People who can't buy property insurance in California usually get it from a state-mandated insurance pool called the FAIR Plan. The pool only sells fire insurance. Homeowners have to purchase a second plan to cover other hazards.
Last month, state Insurance Commissioner Ricardo Lara ordered the pool to begin selling comprehensive policies next year.
On Friday, the California FAIR Plan Association sued, arguing the order was illegal.
They say it will result in increased costs for property insurance.
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