California Department of Insurance Issues Notice of Noncompliance to State Farm

January 17, 2017

  • January 17, 2017 at 11:48 am
    Observor says:
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    State Farm is in a no win situation. Legally they need to inform their policy holders of a change about a month before renewal. They also need some time to implement the change in their systems. The commissioner is on some political vendetta against them. For California this is somewhat short sighted in that this market along with others may leave the state if they cannot achieve the appropriate return.

  • January 17, 2017 at 2:50 pm
    PJ says:
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    I’m not so sure about the need to “legally notify”, when the rate is going DOWN. Doesn’t make any sense to me. Sounds like St Farm is using the letter of the law to their advantage to gain an extra 50 days of higher premium.

    • January 17, 2017 at 5:09 pm
      Gork says:
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  • January 18, 2017 at 10:21 am
    Eddie Hall says:
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    Several years ago in Georgia a law was passed that required insurance companies pay the diminished value of a vehicle because it had been wrecked. A claims adjusting firm was giving seminars on diminished value and how it worked. The first thing the owner of the claims adjusting firm said was, “State Farm is responsible for more bad case law than any company in the insurance business.” They play hard ball with insureds and wind up going to court and losing and then all companies pay the price. The diminished value case involved State Farm. Their insured wanted an extra $300 to compensate him for the diminished value stating that when he traded or sold the vehicle it would be worth less due to the fact it had been wrecked. State Farm so no, and it went all the way to the Georgia Supreme Court and State Farm lost. This cost the insurance companies millions of dollars on claims that had already been settled because the insureds could claim diminished value and have their claim re opened.

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