Posted on 03/23/2024 4:36:10 PM PDT by Robwin
California's insurance commissioner Ricardo Lara spoke out after the state's largest home insurance provider announced that it would discontinue coverage for tens of thousands of policies this summer.
"This is a real crisis," Commissioner Lara told KABC in an interview Friday.
The commissioner said he wants to investigate State Farm's finances, but warned that regulators can't go too far, or else they would risk pushing companies out of California entirely.
"Insurance companies are not like utility companies," he told KABC. "By law, they don't have to be here, and when we try to overregulate, we'll see what happened after the Northridge earthquake, when the legislature came in and tried to overregulate, and they no longer write earthquake insurance in California."
(Excerpt) Read more at foxbusiness.com ...
Every time there’s a disaster the government shows up with the same sign... “We’re from the government and we’re here to help”. And it costs us millions. So why do we need insurance.
Any insurance policy that covers something other than a person’s death has substantial exposure to both the moral hazard of insurance fraud and the problem of idiotic government regulation. The whole process breaks down when the fair principles of contract law are eradicated for political reasons.
they probably wanted to just exclude the whole non-farm counties in CA but the regulators said that was not allowed.
Whatever, I have no love for any ins company with “farm” anywhere in their name so I don’t really care
I wonder how feasible it would be under California law to establish closed insurance cooperatives to replace traditional property & casualty insurance.
Isn’t just hitting CA. Insurance has gone up across the nation.
Let me just say how beautiful California is when you see it in your rear view mirror!
Maybe the insurance companies foresee California finally breaking off and falling into the Pacific, something we were warned about 60 years ago.
Still waiting...
“...The commissioner said he wants to investigate State Farm’s finances,”
Idiocy rules supreme in Democratic circles. California is the most populous state in the union, no company pulls their business from that state without good cause. The good news is, as businesses realize they have a better chance to make money outside that state, California’s grip on rules and regulations that affect the rest of the country will die.
What he doesn't like is State Farm, like other companies, has formed a separate company for California. It's not uncommon for companies to do this in state that are shall we say, a challenge to work in.
This protects the parent company from idiots like him trying to raid the coffers.
Yeah, no kidding! My homeowners insurance went up $600 this year - even though in over 30 years, I’ve never filed a claim .
I do not have Farmer’s but my neighbor does - and his homeowner’s insurance shot up as well - no claims in over 20 years. The increase was so much he called Farmer’s to ask what was going on - they told him there were so many claims from flooding and fires last year that everyone’s rate increased dramatically to pay for it all.
A local bar/restaurant owner was on my radio show (So Cal) the other day - she said her usual insurance was $14,000/year for her business. Her insurance company fled the state - she was able to get two quotes: One was for $55,000, the other for $95,000. She said with that and worker’s comp, she will be out of business.
Already happening in Florida
ATTN: California Insurance Commissioner Ricardo Lara
YOU VOTED FOR THE ECONOMIC DESTRUCTION OF CALIFORNIA
Worker’s comp went up in CA because of the widespread fraud. It’s everywhere and for a long time companies didn’t fight it because they though it would be cheaper to ignore it, settle, and look the other way, and now the fraud is out of control in CA.
Follow-up with my doctor showed severe iron deficiency anemia, gallstones with a 17 mm primary biliary duct and now a juxtapleural pulmonary node. When it rains it pours. The anemia was due to a gastric bleed. I fixed that by eliminating every blood thinner in my supplement regiment and any use of ibuprofen. A colonoscopy resulted in 7 precancerous polyps being snipped out and the endoscopy found a healing duodenal ulcer that was likely the source of the bleed. Monday brings a surgical consult to remove my gallbladder. April brings a CT to investigate the node on my right lung. No end to the goblins that arose from that insurance company blood test.
When it is all resolved, I might be insurable again. In the interim, I'll be a lot lighter in the wallet.
IMHO, State Farm just realizes that it is only a matter of time before CA is reacquired by Mexico and doesn’t want to deal with that headache...
State Farm needs to take rate to be able to operate in the state- they are a for profit company - and they cannot afford to do homeowner business there anymore. Auto has tightened up as well with them requiring any new foreign drivers prove they have had a license in the country of origin for at least 2 years. This means providing an motor vehicle record from the country of origin translated into English.
In CA, they ask if you have dogs and breed, which brings a lot of lawsuits. Now MAY hit you soon with EV? Neighbors have EV?
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