Consumer groups warn lawmakers about California budget trailer law | Insurance business America
Regulators say Bill excludes the public from reviewing insurance rates
Insurance News
By Abigail Adriatico
Six consumer groups have issued a warning to California state Senate and House leaders about the potential impact of a proposed budget bill.
A letter was signed by consumer organizations Consumer Watchdog, Consumer Federation of California, Consumers for Auto Reliability and Safety, Consumer Federation of America, Consumer Protection Policy Center and The Children’s Advocacy Institute.
In it, the groups said the proposal could shorten the consumer intervention process and sacrifice the transparency that comes with public scrutiny of insurance rate increases to make them easier to approve.
“Consumer Watchdog’s consumer interventions have resulted in $6 billion in savings over the past 22 years, and the Consumer Federation of California Education Foundation’s interventions over the past 10 years have resulted in over $400 million in savings. dollars for California policyholders. “These savings are at risk as a result of this proposal,” the groups said in their letter.
According to Consumer Watchdog, the Trailer Act would exclude consumer input on rate increases below 7%, force the insurance commissioner to decide on rates with limited information, and prevent public participation before approving a rate increase due to faster increases in rates The rules, even if public challengers have the right to a public hearing, and encourage insurers to seek 7% rate increases three times per year to avoid public hearings.
“Giving insurers the right to raise rates more quickly will only result in Californians paying higher rates, not more insurance companies coming back into the market,” their letter said.
“California’s largest insurance companies recently received double-digit rate increases – 20% for State Farm that took effect in March, in addition to another 6.9% last year, three rate increases totaling 37% for last year “Farmers summed up – and companies still refuse to write new business,” they said.
They called on lawmakers to ensure insurers are required to cover people who comply with state home hardening and brush removal guidelines, fearing increased liability under the FAIR plan.
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2024-06-07 14:52:45
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