California Commissioner Wants Halt to Moratoriums in Wildfire Areas

December 12, 2017

California Insurance Commissioner Dave Jones has issued a formal notice to insurers directing them to cease any and all moratoriums on auto insurance and reminding them that California law prohibits the practice.

Jones issued the notice in response to insurers imposing moratoriums on writing new private passenger auto policies or prohibiting additions to existing auto policies in the Southern California wildfire areas, according to the California Department of Insurance.

Regulations issued by the commissioner require insurers to write private passenger auto coverage for any consumer who qualifies as a good driver.

“Buying new auto coverage or changing your auto insurance coverage any time before you experience a loss is your right as a good driver,” Jones said in a statment. “I am committed to making sure consumers’ rights are protected, which is why I issued a notice to all property and casualty insurers writing private passenger auto directing them to stop any and all moratoriums on auto insurance and reminding them that such moratoriums and restrictions are prohibited under California Law.”

In a another action taken to help Southland wildfire victims, Jones issued a notice to insurers asking them to agree to expedite wildfire claims handling and adopt a billing grace period.

Most insurers agreed to the commissioner’s request to follow expedited claims handling procedures after the October wildfires in Northern California. The commissioner expects insurers to agree to these procedures for the Southern California wildfires, according to the CDI.

Related:

Topics California Catastrophe Carriers Natural Disasters Auto Wildfire

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Latest Comments

  • December 19, 2017 at 3:25 pm
    Furrie Princess says:
    Prop 103 was passed by the citizens in the 1980's and finally all the various aspects implemented over the last few years. There have been a number of areas that were not wel... read more
  • December 18, 2017 at 11:22 am
    Agent says:
    Don't think our new President will sponsor another Cash for Clunkers program. It cost the taxpayers several billion the last time it was tried.
  • December 14, 2017 at 8:22 am
    CL PM says:
    Counterpoint - unfortunately, you are 100% correct. Jones' announcement essentially just reinforced to companies what the law is in the state regarding Auto insurance. Jones d... read more

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