California consumer advocacy group Consumer Watchdog has submitted a new proposal to the state attorney general’s office regarding health insurance. Last year, the organization was a driving force behind new auto insurance regulations that pout caps on premiums. Now, the group is backing legislation that would require the state’s health insurers to wait for approval from regulators before collecting premiums from higher rates. Consumer Watchdog is awaiting the approval from the state’s attorney general before it begins to collect the 505,000 signatures needed to bring the issue before the state…
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California awarded federal grants to make insurance rate review process more efficient
The state of California has been struggling to rein in one rampant rate increases coming from a number of health insurance companies. High rates are spurred by rising costs in health care and the state has been having trouble coping with the sheer number of rate proposals coming in. Short falls in the rate review process can, sometimes, put consumers at unnecessary financial risk. To help the state establish a more efficient review process, the federal government has awarded California with more than $4.3 million in grants. The California Department…
Read MoreS&P downgrades Californian insurers while Commissioner Jones insists the companies are financially sound
Rating agency Standard & Poor’s seems to be in the grips of a downgrading frenzy as the agency downgrades the credit ratings of five of California largest insurance companies. The move comes on the heels of the agency’s downgrading of the federal government’s credit rating, which sparked controversy throughout the country and drove many businesses to re-evaluate their place in the commercial market. S&P downgrade of the state’s insurers could have major implications for the industry, but Insurance Commissioner Dave Jones says that there should be no doubt about the…
Read MoreCalifornia District Attorneys awarded million in grants to fight insurance fraud
California’s Department of Insurance is issuing over $3 million in grants to the state’s District Attorneys in an effort to battle the spread of fraudulent disability and health claims. The state has been wracked with fraud for several years, a fact that Insurance Commissioner Dave Jones has labored to rectify. According to Jones, the grants will be used to fun investigations and prosecutions as the state government looks to crack down on insurance fraud. Jones hopes that the move will also dissuade individuals from committing fraud, knowing that District Attorneys…
Read MoreNew regulations take effect in California, drawing the ire of the state’s insurance companies
New homeowner’s insurance regulations have taken effect in California. According to Insurance Commissioner Dave Jones, the new regulations will offer new protections to consumers against being under insured. Part of the aim of the new regulations is to improve upon the state’s standard regarding natural disasters and catastrophic damage to homes. Furthermore, homeowners will no longer be able to purchase “too little” coverage, as the new regulations mandate a minimum level of insurance coverage based upon the property being insured. The regulations have ruffled the feathers of the Association of…
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