State Farm is dysfunctional. They pulled the same thing in Texas several years ago, defied the Dept of Ins order, defied a judge ordering refunds and after several years, did a refund. I don’t know how they keep business on the books with their actions. Now, they just lost $7 Billion on Personal Auto, closed down 11 offices and laid off or re-assigned 4,200 employees. They really are not a Good Neighbor.
Why does CA Department of Insurance need to micro manage each line of business of the larger carriers?
Future profit and losses in personal auto and home are based on fixed and variable issues (i.e. claim exposure).
Refunding to client (when short term profit in Home) is rather one sided.
Retroactive surcharge to client (when short term loss in Auto) will never happen by design.
Usually profitable carriers have the resources and stability to pay claims long term!
Micro management may also lead to excessive new business underwriting with additional costs.
This is very regressive and increases cost by default.
How much of the auto and home insurance premium paid in CA is based on the excessive regulatory exposure!
Enough is enough! It is time to have nonpartisan Insurance commissioner.
Like other western states (AZ, CO, ID, NV, OR, UT and WY).
Elected in 11 states; appointed in 39
In the 39 appointed states, 37 are appointed by the Governor and two states (New Mexico and Virginia), appoint via a multi-member commission
State Farm is dysfunctional. They pulled the same thing in Texas several years ago, defied the Dept of Ins order, defied a judge ordering refunds and after several years, did a refund. I don’t know how they keep business on the books with their actions. Now, they just lost $7 Billion on Personal Auto, closed down 11 offices and laid off or re-assigned 4,200 employees. They really are not a Good Neighbor.
Why does CA Department of Insurance need to micro manage each line of business of the larger carriers?
Future profit and losses in personal auto and home are based on fixed and variable issues (i.e. claim exposure).
Refunding to client (when short term profit in Home) is rather one sided.
Retroactive surcharge to client (when short term loss in Auto) will never happen by design.
Usually profitable carriers have the resources and stability to pay claims long term!
Micro management may also lead to excessive new business underwriting with additional costs.
This is very regressive and increases cost by default.
How much of the auto and home insurance premium paid in CA is based on the excessive regulatory exposure!
Enough is enough! It is time to have nonpartisan Insurance commissioner.
Like other western states (AZ, CO, ID, NV, OR, UT and WY).
Elected in 11 states; appointed in 39
In the 39 appointed states, 37 are appointed by the Governor and two states (New Mexico and Virginia), appoint via a multi-member commission