California Judge Denies State Farm’s Request to Delay Rate Reduction Order

Superior Court Judge Katherine Bacal has denied State Farm’s request for a temporary restraining order in an attempt to delay California Insurance Commissioner Dave Jones’ enforcement of his order directing the carrier to reduce homeowners and renters rates by 7 percent overall.

Jones’ November 7, 2016 order to reduce rates came after considering evidence and actuarial analyses and finding that State Farm needed to decrease its homeowners rates by seven percent overall.

State Farm requested a rate increase of 6.9 percent. Based on the evidence presented during a rate filing public hearing, Jones determined that the rates being charged by State Farm were excessive.

Jones is ordering State Farm to reduce its homeowner insurance rates by an average of 5.37 percent, its renter insurance rates by an average of 20.39 percent, and its condominium insurance rates by an average of 13.81 percent-for a total average of seven percent.

Sevag A. Sarkissian, a State Farm spokesman, issued the following comment by State Farm:

“We understand these are complicated legal issues that will take time. We are working to resolve the matter and we appreciate our customers’ patience. We will continue to comply with the orders of the Court.”

Jones in a statement said that State Farm’s efforts to avoid complying with his rate reduction order must stop.

“It is time for State Farm to do the right thing by policyholders and comply with the order to reduce rates,” Jones said.

Related:

• California Department of Insurance Issues Notice of Noncompliance to State Farm
• California Commissioner Orders State Farm to Reduce Homeowner Rates
• State Farm Agrees to Cut Rental Rates in California by 40%
• California Commissioner, Allstate Agree to Homeowner Rate Reduction
• Allstate Returns to California Homeowners Market With 12.6 Percent Reduction
• California Consumer Group Wants State Farm Homeowners Rate Reduction

Topics California Legislation Pricing Trends State Farm