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…
Read MoreReport 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,…
Read MoreIBHS gives recommendations to protect from Southern California faces wildfires
The Insurance Institute for Business & Home Safety (IBHS) has released a statement reminding property owners in Southern California that the Santa Ana winds are bringing a serious risk of wildfires with them, and that certain precautions should be taken. The National Weather Service has announced that the region could be affected by another significant shove by the winds, which can gust at more than 60 miles per hour. According to an IBHS senior Scientist, Dr. Steve Quarles, “Santa Ana winds are generally warm and dry, creating tinderbox conditions, but…
Read MoreCalifornia 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…
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