Credit score ban for insurance premium calculation leads to massive lawsuit

Insurance premium calculation - law - gavel

American Property Casualty Insurance Association has filed a suit against the Washington regulator. The American Property Casualty Insurance Association (APCIA) has filed a lawsuit against the regulator in Washington state over the ban against using credit scores for insurance premium calculation. Commissioner Mike Kreidler issued an administrative ban against using that factor for underwriting policies. The office of Commissioner Mike Kreidler defended its ban against using credit scores for insurance premium calculation. It released a statement calling the practice “inherently unfair” and that the ban protects customers. The commissioner has…

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Cyber insurance coverage critical as Homeland Secretary warns over ransomware

Cyber insurance coverage - cyber security

DHS Secretary Alejandro Mayorkas said coping with ransomware will become a top priority. Cyber insurance coverage importance has never been clearer than it became when Department of Homeland Security (DHS) Secretary Alejandro Mayorkas warned that dealing with ransomware will become a top priority. This has only underscored the rising threat of cyberattacks and the data-scrambling malicious software. Ransomware is a type of malicious software that locks an individual, company, organization or government out of its files and networks until a payment is made. This type of attack has been rapidly…

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Florida property insurance market is circling the drain, says Citizens CEO

Florida Property Insurance - Homes in Florida

The state’s insurer of last resort has bloated to an enormous size as the market spirals downward. The Florida property insurance market has reached a critical state, said the CEO of Citizens, the state’s insurer of last resort. The cost of coverage has caused Citizens to become bloated, with thousands of new homeowners signing on every week, slashing chunks out of the market. The result is that the market as a whole in the state has reached a point in which it is collapsing. “The reality is the marketplace in…

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California auto insurance refunds expected as insurers pay back pandemic windfall profits

California auto insurance refunds - person with money

Insurance Commissioner Ricardo Lara puts a stop to the added profits insurers are taking in from COVID-19 changes. Millions of drivers are likely to receive additional California auto insurance refunds following Insurance Commissioner Ricardo Lara’s recent action to require insurers to pay back pandemic windfall profits. The commissioner received applause from consumer advocate and economic ethics groups. The Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ) both applauded Lara for his decision to send pandemic windfall profits back to consumers through further California auto insurance refunds.…

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UnidosUS advocacy group gets massive $750,000 grant from State Farm

UnidosUS Receives Grant - US Dollars

The insurance company recently awarded the Latino civil rights organization the funds for education initiatives. State Farm recently awarded UnidosUS with a $750,000 grant to fund four education initiatives: Avanzando Through College, Early Escalera, Padres Comprometidos, and CASA. The civil rights and advocacy organization is formerly known as the National Council of La Raza. Beyond the education projects, State Farm’s grant will also be used in support of the UnidosUS Esperanza/Hope Fund. All the supported programs seek to support and boost educational equity for Latino students. They also work to…

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Allstate issues caution against contractor and insurance fraud following severe weather

Insurance fraud - home repair - hammer and nail

The insurer has shared tips to its policyholders to help protect themselves against scams. The severe weather that struck the southern and middle states has provided a considerable opportunity for scammers interested in ripping people off through contractor and insurance fraud. Allstate is hoping that more people will learn its tips to keep themselves safe from scammers. The insurance company has issued these tips to equip Americans with the information they need to spot scams and stay away from them. Insurance fraud is already estimated to have reached about $40…

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Climate change is likely increasing flood insurance rates quite a bit this year

Increasing flood insurance rates - Flooding in neighborhood - shops & cars

The federal government is examining the cost of coverage on April 1, with data suggesting premium hikes. Much of the country is expected to see increasing flood insurance rates this year in order to cover rapidly rising costs resulting from climate change, according to new data that will create a substantial political struggle for the Biden administration. NFIP would need to raise its premiums by four times for covering high-risk homes in floodplains. The National Flood Insurance Program (NFIP) will need to send its premiums sky high in certain areas…

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