Fireman’s Fund is lowering its premiums by 17.9 percent for California homeowners, following an order issued by California Insurance Commissioner Steve Poizner . The savings, which are estimated to amount to $35.1 million per year, or an average of $512 per year per policyholder, come as a result of a challenge under Proposition 103’s prohibition on excessive rates made by consumer advocacy group Consumer Watchdog. The rate decrease will take effect within 60 days of the order, issued June 20, 2008.
Earlier this year, Consumer Watchdog challenged Fireman’s Fund’s original request for a 5.6 percent rate reduction, arguing that the company used illegal costs, excessive profit levels and inflated loss projections to calculate that rate request. Discussions between the Department of Insurance, Fireman’s Fund and Consumer Watchdog resulted in final agreement on the 17.9 percent rate decrease. It also requires a new filing to confirm the rate is not excessive in 18 months.
Fireman’s Fund has approximately 68,000 homeowners insurance customers in the state.
Source: Consumer Watchdog, DOI
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