2023/2024 California Insurance Crisis [Solved?]

[marindependent]

Commissioner Lara unveils first wave of proposed regulatory reforms to help safeguard the integrity of the state’s insurance market​

News: 2024 Press Release

For Release: February 9, 2024
Media Calls Only: 916-492-3566
Email Inquiries: [email protected]


Commissioner Lara unveils first wave of proposed regulatory reforms to help safeguard the integrity of the state’s insurance market
As part of Commissioner Lara's Sustainable Insurance Strategy, these proposed changes pave the way for a more transparent and accountable insurance market
SACRAMENTO, Calif. — Advancing his Sustainable Insurance Strategy announced last September, Insurance Commissioner Ricardo Lara today announced the first of several regulatory rule change packages aimed at streamlining the Department’s rate approval process. The California Office of Administrative Law published that rulemaking today and the Department invites public comment in advance of a public hearing on March 26.

These proposed changes are intended to modernize the submission requirements for auto, home, business, and other property and casualty insurance rate applications, ensuring that insurance companies adhere to clear guidelines and provide comprehensive information from the outset for the Department’s review.

“Our goal is to safeguard the integrity of the insurance market comprised of consumers, homeowners, and businesses. My proposed regulations represent a crucial step towards fostering a fair, transparent, and efficient rate approval process,” stated Commissioner Lara. “By updating submission procedures and clarifying requirements for insurance companies, we aim to eliminate confusion, reduce delays, and enhance public participation in the rate-making process. This will help our Department’s experts make sure that no policyholder is paying more than is required.”

The proposed amendments aim to address critical issues surrounding insurance companies’ rate application submissions under Proposition 103. The existing regulations, created in an age of pagers and payphones, lack clarity and fail to specify the exact materials and information required in a complete rate filing application given the change in times and increased complexity of filings. This ambiguity can lead to confusion among insurance companies and delays in the review process, ultimately impacting consumers’ access to fair and appropriate insurance rates and insurers’ level of certainty on their filings and the review process.

Key highlights of the proposed regulations include:

• Clarity in Submission Requirements: Insurance companies will now have clearer instructions about what must be submitted with a complete rate application, with necessary materials and information clearly specified by regulations. This clarity will provide insurance companies with certainty regarding the documentation required for initial rate submissions.
• Front-Loading the Delivery of Key Information: The proposed regulation will eliminate lengthy exchanges between the Department and insurers about incomplete applications before the rate review process may actually begin. These amendments will also provide consumer representatives more opportunity to timely review insurer rate applications in order to decide whether to intervene in the rate review process.
• Inclusion of Criteria and Guidelines: The proposed amendments mandate what insurers must provide so the Insurance Commissioner may assess whether requested rates are appropriate and not excessive, inadequate, or unfairly discriminatory. This includes any and all criteria, guidelines, systems, manuals, models, and algorithms used to assess risks or modify coverage options, as set forth in California Insurance Code section 1861.05.

Commissioner Lara emphasized that these regulations are crucial for the effective evaluation of rate applications, enabling the Department’s experts to assess proposed rate changes accurately and promptly without compromising on quality. Moreover, these proposed amendments promote transparency by making all rate application materials public, allowing consumer representatives and regulatory authorities to review submissions in a timely manner, as set forth in California Insurance Code section 1861.07.

“We want to promote efficiency, accountability, and fairness in the property and casualty insurance market,” concluded Commissioner Lara. “We look forward to continued public input to help modernize our policies and practices so we can continue to safeguard the integrity of the insurance market.”

Commissioner Lara is now receiving public comment on the regulations. Anybody may submit written comments to the Department until March 26, 2024, at which time the Commissioner will hold a public hearing.

#ricarolara #californiainsurancecrisis #cadoi #homeinsurance #autoinsurance

[If this post does not warrant a Like, Love, Laugh, Shock, Horror, Ridicule, Etc - I do not know what does]

 

[Al3x Lee]

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• Diversity, Equity and Inclusion of Criteria and Guidelines: The proposed amendments mandate what insurers must provide so the Insurance Commissioner may assess whether requested rates are appropriate and not excessive, inadequate, or unfairly discriminatory. This includes any and all criteria, guidelines, systems, manuals, models, and algorithms used to assess risks or modify coverage options, as set forth in California Insurance Code section 1861.05.

I fixed it

[The screen opens to a bustling office scene, with a banner reading "Al3x Lee for California Insurance Commissioner" hanging in the background. Dramatic music begins to play.]

Narrator: In a world where insurance decisions impact us all, one candidate rises above the rest. Introducing Al3x Lee, the beacon of light in the murky waters of bureaucracy.

[Cut to Al3x Lee, standing confidently in front of a diverse group of people, shaking hands and smiling.]

Al3x Lee: Hello, California! I'm Al3x Lee, and I'm not your average candidate. While others talk about Diversity, Equity, and Inclusion, I actually understand what it means.

[Cut to a montage of Ricardo Lara stumbling over his words, and worse, making vague promises without substance.]

Narrator: While the other candidates struggle to comprehend the true meaning of DEI, Al3x Lee has it embedded in their DNA. (Al3x Lee uses gender neutral pronouns for maximum inclusion)

[Cut to a scene of Al3x Lee in a boardroom, surrounded by a diverse group of advisors, all nodding in agreement.]

Al3x Lee: DEI isn't just a buzzword to me. It's a way of life. As your Insurance Commissioner, I'll ensure that every decision is made with the utmost consideration for diversity, equity, and inclusion.

[Cut to a clip of a generic, stuffy-looking opponent giving a speech.]

Opponent: We need someone with experience in insurance regulations, not someone spouting off about DEI!

[Cut back to Al3x Lee, who responds with a knowing smile.]

Al3x Lee: Ah, but my friend, that's where you're mistaken. Understanding DEI is crucial in navigating the complex web of insurance policies and regulations. It's about ensuring that every Californian, regardless of their background, has access to fair and affordable insurance options.

[Cut to a cheering crowd, holding up signs that read "Al3x for DEI!"]

Narrator: Al3x Lee: the only candidate who truly comprehends the meaning of DEI. Vote for Al3x Lee for California Insurance Commissioner, because when it comes to protecting Californians, diversity, equity, and inclusion are more than just words – they're a promise.

 

[Markthebroker]

Yup. Al3x Lee as insurance czar is the only way out of this mess.

 

[Allen Trent]

Introducing Al3x Lee, the beacon of light in the murky waters of bureaucracy

sounds like this is a peril of flood & no coverage for flood on a standard policy. need to get another wing of government bureaucracy to help you out.

In a world of irony, I saw FEMA executives on our news last night in Michigan & they literally said they are here to help & that consumers need to be cautious of construction scammers------lol they are just getting here for damage from August tornadoes & straight line wins. 6 months later. I a sure there is reasonable bureaucratic reason why they are just getting here 6 months later. [EXTERNAL LINK] - DOOR-TO-DOOR | FEMA crews visiting communities to help residents apply for federal assistance following August 2023 tornadoes