State Farm’s Homeowners Rate Increase, the California Legislature & a California Court

The California Assembly wants the California Department of Insurance to pause State Farm’s rate increase and do a market conduct examination to be completed before any rate increases can be granted.

State Farm has asked for a homeowners rate increase of between 15% and 38% depending on the area of risk. The department has given State Farm preliminary approval. In April, the CDI issued State Farm a 17% hike.

The CDI says it is investigating the company’s response to claims from the Los Angeles wildfires last year. Consumer groups are accusing State Farm of issuing low-ball offers, slowing down the claims process and denying claims.

Assemblymember John Harabedian wants all this done in 60 days and wants the findings made public.

“If they receive this second rate hike come October, that'll bring their total rate increases to 33%. And that's simply unacceptable,” Harabedian said. “I don't know anybody whose wages have increased 33% over the last year or even over the last five years, to be perfectly honest with you.”

In another matter related to State Farm’s requested increase, Judge Karl Seligman denied a push by CDI and State Farm to have pretrial matters heard in private. The judge also said no to a push to delay the claims practices portion of the lawsuit until the rate issue is resolved.

Source link: Insurance Business America — https://bit.ly/4g2wXr8

Source link: Insurance Business America — https://bit.ly/46j92QY