Officials in California made an announcement last week which explained a regulation change to help drivers to avoid expensive consequences when they are required to drive immediately after taking out a policy, as those who use the Low-Cost Automobile Insurance (CLCA) program will no longer have to endure the two week waiting period in order to receive their proof of policy. Currently, drivers who have just taken out CLCA coverage must either choose not to drive for the first two weeks of coverage, or they risk being caught behind the…
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S&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 MoreCommittee vote passes bill to allow state officials to halt health insurance rate increases
A bill in California has been passed through a committee vote that would give state officials the authority to regulate insurance rates by being able to reject increases that health insurance companies have proposed. The bill was approved by the Senate Health Committee by a vote of 5-3. This measure, called AB52, will now proceed to the Senate Appropriations Committee. Representatives of insurance companies, hospitals, and doctors have been working to try to diminish or end the bill, but they each did so for their own reasons. Should the bill…
Read MoreNew insurance regulations for California homeowners take effect
Despite numerous challenges, a new set of regulations for California homeowners took effect on June 27, 2011. These changes were geared toward improving the standards and training processes for the replacement value estimations of a homeowner’s insurance should a disaster occur. At the same time, the controversial alterations are still being contested by two insurance trade associations. The new cost regulations include the following (California Code of Regulations Section 2695.183 (h)): • Conditions for outlining the requirements that involve the replacement cost and value estimates designed to improve comprehensiveness, consistency,…
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