Though Dave Jones and Harvey Rosenfield have traditionally collaborated, a recent issue has led to a split.
The California Insurance Commissioner, Dave Jones, and advocate from Consumer Watchdog, Harvey Rosenfield, have traditionally held very similar beliefs when it came to the industry and its insurance rates.
That said, this trend appears to have changed when it comes to the rates being charged by Allstate.
Rosenfield, who hails from Santa Monica, was the author of Proposition 103, a ballot measure from 1988, which converted the position of insurance commissioner in the state into an elected one. It also provided that official with the authority to be able to reject insurance rates that have been proposed for home, auto, and certain other forms, should they be determined to be excessive. Last year, Consumer Watchdog – with Rosenfield at the helm – attempted to broaden the regulatory authority of the commissioner to apply to the rates of health plans, as well, but voters opposed it.
That said, a recent issue of certain Allstate insurance rates has now brought Rosenfield against the commissioner.
According to Consumer Watchdog, Allstate Insurance Co. has been overcharging for the policies that they are selling for homeowners, rental, and condominium coverage. The consumer advocate group filed a petition with the California Insurance Department, back in July 2014, claiming that premiums were too high, and calling for the commissioner to hold hearings. Rosenfield said that for every $1 of homeowners insurance that Allstate collected in premiums, it was paying out only $0.44, last year.
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In February, Commissioner Jones stated that there had been “insufficient evidence” to support the claims by Consumer Watchdog that stated that the rates being charged by Allstate were “excessive”. He also said that he would be requiring the insurance company to make a new rate application filing.
Since that time, there has been a fiery battle going on between Rosenfield and Jones, particularly when it came to the commissioner’s insurance rates regulation history, which Rosenfield called “lackluster”. He also stated that Jones should “change his approach or his record is going to be one of costing people more money — rather than saving them more money.”