Judge denies State Farm’s attempt to stop regulator’s order to reduce rates
News: 2016 Press Release
"State Farm's lawsuit challenging my order is an attempt to weaken consumer protections provided by Proposition 103, and deprive consumers of a $100 million rebate and ongoing relief from excessive insurance rates," said Insurance Commissioner Dave Jones.
Commissioner Jones ordered the rate reduction, which is effective on December 13, 2016, after considering voluminous evidence and actuarial analyses that was presented during a lengthy hearing process, which revealed State Farm's rates were excessive and unjustified.
State Farm requested a rate increase of 6.9 percent. Based on the evidence presented during a rate filing public hearing, however, the commissioner determined that rates State Farm is currently charging are excessive. Specifically, Commissioner Jones ordered State Farm to reduce its homeowner insurance rate by an average of 5.37 percent, its renter insurance rate by an average of 20.39 percent, and its condominium insurance rate by an average of 13.81 percent -- for a weighted average of 7.0 percent.
Media Note: The next hearing is scheduled in San Diego Superior Court on Friday, December 16 at 1:30 p.m.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.