From the California Business Journal newswire.
In response to Consumer Watchdog’s challenge to State Farm’s proposed rate increases on businesses’ liability and property insurance, State Farm has agreed to cut the average overall rates it charges wholesale, retail, and service businesses by 4.0% and agreed to not raise the rates paid by professional offices.
As a result of Consumer Watchdog’s efforts, over 80,000 policyholders will save $7.8 million as compared to the rates originally requested by State Farm.
In response, State Farm agreed to not hike rates for professional offices, and the California Department of Insurance has approved the 4.0% overall rate decrease for wholesale, retail, and service businesses, resulting in the $7.8 million savings. Qualifying policyholders who purchase a new policy or renew an existing one after November 15, 2016 will be eligible for these savings.
“State Farm has tried to impose excessive rates for millions of policyholders in the past several years,” said Consumer Watchdog staff attorney Jonathan Phenix. “Large and small business owners in California will now get a $7.8 million break from these overcharges, and we’re hopeful that other State Farm policyholders will soon get the rate reductions and refunds they deserve.”
Earlier this month, on August 1, 2016, Consumer Watchdog challenged the insurance rates State Farm proposed to charge for coverage of dwellings occupied by tenants. According to Consumer Watchdog’s analysis, State Farm’s overcharges in that case may reach as high as $100 million unless State Farm cuts its current rates by up to 40%.
In another proceeding involving State Farm’s renters and homeowners insurance rates, an administrative law judge recently issued a proposed decision and order recommending that Insurance Commissioner Dave Jones reject State Farm’s 6.9% overall rate hikes and order State Farm to decrease its overall rate by 7.0%. The administrative law judge also recommended that State Farm refund its homeowner policyholders over $85 million in premium overcharges from July 1, 2015 to date. Insurance Commissioner Dave Jones has not yet issued a final order adopting the proposed decision. Instead, on August 8, 2016, he referred the matter back to the administrative law judge for further briefing and evidence on whether State Farm should be required to pay interest on any refunds of excessive premiums that may be ultimately awarded, and if so, what is an appropriate interest rate.
Since 2006, Consumer Watchdog has used Proposition 103 to save State Farm policyholders over half a billion dollars. Under Proposition 103, insurance companies must justify the auto, home and business insurance rates they charge to consumers, and consumers have the right to request a public hearing to challenge rates.
Have you ever marveled at the intricate details of an iron gate or a beautifully…
Do you own or manage a high-traffic establishment? If so, then you are probably well…
Are you preparing for a new product launch? A product launch checklist is crucial for…
When you're involved in a car accident, the aftermath can be overwhelming. Between dealing with…
In a world where cyber threats are evolving at breakneck speed, the need for robust…
It was a dreary Saturday afternoon. Rain drummed against the window, a steady, monotonous rhythm…