California Commissioner Wants Data on Business Interruption Coverage

March 27, 2020

  • March 27, 2020 at 1:54 pm
    Roger Mc Cluney, says:
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    Gees most policies that write business interruption insurance do not cover this type of loss
    The trigger for coverage is for a covered peril to cover loss to business personal property at the insured premises.

    I wonder what the Commissioner will do when a major earthquake occurs in CA wherein few businesses buy earthquake coverage

  • March 27, 2020 at 2:18 pm
    JohnM says:
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    It figures that the People’s Republics of California and New York are the two states demanding that insurance carriers submit documentation on the policy language and intent of
    a commercial insurance policy relative to CoVid 19 being an insurable loss.

    Message to carriers: Submit your docs along with a request to retreat from sales in California and New York. Meaning, Mr. Lara, perhaps we insurance carriers really don’t know what we are doing, and so we have elected to stop selling insurance in California. Or, we could sell the same policies, same policy language, and send you a copy of each, detailing exactly what it will and won’t cover and we won’t enforce the policy until you have verified that you have read each policy.

    I’m sick of bureaucrats dictating terms to business.

    • March 30, 2020 at 6:23 pm
      CO_yeti says:
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      And yet CA and NY have the 1st and close 3rd largest economies in the nation. Seem like they aren’t doing everything wrong.

  • March 30, 2020 at 11:53 am
    SacFlood says:
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    Lara doesn’t know much about Insurance. Plus he may be corrupt (reference the money he had to repay Applied Underwriters). In addition, he is dressing up the FAIR Plan to make it look like an HO-3 Homeowners Policy, thus taking our market of last resort and instead making it our market of first resort, and therefore also allowing the carriers to shift the risk from their books to the State. Inept, incompetent, uninformed, ignorant, and corrupt – not exactly the kind of Commissioner California needs, now or ever. He’s probably just trying to use the office to move up to Governor or some other office. Termed out of the Legislature, he ran for Insurance Commissioner just to stay in Government, getting around Term Limits.

  • March 31, 2020 at 2:21 pm
    Hammer10 says:
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    Brace yourselves—-it’s coming! Lara will DEMAND insurance companies indemnify policyholders under Business Interruption Coverage regardless of the provisions, exclusions, and will instill a broad definition of “direct physical loss or damage” to property at the insured location. This will be done by Lara or by the legislature. Insurance companies will be pay these claims because it’s cheaper than defending these claims via a “dec action.” Besides they will probably lose the “dec action” as judges like to rule in favor of policyholders involving catastrophic losses. The Insurance companies only loss will be the amount of their retentions. Claims above the reinsurance retentions will be billed to reinsurers under “one loss.” My two cents based upon 40 years of insurance and reinsurance experience.



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