California Governor Newsom to Legislature — Get the Insurance Crisis Fixed!

California Governor Gavin Newsom says Insurance Commissioner Ricardo Lara’s insurance rate approval revamp is taking too long. Insurers have seen a request take a year or more and then not be approved.

Lara wants to have his plan done by the end of the year. Newsom says that’s not fast enough. He wants the California Legislature to step in and set a 60 day limit for insurers to get a decision for a rate increase request.

“We’ve got to move this process along,” Newsom said. “We can’t wait until December. We can’t. It should not take this long for emergency regulations. I almost have the temptation to do an additional executive order, but under the circumstances, I think working with the legislature on a trailer bill is more appropriate.”

Newsom made the statement late last week as more insurers added themselves to the list of those abandoning California. He’s also worried that California’s insurer of last resort, the state’s FAIR Plan now has $300 billion in exposure.

Much, much more than Newsom finds comfortable. Lara agrees that the state needs to move quickly and responded to Newsom’s statements.

“Time is of the essence,” he wrote. “We are working together with Governor Gavin Newsom and the Legislature on critical budget language that keeps us on track to get the job done, strengthen our insurance market for homeowners and businesses, and protect consumers.”

Source link: Insurance Business America —

Source link: Insurance Journal —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News