Overview
- Lawmakers filed Senate Bill 492 on Saturday as a last‑minute compromise that abandons Gov. Gavin Newsom’s bid to limit insurers’ subrogation rights and to cap many survivor damages.
- The bill creates a Fast Pay program to speed some survivor payments but keeps the option to pursue full lawsuits and discovery for those who want it.
- SB 492 bars hedge funds and private equity from buying wildfire claims, limits certain attorney fees in insurer subrogation cases, and restricts short‑term utility CEO bonuses after large fires.
- The measure gives the agency that runs the state wildfire funds borrowing and bond authority and narrows public‑records and meeting rules for some fund proceedings, raising oversight and potential ratepayer‑repayment concerns.
- Insurance executives warned earlier that ending subrogation would raise premiums, and investors punished utility stocks after talks broke down, while survivors and consumer groups hailed the Legislature for protecting victims’ recovery rights.