Judge enforces Jones’ order; State Farm must reduce rates
News: 2016 Press Release
"I am very pleased that the court denied State Farm's attempt to overturn my order requiring State Farm to reduce its rates going forward. I look forward to having my team work with the court to craft an order that requires State Farm fully identify the rate payers so that State Farm is actually able to issue rebates, totaling $110 million when this case is concluded. I am confident that we will convince the court that excessive rates are unlawful under Proposition 103 and State Farm consumers are entitled to rebates totaling more than $110 million.
State Farm's lawsuit is an attempt to weaken consumer protections provided by Proposition 103 while simultaneously continuing to overcharge consumers. Policyholders should not be forced to pay excessive rates or be denied the $110 million rebate to which they are entitled.
The court's ruling is an important win for all consumers, It is also an important affirmation of my authority under Proposition 103 to protect consumers from excessive rates.
The legal battle with State Farm is not over. We will have the opportunity to persuade the court to uphold my order requiring State Farm to issue rebates and State Farm will no doubt continue to argue that the court should overturn my order reducing State Farm rates. I will continue to stand up for California consumers and require auto, home and property and casualty insurers to reduce excessive rates."
The commissioner's rate-order went into effect December 13, 2016.
- December 16, 2016 Order
- Commissioner Jones' statement following Superior Court Decision
- Commissioner's November order required 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 condomini-um insurance rate by an average of 13.81 percent -- for a weighted average of 7.0 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.