Tag: policyholders

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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State Farm Faces Setback as Class Action Lawsuit Progresses in Federal Court

John B.
State Farm Lawsuit Advances

State Farm Lawsuit Advances After Motion to Dismiss Denied In a significant legal development, U.S. District Judge Virginia Kendall has denied State Farm’s motion to dismiss a class action lawsuit, allowing the case to proceed in the U.S. District Court for the Northern District of Illinois. The lawsuit accuses the insurance giant of systematically undervaluing and underpaying policyholders for totaled vehicles, raising concerns among policyholders and industry analysts alike. Challenges to State Farm’s Valuation Methods and Practices The lawsuit, originally filed in March 2022, challenges State Farm’s vehicle valuation methods,…

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State Farm Legal Showdown: Exposing the Hidden Risks of Non-Owned Vehicles

H. Cutner
State Farm Insurance Court Ruling

State Farm and Their Legal Battle Over a Loaner Car In a developing legal case, a former sports radio host finds themselves embroiled in a dispute with the insurance company over liability coverage following a 2022 motor vehicle accident. The incident occurred while the host was driving a vehicle owned by a local dealership during their employment at a media group. The vehicle was provided as part of a promotional agreement or an informal perk related to their work at the station. Insurance Coverage Dispute State Farm argues that they…

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Citizens Insurance in Florida: A Balancing Act for Solvency

Marc
citizens insurance and florida home insurance balance

The Challenge of Solvency for Citizens Insurance Florida’s Citizens Insurance is at a critical juncture. Initially created as the state-backed insurer of last resort, Citizens has evolved into Florida’s largest insurer, currently holding over 1.2 million policies. This is far from its intended goal of 400,000 to 500,000 policies, and the company now faces significant challenges in maintaining financial solvency, particularly with the looming threat of hurricanes. Citizens’ Policy Shortfall: Aiming for 400,000, Holding Over 1.2 Million Citizens Insurance was designed to provide coverage when private insurers could not, yet…

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California Homeowners Face 34% Rate Hike as Allstate Follows State Farm’s Lead in Insurance Shakeup

Archie Walsh
California Homeowners insurance rates going up

LOS ANGELES: In a move that mirrors State Farm’s recent actions, Allstate is seeking a substantial increase in its California homeowners insurance premiums. First reported by the Los Angeles Times, Allstate aims to raise rates by an average of 34%, marking the largest rate hike in the state this year. If approved by the California Department of Insurance, this increase will impact over 350,000 policyholders. This latest development follows State Farm’s request for significant rate increases, including a 50% hike for renters and a 30% hike for homeowners. The six-largest…

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