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Commissioner Lara Moves Forward on New Insurance Rate Reforms

031924 CA Consumer Alert

Commissioner Lara Moves Forward on New Insurance Rate Reforms

August 9, 2024 —Insurance Commissioner Ricardo Lara is taking action to help fix the state’s insurance crisis as part of his “Sustainable Insurance Strategy. ” His latest action announced earlier today, which focuses on reducing unnecessary delays in the review of insurance rates, is critical to getting insurance companies back into California’s market. 

“Consumers are hurting, businesses continue to lose coverage, wildfires are ravaging our state -- and we do not have the luxury of time. I am ultimately responsible for fixing this crisis, and I am moving forward to meet my commitment to complete long-needed reforms this year.” – Commissioner Lara. 

Under Prop. 103, the Department of Insurance is responsible for doing a thorough rate review of each filing to protect consumers and ensure a competitive insurance marketplace. Insurance companies are responsible for requesting the rates they need to pay future claims and providing complete data in support of their rate requests. 
 

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With this action, Commissioner Lara is holding everyone in the process accountable – and he has been working with Governor Newsom on these long-needed changes. 

“We’ve been working closely with the Insurance Commissioner and fully support these actions to modernize the rate application processes, consistent with the timelines outlined in Prop 103. It’s part of the state’s larger package of solutions to ensure Californians have adequate access to insurance and combat market exodus that hurts consumers. These are the actions necessary to address California’s insurance crisis.”—Governor Newsom 

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Today’s action keeps California on track for completing the largest insurance reform in 30 years by December 2024. When this is complete, insurance companies will return to writing policies and giving Californians the options, that they deserve. 


For more information, please visit the California Department of Insurance website.

 


Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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