The Greenlining Institute, a multi-ethnic advocacy organization, has fiiled a petition with the California Department of Insurance challenging Liberty Mutual Insurance Co.’s insurance rates.
According to the advocacy group’s petition, Liberty Mutual is limiting its service to Californians, flouting insurance regulations and generally operating inefficiently to the detriment of California’s diverse marketplace.
On Sept. 17, 2007, Liberty Mutual filed a 22.76 percent rate increase request for its personal umbrella insurance line with the California DOI. The Greenlining Institute’s petition claims that the insurer’s rate increase was too large, and noted that the company lost significant sums in potential revenue by canceling multiple policies in California and is not sufficiently utilizing the California’s Low Cost Auto Insurance Program to gain additional customers.
Greenlining further noted that due to its continued use of ZIP codes as a variable in determining automobile insurance premiums, and its lack of participation in the California Organized Investment Network, the company was operating contrary to important insurance regulations.
The group also questioned the reasoning behind increasing rates while maintaining what it called large executive compensation packages.
The California Insurance Code directs the Commissioner to hold a hearing on the rate increase, when requested within 45 days, if the company’s proposed increase exceeds 7 percent. The Greenlining Institute submitted its petition requesting a hearing to address the increase on Nov. 19, 2007 within the 45-day period.
To view the group’s petition or for more information, visit http://greenlining.org/home.
Source: DOI, Greenlining Institute
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