Judge denies another State Farm attempt to avoid reducing rates
News: 2017 Press Release
SAN DIEGO, Calif.— Superior Court Judge Katherine Bacal today denied State Farm's request for a temporary restraining order in an attempt to further delay Commissioner Jones' enforcement of his November 7, 2016 order directing the insurer to reduce homeowners and renters rates by seven percent overall.
"State Farm's ongoing effort to avoid complying with the order to reduce rates has to stop," said Insurance Commissioner Dave Jones. "It is time for State Farm to do the right thing by policyholders and comply with the order to reduce rates."
Jones' November 7, 2016 order to reduce rates came after considering evidence and actuarial analyses and finding that State Farm needed to decrease its homeowners rates by seven percent overall.
State Farm requested a rate increase of 6.9 percent. Based on the evidence presented during a rate filing public hearing, the commissioner determined that the rates being charged by State Farm are excessive. Specifically, Commissioner Jones is ordering State Farm to reduce its homeowner insurance rates by an average of 5.37 percent, its renter insurance rates by an average of 20.39 percent, and its condominium insurance rates by an average of 13.81 percent—for a total average of seven percent.
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.