California Insurance Commissioner Steve Poizner has approved homeowners insurance rate increases for State Farm and Farmers, increasing premiums by a combined $115 million.
State Farm customers will soon face an average 6.9 percent hike and Farmers policyholders’ rates will climb 4.1 percent. In both cases, the nonprofit Consumer Watchdog had formally challenged the rates and petitioned Poizner to hold hearings pursuant to Proposition 103, but the commissioner rejected those requests.
The consumer group is concerned that with the sinking economy, more insurers will turn to rate hikes. “Insurance company profits are tied to their investment income and when the economy weakens companies try to push premiums higher in order to maintain high profits,” said Consumer Watchdog said in a statement.
“While everyone is feeling the sting of a bad economy, insurance companies want to pass the pain on to homeowners and other policyholders. The insurance commissioner stands between these companies and our wallets and Californians need him to be there,” said Douglas Heller, Consumer Watchdog’s executive director.
Source: DOI, Consumer Watchdog
Einstein says: 
R.K. says: 
State Farm's Special Investiga says: 
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
