filed in this action on August 23, 2022, Santa Cruz Superior Court Case
18 No. 22CV00631. A true and correct copy of the First Amended Complaint is attached hereto as
19 Exhibit C.
20
21 Respectfully submitted,
22
23 DATED: May 9, 2024 HINSHAW & CULBERTSON LLP
24
By:
25 SPENCER Y. KOOK
Attorneys for Defendant
26 CALIFORNIA FAIR PLAN ASSOCIATION
27
28
3
HINSHAW & CULBERTSON LLP
350 South Grand Ave., Suite 3600 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE
Los Angeles, CA 90071-3476
213-680-2800 1050665\310739127.v1
RJN Exh. A
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Filing at a Glance
Company: California FAIR Plan Association
Product Name: Dwelling Fire & Allied Lines
State: California
TOI: 01.0 Property
Sub-TOI: 01.0002 Personal Property (Fire and Allied Lines)
Filing Type: Form
Date Submitted: 08/08/2012
SERFF Tr Num: PERR-128623184
SERFF Status: Closed-Approved
State Tr Num: 12-6223
State Status: Approved
Co Tr Num: CAFP-PP-DW-CA-12-01-F
Effective Date 01/01/2013
Requested (New):
Effective Date 01/01/2013
Requested (Renewal):
Author(s):
Reviewer(s): Mary Hiltgen (primary), Jerome Tu
Disposition Date: 01/29/2013
Disposition Status: Approved
Effective Date (New): 01/29/2013
Effective Date (Renewal): 01/29/2013
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
General Information
Project Name: CAFP-PP-DW-CA-12-01-F Status of Filing in Domicile: Pending
Project Number: CAFP-PP-DW-CA-12-01-F Domicile Status Comments: This is the domicile state.
Reference Organization: N/A Reference Number: N/A
Reference Title: N/A Advisory Org. Circular: N/A
Filing Status Changed: 01/29/2013
State Status Changed: 01/29/2013 Deemer Date: 10/16/2012
Created By: Sandra Sedano Submitted By: Ines Piquet
Corresponding Filing Tracking Number: N/A
Filing Description:
On behalf of the California FAIR Plan Association (the “FAIR Plan”), we submit this form filing for its Personal Dwelling Fire
Program. The FAIR Plan is introducing a new amendatory endorsement, DP 0001E. This endorsement clarifies coverage by
defining smoke damage. In addition, it limits coverage based on the distance from the fire and the timeliness of the reporting of
the claim.
The FAIR Plan wants to continue to pay legitimate claims while limiting unsubstantiated claims that are reported long after the
fire has been extinguished. These claims require a large amount of expense to investigate while ultimately resulting in typically
no payment or in rare cases little compensation to the insured.
The new endorsement will be mandatory on all dwelling fire policies effective January 1, 2013. While this form restricts
coverage, the FAIR Plan is not proposing any rate adjustments associated with the endorsement. Although the FAIR Plan
anticipates a reduction in expenses associated with meritless smoke claims, there will be a negligible reduction in losses.
The proposed endorsement is similar to those filed and approved for Fidelity National Property and Casualty Insurance
Company filing number 10-8337 and CSE Safeguard Insurance Company filing number 12-2959.
Enclosed is authorization for Perr&Knight to submit this filing on behalf of the Company. All correspondence related to this
filing should be directed to Perr&Knight. The Company has prepared the form contained in this filing. If there are any requests
for additional information, we will forward the request immediately to the Company contact. The Company’s response will be
submitted to your attention as soon as we receive it.
Company and Contact
Filing Contact Information
Sandra Sedano, State Filing Analyst ssedano@perrknight.com
401 Wilshire Boulevard 310-889-0993 [Phone]
Suite 300
Santa Monica, CA 90401
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Filing Company Information
(This filing was made by a third party - perrandknightactuaryconsultants)
California FAIR Plan Association CoCode: State of Domicile: California
3435 Wilshire Boulevard, Suite Group Code: Company Type:
1200 Group Name: State ID Number:
Los Angeles, CA 90010 FEIN Number: 95-2553538
(213) 252-2352 ext. [Phone]
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Filing Fees
State Fees
Fee Required? No
Retaliatory? No
Fee Explanation:
State Specific
Variance Requested? (Yes/No): No
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Correspondence Summary
Dispositions
Status Created By Created On Date Submitted
Approved Jerome Tu 01/29/2013 01/29/2013
Objection Letters and Response Letters
Objection Letters Response Letters
Status Created By Created On Date Submitted Responded By Created On Date Submitted
Pending Mary Hiltgen 12/05/2012 12/05/2012 Sandra Sedano 12/14/2012 12/14/2012
company
response
Pending Mary Hiltgen 11/20/2012 11/20/2012 Sandra Sedano 11/28/2012 11/28/2012
company
response
Amendments
Schedule Schedule Item Name Created By Created On Date Submitted
Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 01/22/2013 01/22/2013
INSURED AGAINST REPLACED
Supporting Mark-up Sandra Sedano 01/22/2013 01/22/2013
Document
Supporting Response to CDI on 1-22-13 Sandra Sedano 01/22/2013 01/22/2013
Document
Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 10/16/2012 10/16/2012
INSURED AGAINST REPLACED
Supporting Mark-up Sandra Sedano 10/16/2012 10/16/2012
Document
Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 10/15/2012 10/15/2012
INSURED AGAINST REPLACED
Supporting Mark-up Sandra Sedano 10/15/2012 10/15/2012
Document
Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 09/20/2012 09/20/2012
INSURED AGAINST REPLACED
Supporting Mark-up Sandra Sedano 09/20/2012 09/20/2012
Document
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Filing Notes
Subject Note Type Created By Created On Date Submitted
Status of filing Note To Reviewer Sandra Sedano 01/04/2013 01/04/2013
Status of filing Note To Reviewer Sandra Sedano 11/15/2012 11/15/2012
RE: Status of Filing Note To Filer Jerome Tu 09/11/2012 09/11/2012
Status of filing Note To Reviewer Sandra Sedano 09/10/2012 09/10/2012
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Disposition
Disposition Date: 01/29/2013
Effective Date (New): 01/29/2013
Effective Date (Renewal): 01/29/2013
Status: Approved
Comment: Only the changes specifically indicated in the application set forth above, as it may have been amended, are approved. Nothing in this letter shall constitute
approval of any other application, whether incorporated by reference, or filed prior or subsequent to the application set forth above. The insurer shall implement this
approval with the same effective date for both new and renewal business and shall offer this product to all eligible applicants as of the implementation date. This
approval shall continue to have full force and effect until such time as a subsequent change for the referenced lines or programs may be approved or ordered by the
Insurance Commissioner.
If any portion of the application or related documentation conflicts with California law, that portion is specifically not approved. Policy forms and underwriting guidelines
included in this filing were reviewed only insofar as they relate to rates contained in this filing or currently on file with the California Department of Insurance. This
approval does not constitute an approval of underwriting guidelines nor the specific language, coverages, terms, covenants and conditions contained in any forms, or
the forms themselves. The Commissioner may at any time take any action allowed by law if he determines that any underwriting guidelines, forms or procedures for
application of rates, or any other portions of the application conflict with any applicable laws or regulations.
Rate data does NOT apply to filing.
Schedule Schedule Item Schedule Item Status Public Access
Supporting Document Prior Approval Rate Application Yes
Supporting Document Letter of Authorization Yes
Supporting Document (revised) Mark-up Yes
Supporting Document Mark-up Yes
Supporting Document Mark-up Yes
Supporting Document Mark-up Yes
Supporting Document Mark-up Yes
Supporting Document Mark-up Yes
Supporting Document (revised) 2009 Station Fire Smoke Claims Yes
Supporting Document 2009 Station Fire Smoke Claims Yes
Supporting Document Responses to 11/20/12 DOI Objections Yes
Supporting Document Response to December 5, 2012 objection letter and Yes
December 13, 2012 conference call
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Schedule Schedule Item Schedule Item Status Public Access
Supporting Document Response to CDI on 1-22-13 Yes
Form (revised) AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
Form AMENDATORY ENDORSEMENT-SMOKE Yes
DAMAGE/PERILS INSURED AGAINST REPLACED
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Objection Letter
Objection Letter Status Pending company response
Objection Letter Date 12/05/2012
Submitted Date 12/05/2012
Respond By Date 12/12/2012
Dear Sandra Sedano,
Introduction:
Please refer to the attached correspondence.
Sincerely,
Mary Hiltgen, CPCU, AU
Associate Insurance Rate Analyst
California Dept. of Insurance
Rate Regulation Branch - LA3
Conclusion:
Sincerely,
Mary Hiltgen
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
STATE OF CALIFORNIA Dave Jones, Insurance Commissioner
DEPARTMENT OF INSURANCE
300 SOUTH SPRING STREET
LOS ANGELES, CA 90013
(213) 346-6692
(213)346-6824 (FAX)
MHiltgen@insurance.ca.gov SENT VIA SERFF
December 5, 2012
Perr & Knight
Ms. Sandra Sedano, Filing Analyst
401 Wilshire Blvd. Ste. 300
Santa Monica, CA 90401
SUBJECT: CDI File Number: 12-6223
ISO File Number: CAFP-PP-DW-CA-12-01-F
Line of Insurance: Personal Fire
Organization California Fair Plan
Form Filing: Dwelling Form/DP 0001E (10/12)
Dear Ms. Sedano:
Thank you for your recent correspondence dated November 28, 2012, via SERFF, in
reference to the above filing. Please review the following objections:
1. SMOKE DAMAGE CLAIMS - LOSSES REPORTED - LESS THAN OR
EQUAL TO 45 DAYS
Please refer to the 2009 Station Fire Exhibit submitted via SERFF. Line (b) of
the exhibit indicates that for claims reported later than 45 days and greater than a
proposed proximity limit of 5 miles, the claims expense = $23,223. The amount
represents only 6% of the total paid expense of <=45 days or 0.8% of the total
paid expenses.
The claim expenses are only 6%, yet 93% of the losses are excluded; the savings
are not significant when compared to the number of claims that are excluded
(93.0%). This provision appears to be unfair and unreasonable, as well as
imposes inequitable treatment of insureds who expect to be indemnified under
their CFP policy. Please note that neither Fidelity National P&C Insurance
Company nor CSE Safeguard Insurance Company’s filings (referenced in your
correspondence dated November 28, 2012) included proximity limits of any
distance.
Please delete the proximity limit of greater than 5 miles with respect to smoke
damage claim losses reported less than or equal to 45 days.
Consumer Hotline (800) 927-HELP • Producer Licensing (800) 967-9331
Page 2
2. SMOKE DAMAGE CLAIMS – LOSSES REPORTED AFTER 45 DAYS
The filed exhibit suggests that if smoke damage claims reported over 45 days and
over 5 miles would limit losses to $500; however, the endorsement excludes
coverage in this situation so that the 83.3% of losses excluded is actually 100%.
The $500 cap in combination with the filed proximity limit appears to be unfairly
discriminatory to CFP insureds. Please refer to #3 below.
3. $500 LIMITATION ON SMOKE DAMAGE CLAIMS
According to the CFP’s 2009 Station Fire Exhibit, the average loss payment with
less than 5 miles from the fire is $795.00. The $500 limit would eliminate valid
claims and impose a limit that appears too low, much lower than the norm.
In your correspondence dated November 28, 2012, two company filings, Fidelity
National P &C Company, 10-8337, and CSE Safeguard Insurance Company, 12-
2959, were referenced. Both companies capped smoke losses reported after 45
days to $2500.00. Most recently, the Interinsurance Exchange of the Auto Club,
CDI #12-6750, provided a $5000 limit and a time limit of 90 days, significantly
greater than the proposed CFP filing.
As the average loss payment = $795.00, the CFP should consider implementing a
higher cap, a reasonable amount would be as low as $1000.00 and up to $2500.00
when considering that several companies have a $2500 limit(cap). (Refer to the
following CDI File Numbers: 12-6750, 12-6540, 12-2959, 11-9474 and 10-8337).
Please advise.
4. STATION FIRE CLAIM EXPENSES
The data provided to the CDI via the Station Fire exhibit is based on one
catastrophic wildfire event. That event is not necessarily representative of all
wildfires in California nor does the claim expense data represent all catastrophic
wildfires in this state. Although the CFP’s claim expenses of $2.5 million appear
to be high, those expenses are the result of only one event, not several. In future
wildfire events, those claim expenses may be considerably less, without the
proposed significant restriction in coverage to insureds. Further, please note that
actuaries review claims expenses in the promulgation of company base rates.
5. PROJECTED SAVINGS TO CLAIM EXPENSES
Please provide supporting data indicating the projected savings to claim expenses
by the imposition of a $500 cap for claims reported over 45 days and a proximity
of less than 5 miles. By placing a $500 limit, how much of the $1,816,352
expense would be eliminated or would the expense continue to be similar?
Page 3
Should the CFP believe a conference call with the CDI may clarify the issues with the
filing, we are willing to schedule one at a convenient time for all parties. Please advise a
date and time to discuss the filing if feasible.
The filing is considered incomplete and appears to violate CIC Section 10100.2(a) (1).
In order to continue our review of the above referenced filing, please provide the
requested revisions and supporting data by December 12, 2012.
Sincerely,
Mary Hiltgen
Mary Hiltgen, CPCU, AU
Associate Insurance Rate Analyst
California Department of Insurance
Rate Regulation Branch – RRFLA3 (Los Angeles)
SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F
State: California Filing Company: California FAIR Plan Association
TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines)
Product Name: Dwelling Fire & Allied Lines
Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F
Objection Letter
Objection Letter Status Pending company response
Objection Letter Date 11/20/2012
Submitted Date 11/20/2012
Respond By Date 12/04/2012
Dear Sandra Sedano,
Introduction:
Please refer to the attached correspondence. Also, please note that the CDI is primarily concerned about the use of a
Proximity Limit and and the very low coverage limit.
Sincerely,
Mary Hiltgen, CPCU, AU
Associate Insurance Rate Analyst
California Dept. of Insurance
Rate Regulation Branch - LA3
Conclusion:
Sincerely,
Mary Hiltgen
PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM
STATE OF CALIFORNIA Dave Jones, Insurance Commissioner
DEPARTMENT OF INSURANCE
300 SOUTH SPRING STREET
LOS ANGELES, CA 90013
(213) 346-6692
(213)346-6824 (FAX)
MHiltgen@insurance.ca.gov SENT VIA SERFF
November 20, 2012
Perr & Knight
Ms. Sandra Sedano, Filing Analyst
401 Wilshire Blvd. Ste. 300
Santa Monica, CA 90401
SUBJECT: CDI File Number: 12-6223
ISO File Number: CAFP-PP-DW-CA-12-01-F
Line of Insurance: Personal Fire
Organization California Fair Plan
Form Filing: Dwelling Form/DP 0001E (10/12)
Dear Ms. Sedano:
Thank you for the above referenced application. In order to continue our review,
please note the following:
1. STATEWIDE RATE IMPACT
The Fair Plan states, “These claims require a large amount of expense to investigate while
ultimately resulting in typically no payment or in rare cases little compensation to the
insured.” Further, the Fair Plan states, “Although the Fair Plan anticipates a reduction in
expenses associated with meritless smoke claims, there will be a negligible reduction in
losses.” The Department requires supporting data as follows:
a) Provide supporting experience data for the peril of Smoke for the past 5 years and
indicate the amount that would be excluded under this endorsement (proximity,
timeliness, $500 limit).
b) How many unsubstantiated claims have been reported to the Fair Plan long after
the fire has been extinguished? What is the total claim expense associated with
the unsubstantiated claims?
c) As this endorsement restricts coverage, please calculate the rate impact.
2. PROXIMITY
The Department is concerned with the proximity limit. In the initial filing, the
California Fair Plan imposed a ½ mile limitation on coverage for the peril of
Smoke. Subsequently, the “Plan” changed the ½ mile limitation to a 2 mile
Consumer
Preview
1 SPENCER Y. KOOK (SBN 205304) skook@hinshawlaw.com 2 DAVID T. HAYEK (SBN 144116) dhayek@hinshawlaw.com 3 SARA E. FRANKS (SBN 345940) sfranks@hinshawlaw.com 4 HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 5 Los Angeles, CA 90071-3476 Telephone: 213-680-2800 6 Facsimile: 213-614-7399 7 Michelle L. Burton, Esq. (SBN 187152) Rachael K. Kelley, Esq. (SBN 292718) 8 Jahne’ Maddock, Esq. (SBN 338431) BURTON | KELLEY, LLP 9 1450 Frazee Road, Suite 501 San Diego, CA 92108 10 Telephone: 833-222-8959 Facsimile: 900-2646 11 Service@burtonkelley.com 12 Attorneys for Defendant CALIFORNIA FAIR PLAN ASSOCIATION 13 14 SUPERIOR COURT OF THE STATE OF CALIFORNIA 15 FOR THE COUNTY OF SANTA CRUZ – UNLIMITED JURISDICTION 16 SARAH MAPEL, an individual, Case No. 22CV00631 (Assigned to the Honorable Syda Cogliati, 17 Plaintiff, Dept. 5) 18 vs. DEFENDANT CALIFORNIA FAIR PLAN ASSOCIATION’S COMPENDIUM OF 19 CALIFORNIA FAIR PLAN ASSOCIATION, EVIDENCE IN SUPPORT OF MOTION an unincorporated association, and DOES 1 FOR SUMMARY JUDGMENT OR 20 through 10, ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES (1 OF 5) 21 Defendants. [Concurrently filed with Notice and Motion for 22 Summary Judgment/Summary Adjudication, Separate Statement of Undisputed Facts, and 23 [Proposed] Order] 24 Hearing Date: July 25, 2024 Hearing Time: 8:30 a.m. 25 Department: 5 26 Complaint Filed: March 28, 2022 Amended Complaint Filed: August 23, 2022 27 Trial Date: August 26, 2024 28 1 HINSHAW & CULBERTSON LLP COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR 350 South Grand Ave., Suite 3600 Los Angeles, CA 90071-3476 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES 213-680-2800 1050665\321152349.v1 1 Pursuant to California Court Rule 3.1350(g), Defendant California FAIR Plan Association 2 (“FAIR Plan”) submits the following Compendium of Evidence in support of its concurrently filed 3 Motion for Summary Judgement or, in the alternative, Motion for Summary Adjudication, 4 supporting declarations, and Separate Statement of Undisputed Material Facts: 5 TABLE OF CONTENTS 6 7 Request for Judicial Notice: 8 Exhibit A - Excerpts from the FAIR Plan’s August 8, 2012, rate and form filing, CDI No. 9 12-6223 10 Exhibit B - Excerpts from the FAIR Plan’s October 18, 2016, rate and form filing, CDI 11 No. 16-6646 12 Exhibit C – Copy of the First Amended Complaint 13 Declaration of Anthony Morris: 14 Exhibit 8 – Inspection Report from the September 11, 2020 inspection 15 Declaration of Estee C. Natale: 16 Exhibit 2 - Policy 17 Exhibit 8 – Report from E.A. Renfroe 18 Exhibit 16 – Letter from CFP re Claim No. 540870 19 Exhibit 53 – Claim Notes re Claim No. 540870 20 Exhibit 88 – Letter from CIC to FAIR Plan dated 01-04-2021 re Form filing 16-6646 21 Exhibit 89 – Letter to Department of Insurance dated 01-20-21 re Form filing 16-6646 22 Exhibit 90 – CDI Exam Report 23 Exhibit 201 – Property Loss Notice 24 Exhibit 202 – 8/31/20 Email 25 Exhibit 208 – Letter from CFP dated 09-17-2020 re FRV 26 Exhibit 210 – Letter from CFP dated 9-23-2020 re FRV 27 Exhibit 211 – Letter from CFP dated 9-3-2020 re FRV 28 2 COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES Los Angeles, CA 90071-3476 213-680-2800 1050665\321152349.v1 1 Exhibit 217 – Letter from CFP dated 11-10-2020 re FRV 2 Exhibit 219 – Email from Pride dated 11-10-2020 re Supplemental Claims Submission 3 Exhibit 220 – Letter from CFP dated 11-18-2020 re denial of supplemental claim 4 Exhibit 221 – Letter from CFP dated 12-10-2020 re FRV 5 Exhibit 222 – CDI Notice dated 12-16-2020 re Pride’s Request for Assistance 6 Exhibit 223 – Email from Pride dated 12-14-2020 re contents cleaning estimate 7 Exhibit 224 – Letter dated 01-05-2021 8 Exhibit 225 – Letter from CFP dated 01-06-2021 re FRV 9 Exhibit 226 – Letter from CFP dated 01-16-2021 10 Exhibit 229 – Email from Mapel dated 02-08-2021 11 Exhibit 230 – Letter from CFP to Mapel dated 02-16-2021 12 Exhibit 241 – Claim Detail Report 13 Declaration of Spencer Y. Kook: 14 Exhibit A - Excerpts from the transcript of the Videotaped Deposition by Zoom of Sarah 15 Elizabeth Mapel, taken on May 1, 2024 16 17 DATED: May 9, 2024 HINSHAW & CULBERTSON LLP 18 By: 19 SPENCER Y. KOOK Attorneys for Defendant 20 CALIFORNIA FAIR PLAN ASSOCIATION 21 22 23 24 25 26 27 28 3 COMPENDIUM OF EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT OR HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES Los Angeles, CA 90071-3476 213-680-2800 1050665\321152349.v1 1 SPENCER Y. KOOK (SBN 205304) skook@hinshawlaw.com 2 DAVID T. HAYEK (SBN 144116) dhayek@hinshawlaw.com 3 SARA E. FRANKS (SBN 345940) sfranks@hinshawlaw.com 4 HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 5 Los Angeles, CA 90071-3476 Telephone: 213-680-2800 6 Facsimile: 213-614-7399 7 Michelle L. Burton, Esq. (SBN 187152) Rachael K. Kelley, Esq. (SBN 292718) 8 Jahne’ Maddock, Esq. (SBN 338431) BURTON | KELLEY, LLP 9 1450 Frazee Road, Suite 501 San Diego, CA 92108 10 Telephone: 833-222-8959 Facsimile: 900-2646 11 Service@burtonkelley.com 12 Attorneys for Defendant CALIFORNIA FAIR PLAN ASSOCIATION 13 14 SUPERIOR COURT OF THE STATE OF CALIFORNIA 15 FOR THE COUNTY OF SANTA CRUZ – UNLIMITED JURISDICTION 16 SARAH MAPEL, an individual, Case No. 22CV00631 (Assigned to the Honorable Syda Cogliati, 17 Plaintiff, Dept. 5) 18 vs. DEFENDANT CALIFORNIA FAIR PLAN ASSOCIATION’S REQUEST FOR 19 CALIFORNIA FAIR PLAN ASSOCIATION, JUDICIAL NOTICE IN SUPPORT OF an unincorporated association, and DOES 1 MOTION FOR SUMMARY JUDGMENT 20 through 10, OR ALTERNATIVELY SUMMARY ADJUDICATION OF ISSUES 21 Defendants. [Concurrently filed with Notice and Motion for 22 Summary Judgment/Summary Adjudication, Separate Statement of Undisputed Facts, 23 Compendium of Evidence in Support of Motion, and [Proposed] Order] 24 Hearing Date: July 25, 2024 25 Hearing Time: 8:30 a.m. Department: 5 26 Complaint Filed: March 28, 2022 27 Amended Complaint Filed: August 23, 2022 Trial Date: August 26, 2024 28 HINSHAW & CULBERTSON LLP 1 350 South Grand Ave., Suite 3600 Los Angeles, CA 90071-3476 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE 213-680-2800 1050665\310739127.v1 1 REQUEST FOR JUDICIAL NOTICE 2 The California FAIR Plan Association (“CFP”) requests that the Court take judicial notice 3 of the following matters in conjunction with CFP’s Motion for Summary Judgment or 4 Alternatively Summary Adjudication of Issues filed contemporaneously herewith: 5 Request 1: 6 Pursuant to Evidence Code sections 450, 452(g) & (h), and 453, the contents of the 7 following excerpts from the FAIR Plan’s August 8, 2012, rate and form filing, CDI No. 12-6223, 8 copies of which are attached hereto as Exhibit A: 9 • Filing at a Glance section and all subparts; 10 • Correspondence Summary; 11 • Disposition section reflecting approval of the new smoke damage endorsement; 12 • Objection Letter sections, with copies of the California Department of Insurance’s 13 objection letters; 14 • Form Schedule with attachment: “Smoke Damage Endorsement – DP 0001E – 01 15 17 2013,” which was the final approved form; 16 • Supporting Document Schedules with attachments: “2009 Station Fire Smoke 17 Claims 12-14-2012,” which provided data about smoke only claims; “Responses to 18 11-20-2012 DOI Objections”; “12-14-2012 Response to DOI”; and “CFP to DOI 19 1-2013.” 20 The complete rate and form filing can be accessed through the following website 21 searching under the company name “California FAIR Plan”: 22 https://interactive.web.insurance.ca.gov/warff/index.jsp. 23 24 Request 2: 25 Pursuant to Evidence Code sections 450, 452(g) & (h), and 453, the contents of the 26 following excerpts from the FAIR Plan’s October 18, 2016, rate and form filing, CDI No. 16-6646, 27 copies which are attached hereto as Exhibit B: 28 • Filing at a Glance section and all subparts; 2 HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE Los Angeles, CA 90071-3476 213-680-2800 1050665\310739127.v1 1 • Correspondence Summary; 2 • Disposition sections reflecting the approval; 3 • Objection Letter sections; 4 • Form Schedules with attachment: “CFP DP 00 01 (06017) – clean rev 1-18-2017,” 5 which was the final approved form; 6 • Supporting Document Schedules with Filing Memorandum and attachments of 7 prior policy forms; and 8 • Superseded Schedule Items with attachments: “CFP 00 01 xx 17 final redlined,” 9 which shows the addition of the “direct physical loss” definition and “DP 0001 – 10 Current Policy to be Replaced,” the superseded policy form. 11 The complete rate and form filing can be accessed through the following website 12 searching under the company name “California FAIR Plan”: 13 https://interactive.web.insurance.ca.gov/warff/index.jsp. 14 15 Request 3: 16 Pursuant to Evidence Code sections 450, 452(d), the First Amended Complaint and 17 Demand for Jury Trial filed in this action on August 23, 2022, Santa Cruz Superior Court Case 18 No. 22CV00631. A true and correct copy of the First Amended Complaint is attached hereto as 19 Exhibit C. 20 21 Respectfully submitted, 22 23 DATED: May 9, 2024 HINSHAW & CULBERTSON LLP 24 By: 25 SPENCER Y. KOOK Attorneys for Defendant 26 CALIFORNIA FAIR PLAN ASSOCIATION 27 28 3 HINSHAW & CULBERTSON LLP 350 South Grand Ave., Suite 3600 DEFENDANT’S REQUEST FOR JUDICIAL NOTICE Los Angeles, CA 90071-3476 213-680-2800 1050665\310739127.v1 RJN Exh. A SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Filing at a Glance Company: California FAIR Plan Association Product Name: Dwelling Fire & Allied Lines State: California TOI: 01.0 Property Sub-TOI: 01.0002 Personal Property (Fire and Allied Lines) Filing Type: Form Date Submitted: 08/08/2012 SERFF Tr Num: PERR-128623184 SERFF Status: Closed-Approved State Tr Num: 12-6223 State Status: Approved Co Tr Num: CAFP-PP-DW-CA-12-01-F Effective Date 01/01/2013 Requested (New): Effective Date 01/01/2013 Requested (Renewal): Author(s): Reviewer(s): Mary Hiltgen (primary), Jerome Tu Disposition Date: 01/29/2013 Disposition Status: Approved Effective Date (New): 01/29/2013 Effective Date (Renewal): 01/29/2013 PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F General Information Project Name: CAFP-PP-DW-CA-12-01-F Status of Filing in Domicile: Pending Project Number: CAFP-PP-DW-CA-12-01-F Domicile Status Comments: This is the domicile state. Reference Organization: N/A Reference Number: N/A Reference Title: N/A Advisory Org. Circular: N/A Filing Status Changed: 01/29/2013 State Status Changed: 01/29/2013 Deemer Date: 10/16/2012 Created By: Sandra Sedano Submitted By: Ines Piquet Corresponding Filing Tracking Number: N/A Filing Description: On behalf of the California FAIR Plan Association (the “FAIR Plan”), we submit this form filing for its Personal Dwelling Fire Program. The FAIR Plan is introducing a new amendatory endorsement, DP 0001E. This endorsement clarifies coverage by defining smoke damage. In addition, it limits coverage based on the distance from the fire and the timeliness of the reporting of the claim. The FAIR Plan wants to continue to pay legitimate claims while limiting unsubstantiated claims that are reported long after the fire has been extinguished. These claims require a large amount of expense to investigate while ultimately resulting in typically no payment or in rare cases little compensation to the insured. The new endorsement will be mandatory on all dwelling fire policies effective January 1, 2013. While this form restricts coverage, the FAIR Plan is not proposing any rate adjustments associated with the endorsement. Although the FAIR Plan anticipates a reduction in expenses associated with meritless smoke claims, there will be a negligible reduction in losses. The proposed endorsement is similar to those filed and approved for Fidelity National Property and Casualty Insurance Company filing number 10-8337 and CSE Safeguard Insurance Company filing number 12-2959. Enclosed is authorization for Perr&Knight to submit this filing on behalf of the Company. All correspondence related to this filing should be directed to Perr&Knight. The Company has prepared the form contained in this filing. If there are any requests for additional information, we will forward the request immediately to the Company contact. The Company’s response will be submitted to your attention as soon as we receive it. Company and Contact Filing Contact Information Sandra Sedano, State Filing Analyst ssedano@perrknight.com 401 Wilshire Boulevard 310-889-0993 [Phone] Suite 300 Santa Monica, CA 90401 PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Filing Company Information (This filing was made by a third party - perrandknightactuaryconsultants) California FAIR Plan Association CoCode: State of Domicile: California 3435 Wilshire Boulevard, Suite Group Code: Company Type: 1200 Group Name: State ID Number: Los Angeles, CA 90010 FEIN Number: 95-2553538 (213) 252-2352 ext. [Phone] PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Filing Fees State Fees Fee Required? No Retaliatory? No Fee Explanation: State Specific Variance Requested? (Yes/No): No PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Correspondence Summary Dispositions Status Created By Created On Date Submitted Approved Jerome Tu 01/29/2013 01/29/2013 Objection Letters and Response Letters Objection Letters Response Letters Status Created By Created On Date Submitted Responded By Created On Date Submitted Pending Mary Hiltgen 12/05/2012 12/05/2012 Sandra Sedano 12/14/2012 12/14/2012 company response Pending Mary Hiltgen 11/20/2012 11/20/2012 Sandra Sedano 11/28/2012 11/28/2012 company response Amendments Schedule Schedule Item Name Created By Created On Date Submitted Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 01/22/2013 01/22/2013 INSURED AGAINST REPLACED Supporting Mark-up Sandra Sedano 01/22/2013 01/22/2013 Document Supporting Response to CDI on 1-22-13 Sandra Sedano 01/22/2013 01/22/2013 Document Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 10/16/2012 10/16/2012 INSURED AGAINST REPLACED Supporting Mark-up Sandra Sedano 10/16/2012 10/16/2012 Document Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 10/15/2012 10/15/2012 INSURED AGAINST REPLACED Supporting Mark-up Sandra Sedano 10/15/2012 10/15/2012 Document Form AMENDATORY ENDORSEMENT-SMOKE DAMAGE/PERILS Sandra Sedano 09/20/2012 09/20/2012 INSURED AGAINST REPLACED Supporting Mark-up Sandra Sedano 09/20/2012 09/20/2012 Document PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Filing Notes Subject Note Type Created By Created On Date Submitted Status of filing Note To Reviewer Sandra Sedano 01/04/2013 01/04/2013 Status of filing Note To Reviewer Sandra Sedano 11/15/2012 11/15/2012 RE: Status of Filing Note To Filer Jerome Tu 09/11/2012 09/11/2012 Status of filing Note To Reviewer Sandra Sedano 09/10/2012 09/10/2012 PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Disposition Disposition Date: 01/29/2013 Effective Date (New): 01/29/2013 Effective Date (Renewal): 01/29/2013 Status: Approved Comment: Only the changes specifically indicated in the application set forth above, as it may have been amended, are approved. Nothing in this letter shall constitute approval of any other application, whether incorporated by reference, or filed prior or subsequent to the application set forth above. The insurer shall implement this approval with the same effective date for both new and renewal business and shall offer this product to all eligible applicants as of the implementation date. This approval shall continue to have full force and effect until such time as a subsequent change for the referenced lines or programs may be approved or ordered by the Insurance Commissioner. If any portion of the application or related documentation conflicts with California law, that portion is specifically not approved. Policy forms and underwriting guidelines included in this filing were reviewed only insofar as they relate to rates contained in this filing or currently on file with the California Department of Insurance. This approval does not constitute an approval of underwriting guidelines nor the specific language, coverages, terms, covenants and conditions contained in any forms, or the forms themselves. The Commissioner may at any time take any action allowed by law if he determines that any underwriting guidelines, forms or procedures for application of rates, or any other portions of the application conflict with any applicable laws or regulations. Rate data does NOT apply to filing. Schedule Schedule Item Schedule Item Status Public Access Supporting Document Prior Approval Rate Application Yes Supporting Document Letter of Authorization Yes Supporting Document (revised) Mark-up Yes Supporting Document Mark-up Yes Supporting Document Mark-up Yes Supporting Document Mark-up Yes Supporting Document Mark-up Yes Supporting Document Mark-up Yes Supporting Document (revised) 2009 Station Fire Smoke Claims Yes Supporting Document 2009 Station Fire Smoke Claims Yes Supporting Document Responses to 11/20/12 DOI Objections Yes Supporting Document Response to December 5, 2012 objection letter and Yes December 13, 2012 conference call PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Schedule Schedule Item Schedule Item Status Public Access Supporting Document Response to CDI on 1-22-13 Yes Form (revised) AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED Form AMENDATORY ENDORSEMENT-SMOKE Yes DAMAGE/PERILS INSURED AGAINST REPLACED PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Objection Letter Objection Letter Status Pending company response Objection Letter Date 12/05/2012 Submitted Date 12/05/2012 Respond By Date 12/12/2012 Dear Sandra Sedano, Introduction: Please refer to the attached correspondence. Sincerely, Mary Hiltgen, CPCU, AU Associate Insurance Rate Analyst California Dept. of Insurance Rate Regulation Branch - LA3 Conclusion: Sincerely, Mary Hiltgen PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM STATE OF CALIFORNIA Dave Jones, Insurance Commissioner DEPARTMENT OF INSURANCE 300 SOUTH SPRING STREET LOS ANGELES, CA 90013 (213) 346-6692 (213)346-6824 (FAX) MHiltgen@insurance.ca.gov SENT VIA SERFF December 5, 2012 Perr & Knight Ms. Sandra Sedano, Filing Analyst 401 Wilshire Blvd. Ste. 300 Santa Monica, CA 90401 SUBJECT: CDI File Number: 12-6223 ISO File Number: CAFP-PP-DW-CA-12-01-F Line of Insurance: Personal Fire Organization California Fair Plan Form Filing: Dwelling Form/DP 0001E (10/12) Dear Ms. Sedano: Thank you for your recent correspondence dated November 28, 2012, via SERFF, in reference to the above filing. Please review the following objections: 1. SMOKE DAMAGE CLAIMS - LOSSES REPORTED - LESS THAN OR EQUAL TO 45 DAYS Please refer to the 2009 Station Fire Exhibit submitted via SERFF. Line (b) of the exhibit indicates that for claims reported later than 45 days and greater than a proposed proximity limit of 5 miles, the claims expense = $23,223. The amount represents only 6% of the total paid expense of <=45 days or 0.8% of the total paid expenses. The claim expenses are only 6%, yet 93% of the losses are excluded; the savings are not significant when compared to the number of claims that are excluded (93.0%). This provision appears to be unfair and unreasonable, as well as imposes inequitable treatment of insureds who expect to be indemnified under their CFP policy. Please note that neither Fidelity National P&C Insurance Company nor CSE Safeguard Insurance Company’s filings (referenced in your correspondence dated November 28, 2012) included proximity limits of any distance. Please delete the proximity limit of greater than 5 miles with respect to smoke damage claim losses reported less than or equal to 45 days. Consumer Hotline (800) 927-HELP • Producer Licensing (800) 967-9331 Page 2 2. SMOKE DAMAGE CLAIMS – LOSSES REPORTED AFTER 45 DAYS The filed exhibit suggests that if smoke damage claims reported over 45 days and over 5 miles would limit losses to $500; however, the endorsement excludes coverage in this situation so that the 83.3% of losses excluded is actually 100%. The $500 cap in combination with the filed proximity limit appears to be unfairly discriminatory to CFP insureds. Please refer to #3 below. 3. $500 LIMITATION ON SMOKE DAMAGE CLAIMS According to the CFP’s 2009 Station Fire Exhibit, the average loss payment with less than 5 miles from the fire is $795.00. The $500 limit would eliminate valid claims and impose a limit that appears too low, much lower than the norm. In your correspondence dated November 28, 2012, two company filings, Fidelity National P &C Company, 10-8337, and CSE Safeguard Insurance Company, 12- 2959, were referenced. Both companies capped smoke losses reported after 45 days to $2500.00. Most recently, the Interinsurance Exchange of the Auto Club, CDI #12-6750, provided a $5000 limit and a time limit of 90 days, significantly greater than the proposed CFP filing. As the average loss payment = $795.00, the CFP should consider implementing a higher cap, a reasonable amount would be as low as $1000.00 and up to $2500.00 when considering that several companies have a $2500 limit(cap). (Refer to the following CDI File Numbers: 12-6750, 12-6540, 12-2959, 11-9474 and 10-8337). Please advise. 4. STATION FIRE CLAIM EXPENSES The data provided to the CDI via the Station Fire exhibit is based on one catastrophic wildfire event. That event is not necessarily representative of all wildfires in California nor does the claim expense data represent all catastrophic wildfires in this state. Although the CFP’s claim expenses of $2.5 million appear to be high, those expenses are the result of only one event, not several. In future wildfire events, those claim expenses may be considerably less, without the proposed significant restriction in coverage to insureds. Further, please note that actuaries review claims expenses in the promulgation of company base rates. 5. PROJECTED SAVINGS TO CLAIM EXPENSES Please provide supporting data indicating the projected savings to claim expenses by the imposition of a $500 cap for claims reported over 45 days and a proximity of less than 5 miles. By placing a $500 limit, how much of the $1,816,352 expense would be eliminated or would the expense continue to be similar? Page 3 Should the CFP believe a conference call with the CDI may clarify the issues with the filing, we are willing to schedule one at a convenient time for all parties. Please advise a date and time to discuss the filing if feasible. The filing is considered incomplete and appears to violate CIC Section 10100.2(a) (1). In order to continue our review of the above referenced filing, please provide the requested revisions and supporting data by December 12, 2012. Sincerely, Mary Hiltgen Mary Hiltgen, CPCU, AU Associate Insurance Rate Analyst California Department of Insurance Rate Regulation Branch – RRFLA3 (Los Angeles) SERFF Tracking #: PERR-128623184 State Tracking #: 12-6223 Company Tracking #: CAFP-PP-DW-CA-12-01-F State: California Filing Company: California FAIR Plan Association TOI/Sub-TOI: 01.0 Property/01.0002 Personal Property (Fire and Allied Lines) Product Name: Dwelling Fire & Allied Lines Project Name/Number: CAFP-PP-DW-CA-12-01-F/CAFP-PP-DW-CA-12-01-F Objection Letter Objection Letter Status Pending company response Objection Letter Date 11/20/2012 Submitted Date 11/20/2012 Respond By Date 12/04/2012 Dear Sandra Sedano, Introduction: Please refer to the attached correspondence. Also, please note that the CDI is primarily concerned about the use of a Proximity Limit and and the very low coverage limit. Sincerely, Mary Hiltgen, CPCU, AU Associate Insurance Rate Analyst California Dept. of Insurance Rate Regulation Branch - LA3 Conclusion: Sincerely, Mary Hiltgen PDF Pipeline for SERFF Tracking Number PERR-128623184 Generated 06/24/2021 03:04 PM STATE OF CALIFORNIA Dave Jones, Insurance Commissioner DEPARTMENT OF INSURANCE 300 SOUTH SPRING STREET LOS ANGELES, CA 90013 (213) 346-6692 (213)346-6824 (FAX) MHiltgen@insurance.ca.gov SENT VIA SERFF November 20, 2012 Perr & Knight Ms. Sandra Sedano, Filing Analyst 401 Wilshire Blvd. Ste. 300 Santa Monica, CA 90401 SUBJECT: CDI File Number: 12-6223 ISO File Number: CAFP-PP-DW-CA-12-01-F Line of Insurance: Personal Fire Organization California Fair Plan Form Filing: Dwelling Form/DP 0001E (10/12) Dear Ms. Sedano: Thank you for the above referenced application. In order to continue our review, please note the following: 1. STATEWIDE RATE IMPACT The Fair Plan states, “These claims require a large amount of expense to investigate while ultimately resulting in typically no payment or in rare cases little compensation to the insured.” Further, the Fair Plan states, “Although the Fair Plan anticipates a reduction in expenses associated with meritless smoke claims, there will be a negligible reduction in losses.” The Department requires supporting data as follows: a) Provide supporting experience data for the peril of Smoke for the past 5 years and indicate the amount that would be excluded under this endorsement (proximity, timeliness, $500 limit). b) How many unsubstantiated claims have been reported to the Fair Plan long after the fire has been extinguished? What is the total claim expense associated with the unsubstantiated claims? c) As this endorsement restricts coverage, please calculate the rate impact. 2. PROXIMITY The Department is concerned with the proximity limit. In the initial filing, the California Fair Plan imposed a ½ mile limitation on coverage for the peril of Smoke. Subsequently, the “Plan” changed the ½ mile limitation to a 2 mile Consumer