Insurer Group Hammers Claim that California Prop 103 Saved Drivers Billions

October 17, 2018

  • October 18, 2018 at 11:12 am
    blu lightning says:
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    One of the worst things that happened to CA.
    Before Prop 103, EVERYONE wanted to be in and compete in that state. Rates were not bad relative to other states. What made CA different at the time was the fraudulent claims that were influenced by the trial bar as well as crooked doctors and body shops. Other reforms made a positive impact on the marketplace, less so Harvey and 103. The law had the effect of limiting competition as many carriers don’t want to mess with the regulatory burden that 103 requires.
    If you are already in CA and have connections to CDI, then you can lock in rate levels that are higher then they would otherwise be if there was more competition in the state. Crony capitalism in a state full of corrupt and self serving politicians at its best!

  • October 18, 2018 at 6:17 pm
    Mike says:
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    I’ve worked in the industry, primarily property-casualty underwriting, and on the government/regulatory side for over 15 years. I’ve handled insurance in 46 of the 50 states. Prop 103 makes a HUGE difference! California is the 3rd largest insurance market in the world for a reason. Companies are hardly failing and running away. Prop 103 created protections for consumers and companies in commercial and personal insurance markets. It essentially requires everyone to be fair. You can charge whatever rate you want, as long as you can show that it is actuarially sound. It can’t be excessive or inadequate. It keeps companies from undercutting the market and threatening solvency. It also keeps companies from taking advantage of their insureds. It’s insane the abuses that consumers (from businesses to working class people), must endure, with no recourse or protection in some other states. Stop being a hater.

    • January 30, 2020 at 10:45 pm
      Robert says:
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      I also work in the insurance industry and have seen the differences that prop 103 has made in the California insurance market. I’d hardly call these differences or changes positive. Let’s be very clear. The DOI is not there to protect insurance companies. Period. Read any press release from Lara or his mentor Jones. None of them have anything good to say about insurance companies. In fact nearly every press release about insurance companies is one of the commissioners tooting his own horn about turning down one of the needs of a company, citing things like “protecting our consumers from the unfair business practices of insurance companies” “Protecting consumers of the exorbitant rates charged by insurance companies” etc. Lumping all insurance companies into one statement is not support of the insurance market. I’m reading things like protection for insurance companies? Really? You must mean protections like waiting 3-6 months for a rate filing to be approved. Yes there is a deemer date (for those who don’t know, a date by which the filing needs to be either approved or rejected-basically), but companies more often than not are asked to waive the deemer date. If the company does not agree to waive it, the firing is automatically rejected. Or Maybe the protection comes in the form that personal auto carriers are required to offer renewal to any policy with a good driver unless the the company pulls out of the state, companies must keep renewing “good driver” business regardless of the # of “hit & run” or fraud losses that the company has paid on the policy, or the way that the company’s ability to investigate fraud is hampered by the department. Also I am seeing that prop 103 keeps companies from undercutting competition with inadequate rates and threatening solvency … FALSE Undercutting still happens in both personal and commercial lines. Look up the company called ACCESS that became insolvent in 2018, just to name the most recent. What prop 103 did was make another enormous state regulatory agency. The number of employees in the CA Department of Insurance increased from about two to three hundred employees to thousands of employees. The one thing the DOI does do is they investigate consumer complaints. However, the DOI will not weigh the validity of the complaint because they get paid for every complaint. Real case scenario- An insured writes a complaint to the DOI stating this – On October 15th I got into a accident on my way to work. After got off work I went to Nickernacker insurance and bought full coverage on my car. The next day I reported the the accident to my insurance company. Two days later I was told that my accident would not be covered. Please investigate this company because they are fraud. end of story – Instead of the DOI just telling this person “Number one, you have committed fraud. Number two, you have no basis for your complaint. You cannot insure a car after you crash and the vehicle is damaged. But they don’t. They pass the complaint on to the company and wait for an explanation of why the claim was denied. lmfao…How does this behavior protect the company? I have personally spoken with company presidents who say they will never write insurance in CA due to prop 103. Fact! The companies writing home insurance will be the next to go because of some of the things the DOI does. Just wait. They will drive more companies out of CA with the shenanigans they pull.

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