In this Feb. 18, 2020, file photo, California Insurance Commissioner Ricardo Lara speaks at a state Capitol news conference in Sacramento, Calif. State Farm General Insurance Group is reducing exposure to the California insurance market, which has been a growing trend among insurance carriers. As part of its exposure reduction efforts, State Farm has announced that it will be cancelling approximately 42,000 apartment insurance policies.
State Farm’s letter goes on to express a need to increase rates more rapidly. Rate increases in California can often take up to 3-years for final approval due, in part, to regulatory red-tape and intervenors that challenge and delay requested rate increases by acting as consumer watchdogs.
Because of several factors, there are only a handful of preferred markets for apartment buildings that remain at reasonable rates. There is no certainty how long the existing insurance markets will be able to write policies, and to make matters worse, with the huge flood of owners looking for coverage, it will stress the system to a possible breaking point.
The California FAIR Plan Association was established to meet the needs of California homeowners unable to find insurance in the traditional marketplace. The FAIR Plan is not a state agency, nor is it a public entity. There is no public or taxpayer funding of the FAIR Plan. The FAIR Plan is a syndicated fire insurance pool comprised of all insurers licensed to conduct property/casualty business in California.
Source: News Formal (newsformal.com)
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: sdut - 🏆 5. / 95 Read more »
Source: AP - 🏆 728. / 51 Read more »
Source: ksatnews - 🏆 442. / 53 Read more »
Source: wjxt4 - 🏆 246. / 63 Read more »
Source: 10News - 🏆 732. / 50 Read more »
Source: latimes - 🏆 11. / 82 Read more »