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Another California crisis that can be solved with state officials getting out of the way

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California’s home insurance market is deeply troubled. A former insurance commissioner said it’s “in chaos.” Insurance Commissioner Ricardo Lara calls it “a real crisis.” Using more colorful language, the president of a Los Angeles agency told The San Francisco Standard that “if there’s a major event” before the market is fixed, “we are in deep doo-doo.”

The muddle became even messier when State Farm announced in March that beginning on July 3, the company would, on a “rolling basis,” decline to renew “approximately 30,000 homeowners, rental dwelling, and other property insurance policies.” It will also “withdraw from offering commercial apartment policies with the non-renewal of all of those approximately 42,000 policies.”

Those able to keep their State Farm policies were hit with 20 percent rate increases.

Click to read the full article in The Orange County Register. 

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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