Breaking News on the California Insurance Front!
Governor Newsom signed an executive order yesterday to “take swift action to address issues with the insurance market.” He asked the Department of Insurance to:
Expand Choices, Stabilize the Market
- Implement Better Rate Approval Process
- Ensure Stronger FAIR Plan
- Accelerate Implementation
In response, the Department of Insurance has implemented key regulatory elements of a new plan which include:
- Executive action by Commissioner Lara to transition homeowners and businesses from the FAIR Plan back into the normal insurance market with commitments from insurance companies to cover all parts of California by writing no less than 85% of their statewide market share in high wildfire risk communities. For example, if a company writes 20 out of 100 homes statewide, it must write 17 out of 100 homes in a distressed area;
- Giving FAIR Plan policyholders who comply with the new Safer from Wildfires regulation first priority for transition to the normal market, thus enhancing the state’s overall wildfire safety efforts;
- Expediting the Department’s introduction of new rules for the review of climate catastrophe models that recognize the benefits of wildfire safety and mitigation actions at the state, local, and parcel levels;
- Directing the FAIR Plan to further expand commercial coverage to $20 million per building to close insurance gaps for homeowners associations and condominium developments to help meet the state’s housing goals and to provide required coverage to other large businesses in the state;
- Holding public meetings exploring incorporating California-only reinsurance costs into rate filings;
- Improving rate filing procedures and timelines by enforcing the requirement for insurance companies to submit a complete rate filing, hiring additional Department staff to review rate applications and inform regulatory changes, and enacting intervenor reform to increase transparency and public participation in the process;
- Increasing data reporting by the FAIR Plan to the Department, Legislature, and Governor to monitor progress toward reducing its policyholders; and,
- Ordering changes to the FAIR Plan to prevent it from going bankrupt in the case of an extraordinary catastrophic event, including building its reserves and financial safeguards.
There will be more options, for insurance, than ever before!
I've had clients that sold a car, to pay their annual premium-No joke! A welcome relief will soon be on the horizon...We have been told we should start seeing some of these changes- by Mid-2024-Cost saving options too-So stay tuned!!
Oh and I must add-That I have the BEST INSURANCE BROKER THIS SIDE OF THE MISSISSIPPI! :) DENISE TRIPLETT OF HEBARD INSURANCE CO. 916-370-1883 Doesn't cost to get a competitive quote-more than 95% of the time, she has been able to provide more coverage-for less! She has been doing that, for me-for many years~You owe it to yourself-to see what Denise can do for you!