Tag: consumer protection

Liberty Mutual’s Subsidiary Non-Renews 17,000 Fire Policies in California Due to Technology

Ester Adams
17,000 Fire Policies Non Renewed in California Due to Technology

Liberty Mutual to Discontinue Dwelling Fire Policies In an unusual development, Liberty Mutual Fire Insurance Company, a subsidiary of Liberty Mutual, has revealed that it will not renew around 17,000 dwelling fire policies in California, citing technology-related factors rather than the increased fire risks that have been prevalent in the state. The decision, set to unfold from September through November, stems from the company’s intent to retire the “antiquated” technology previously used to manage these policies. According to filings with the California Department of Insurance, Liberty Mutual stated that “it…

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Ricardo Lara’s Reforms: Can They Save California’s Property Market from Fire Risks?

Marc
Can They Save California's Property Market from Fire Risks?

Commissioner Lara’s Reforms to Rescue California’s Property Market In a bid to rescue California’s beleaguered property market, Insurance Commissioner Ricardo Lara has announced a series of reforms aimed at addressing the growing crisis in the state’s insurance sector. The situation has reached a critical point, with many insurers either pausing or severely limiting new policies, particularly in high-risk areas prone to wildfires. The Roots of the Crisis The current crisis is partly rooted in the 1988 voter-passed Proposition 103, which mandates that insurance companies obtain approval from the California Department…

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Maryland Insurance Professionals Face Stricter Standards

H. Cutner
Maryland Insurance Professionals Face Stricter Standards

Protecting Maryland Consumers: A Closer Look at Stricter Penalties Starting October 1, consumers in Maryland will witness the implementation of more stringent penalties for unauthorized insurance activities. These legislative changes, introduced by the Maryland Insurance Administration, aims to protect consumers from fraudulent practices while ensuring that insurance professionals uphold the highest standards. Unauthorized Insurer Fines Soar: The fines for unauthorized insurers have substantially increased, with penalties rising from $50,000 to a maximum of $125,000. Higher Penalties for Dishonest Practices: Insurance producers and public adjusters indulging in dishonest or incompetent practices…

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Consumer Watchdog Demands Public Hearing on State Farm’s Proposed 30% Rate Hike

H. Cutner
Consumer Watchdog - Public hearing - California Flag - Insurance rate hike

Consumer Watchdog Digging for Dirt in State Farm’s Backyard Consumer advocacy group Consumer Watchdog has called on California Insurance Commissioner Ricardo Lara to convene a public hearing regarding State Farm’s proposed 30% hike in homeowners’ insurance rates. The group contends that the proposed increase is intended to enhance the insurer’s financial stability rather than address anticipated claims, potentially resulting in a $5.2 billion burden on consumers. Concerns Over Financial Burden Consumer Watchdog’s petition, filed under Proposition 103, mandates a public hearing on rate increases when requested by the public. The…

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California Fair Plan Under Fire for Alleged Policy Violations

G. Turner
California Fair Plan News Report

California Fair Plan Under Fire: Attorney Calls Policies “Criminally Restrictive” The California Fair Plan, designed as a last-resort insurance option for those unable to secure coverage elsewhere, is now under significant scrutiny. An Oakland attorney has spotlighted troubling issues impacting hundreds of thousands of policyholders. According to reporter Shandel Menezes from NBC San Diego, Attorney Dylan Schaffer of the Kerley Schaffer law firm has described the policies under the Fair Plan as “criminally restrictive” and asserts that selling these policies constitutes a misdemeanor under Insurance Code 2083. Schaffer claims that…

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