- Issue refunds, currently valued at over
$100 million, for the excess insurance premiums State Farmhad collected from its customers since July 15, 2015.
- Decrease homeowners, condo owners, and renters' insurance rates by an average of 7.0%, or about
$78.6 millionper year. Since State Farmhad requested rate increases of about $77.4 millionper year, policyholders were protected from a total of $156 millionper year in overcharges.
The 7% overall rate reduction ordered is comprised of a 5.37% overall reduction ordered on
"This decision is a tremendous victory for consumers, and we applaud the Insurance Commissioner for making the right decision," said
Proposition 103 Reforms Have Saved California Motorists Over
Proposition 103 not only bars insurance companies from charging excessive auto, home, business, and other property casualty insurance rates. The measure also authorizes consumers to request hearings to challenge illegal rates and other insurance practices, as Consumer Watchdog did in requesting the hearing on
Prop 103 also requires insurance companies to set premiums based primarily on a driver' safety record, annual mileage driven and years of driving experience, and give good drivers a special 20% discount; requires insurers to comply with the state's civil rights, consumer protection and antitrust laws. And it made the Insurance Commissioner, formerly a gubernatorial appointment, an elective post.
The insurance industry spent over
Insurance companies were required to refund over
State Farm Pleads Poverty
A hearing began before Administrative Law Judge
After reviewing the Administrative Law Judge's Proposed Decision, the Commissioner requested further evidence on the appropriate interest rate on the ordered refunds. Following that inquiry,
State Farm Tries to Hide Evidence from the Public
One of Proposition 103's core reforms requires insurance companies to disclose to the public all the information submitted in support of an application to change their rates. Flouting this requirement,
This year alone, Consumer Watchdog successfully challenged two other excessive rate changes proposed by
Read the Insurance Commissioner's
Read Consumer Watchdog's
Read more about Proposition 103: http://www.consumerwatchdog.org/focusarea/prop-103-california-insurance-reform
Consumer Watchdog is a non-profit non-partisan organization. It has invoked the public participation process under Proposition 103 to save auto, home and medical malpractice insurance policyholders over
Consumer Watchdog's trial counsel in this proceeding are
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/california-voters-passage-of-proposition-103-28-years-ago-pays-off-again-today-says-consumer-watchdog-300359276.html
SOURCE Consumer Watchdog