Race Day Live California lawmakers have introduced a bill that could allow people and insurance companies to sue fossil fuel companies for damages caused by climate disasters like fires and floods.
Senate Bill 222, proposed by State Sen. Scott Wiener and State Sen. Sasha Renée Pérez, claims that oil and gas companies have misled the public about how their products worsen climate change.
The bill is designed to relieve people struggling with California’s home insurance crisis. It lets insurers recover costs from fossil fuel companies, instead of raising premiums for homeowners.
Senator Wiener believes that forcing oil companies to take responsibility will help stabilize the insurance market and support disaster victims.
This idea isn’t entirely new. California and other states have filed lawsuits against oil companies, but this bill would make it easier for residents and insurers to take similar legal action.
Environmental groups like California Environmental Voters and Extreme Weather Survivors helped shape the legislation. However, insurance companies weren’t directly involved in its development.
There could be challenges if the bill passes. Some U.S. insurance companies invest in fossil fuel businesses, which might complicate their willingness to sue them.
A recent report revealed that insurers had invested over $500 billion in fossil fuels in 2019. Experts suggest that states may need to require insurers to take legal action as part of any rate increases they approve.
In recent years, California’s insurance companies have reduced coverage in areas prone to disasters, saying that state regulations make it hard to stay profitable.
This has left homeowners paying higher prices for coverage or struggling to find policies. Supporters of SB222 say it will help reduce costs for both insurers and residents while holding big polluters accountable.
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The bill also allows the FAIR Plan, California’s last-resort insurance provider, to sue oil companies on behalf of policyholders. Whether the FAIR Plan will use this option remains uncertain.
The proposal comes as studies show fossil fuel companies like Exxon have downplayed their role in climate change while preparing internally for its impacts.
Over the years, lawsuits against major oil companies have emerged across the U.S., but big financial settlements remain rare.
If passed, SB222 could pave the way for Californians to recover losses from climate disasters, reduce insurance costs, and make fossil fuel companies answer for their role in the crisis.
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