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.”
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.