News: 2007 Press Release

SACRAMENTO - Anticipating that the magnitude of the agricultural freeze devastating California's crops and pending insurance claims will create a shortage of qualified insurance adjusters, California's new Insurance Commissioner Steve Poizner issued an Emergency Declaration today to help expedite insurance claims from the disruption of California's agricultural industry.

"Today, I am issuing a declaration which will dispatch additional insurance adjusters to the state of California to assist the agricultural community with insurance claims resulting from the disastrous freezing temperatures," said Commissioner Poizner. "During this state of emergency, I want to ensure that our farming communities avoid the red tape and get paid quickly so they can get back to the business of farming."

Today's proclamation from the Department of Insurance will allow out-of-state insurance adjusters to be dispatched to California's agricultural community to assist in California's state of emergency. The declaration comes as the Department of Insurance surveys California insurers and determines that outside adjusters will be in overwhelming demand for claims, just days after Governor Arnold Schwarzenegger proclaimed a state of emergency due to extreme low temperatures and freezing conditions which began January 11.

Preliminary data indicates that there may be more than one billion dollars of damage to California agricultural products, including approximately $700 million in damages to citrus crops, as well as extensive damage to avocado and strawberry crops.

Approximately 90% of crops in California are covered by crop insurance, and during a state of emergency the state's claims adjusters would be in high demand, causing severe delays.

"We appreciate Commissioner Poizner's effort to act quickly and decisively to assist California's agricultural industry," said Doug Mosebar, President of the California Farm Bureau. "Today's declaration is a proactive step that will be vital to the hard-working families and small businesses that represent the agricultural community."

"A large segment of California's farming families have suffered a great blow with the recent freeze, as they did in 1990 and 1998," said Senator Dave Cogdill (R-Fresno, Modesto). "Commissioner Poizner's quick action and leadership will greatly assist California's growers to get back on their feet and return to business. This is good for growers, good for California's economy, and good for California's consumers."

The Commissioner issued the declaration in conformity with the requirements of Section 14022.5 of the California Insurance Code, which provides that such use is reasonably necessary in order to adequately respond to the emergency situation.

The last time an Insurance Commissioner issued this type of declaration was in November 2003 in response to wildfires in Southern California.

See Declaration of Emergency.