Category: California Insurance

California’s Insurer of Last Resort on the Brink Amid Wildfire Crisis

Angela Linders
california fair plan

Catastrophic Wildfires Upend Insurance Landscapes The California Fair Access to Insurance Requirements (FAIR) Plan, established as a safety net for homeowners in high-risk fire zones, faces an unprecedented threat of insolvency amid a flurry of catastrophic wildfires and increasing claims. This predicament has sparked intense scrutiny and discussions on sustainable insurance strategies while leaving many to wonder about the future of fire insurance availability in the state. The Increasing Burden on California FAIR Plan With an exodus of insurers from California’s market, the FAIR Plan has swelled to double its…

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State Farm Releases Non-Renewal Numbers Amid California’s Deepening Home Insurance Crisis

Angela Linders
Depositphotos - auto insurance - State Farm Sign

State Farm “Restructures” California Portfolio The company made it official, in a move to ensure the financial health of its operations within California, State Farm General Insurance Company is set to scale back its insurance offerings in the state. With an estimated 72,000 policies facing non-renewal, customers across California are poised to feel the pinch as they seek alternative coverage solutions. Starting July 3, 2024, State Farm General will cease renewing approximately 30,000 homeowners, rental dwelling, residential community association, and business owners policies, citing the necessity to sustain adequate claims-paying…

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California’s Most Significant Insurance Overhaul in 30 Years

Loreen
california insurance

California is at the cusp of a seismic shift in its insurance landscape, a change that aims to reform and revitalize the state’s insurance market. Insurance Commissioner Ricardo Lara unveiled a sweeping set of regulatory reforms poised to overhaul Proposition 103—the foundation of California’s insurance regulations for the past three decades. Commissioner Lara’s Progressive Steps to Insurance Overhaul The upcoming reforms come as part of the commissioner’s ambition to achieve a full-scale reform by year’s end for both home and auto insurance. At the heart of Lara’s reformation strategy lies…

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Allstate Changes Down Payment After Insurance Settlement

Logan B.
allstate downpayment reinstated

Allstate, the insurance giant based in Northbrook, Illinois, has made a significant change to its down payment policy for new auto insurance policies. The move comes after a settlement with the California Department of Insurance regarding the insurer’s rate increase application. The Former Down Payment Restriction In July 2022, Allstate began requiring consumers to pay a 50% down payment on new auto policies. This policy represented a substantial upfront cost for consumers, given that the average annual cost for car insurance in California ranges from $1,500 to $1,999, according to…

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California Insurance Market Seeks Solutions Amid Homeowner Policy Crisis

Loreen
California insurance market health

California’s insurance landscape is poised for a substantial rewrite as authorities deal with the implications of devastating wildfires and market instability. With a pivotal public hearing on the horizon, Insurance Commissioner Ricardo Lara spearheads the effort to address the frustrations of both homeowners and insurers. The Plight of California Homeowners and Insurers Amid the ashes of devastating wildfires, Californian homeowners have faced soaring insurance premiums and widespread policy cancellations, driving the need for regulatory reform. A proposed overhaul by Commissioner Lara aims to streamline rate increase approvals and clarify regulations…

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