California insurance group battling rates under attack

California Insurance News

Consumer Watchdog has been facing criticisms regarding its latest steps. A consumer group that has backed a recent California insurance initiative and has saved residents of the state from millions of dollars in fees is now facing a new wave of fire from both Democratic and Republican lawmakers and political consultants. Critics have pointed out that Consumer Watchdog has been profiting from the new regulation. Moreover, it has also found that the special California insurance regulation is, essentially, dominated by the advocacy group. The consultants are arguing that the organization…

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AIG unit faces potential fines in California over management of fire claims

American International Group Inc. (AIG) subsidiary, New Hampshire Insurance Co., along with York Risk Services, its claims processing agent, are now facing citations for 125 violations connected with alleged improper handling of California wildfire related claims from 2008. According to California Department of Insurance (CDI) general counsel, Adam M. Cole, “The allegations in this case reflect a troubling lack of attention to consumer needs by New Hampshire Insurance Company.” CDI has stated that each of the various violations for which the insurer has been sited have to do with “an…

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California insurance regulators target GeoVera Insurance, imposing fines and requiring the company to make changes to underwriting

California insurance regulators have taken action against GeoVera Insurance Co., providers of residential earthquake insurance, this week. Regulators took notice of the company after having received a multitude of complaints from policyholders. According to these complaints, the insurer’s underwriting procedures are not as adequate as they are supposed to be. Regulators have investigated the matter and found that the insurer’s practices were indeed falling short of the state’s standards. GeoVera will be facing major changes as regulators look to make the company more compliant with state laws. The insurer will…

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California homeowners to benefit from new insurance regulations

New rules for homeowners insurance have been implemented in California to help to protect people when disaster strikes their homes. The regulations have been implemented to help consumers to make sure that they have the coverage that they need when they have been paying into an insurance policy and the time comes that they need to make a claim following a disaster. According to Amy Bach, the head of United Policyholders, following a large loss, people frequently discover that they don’t have as much coverage as “they thought they had…

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Senator Feinstein announces her support for rate controls in health insurance

U.S. Senator Dianne Feinstein (D, San Francisco) has announced that she has placed her support behind a controversial ballot measure that would give state insurance regulators the authority to approve California health coverage rates. As one of the most highly respected politicians in California, the support by Feinstein – who is now the chief spokesperson and head booster of the initiative – this high-stakes move suddenly has a great deal more weight behind it. This initiative is designed to provide effective regulation over increases in health premiums. According to an…

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New task force launched in California to fight against insurance fraud and an underground economy

The California Department of Insurance has announced that it will be joining the Department of Industrial Relations to fight against the state’s emerging underground economy. The two agencies have formed the Labor Enforcement Task Force in order to crack down on the violations against the state’s insurance and labor regulations that are rampant in this offshoot economy. Insurance Commissioner Dave Jones notes that this economy is mostly comprised of businesses who hire employees that are not fit for certain types of work. These businesses often fabricate documents concerning their employees…

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Report shows insurance is an economic player in California

A new report has shown that the property and casualty industry for California insurance is responsible for bringing billions of dollars into the state. The report, which was released by the Insurance Information Institute, showed that in 2008, that sector of the insurance industry brought $34.7 billion into the economy. It also showed that insurers are responsible for approximately 2 percent of the total gross state product for California. In fact, in that state, there are more insurance professionals employed than in any other state in the country. In 2009,…

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