According to Dave Jones, the California insurance commissioner, the top 100 companies in the state, which make up 96.7 percent of its market, have increased the rates that they have filed by an 2.8 percent average so far this year. The average increase will impact the majority of businesses that are legally required to purchase plans that pay for an injured employee’s medical expenses when the injury occurred while on the job, and that offers compensation for work related disabilities both temporary and permanent. The majority of the policies held…
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Commissioner Dave Jones reflects on achievements a year after taking office
California Insurance Commissioner Dave Jones has been in office for a full year now and he has taken the occasion of this anniversary to reflect on the accomplishments he has been a part of from 2011. In a statement released by the state’s Department of Insurance, the Commissioner notes that his time in office has been filled with confrontation with the insurance industry. Indeed, many of the actions coming from the Commissioner have been met with opposition from insurers, especially the bid to give state regulators more authority over the…
Read MoreImprovements to CLCA underline the importance of insurance for California drivers
Officials in California made an announcement last week which explained a regulation change to help drivers to avoid expensive consequences when they are required to drive immediately after taking out a policy, as those who use the Low-Cost Automobile Insurance (CLCA) program will no longer have to endure the two week waiting period in order to receive their proof of policy. Currently, drivers who have just taken out CLCA coverage must either choose not to drive for the first two weeks of coverage, or they risk being caught behind the…
Read MoreS&P downgrades Californian insurers while Commissioner Jones insists the companies are financially sound
Rating agency Standard & Poor’s seems to be in the grips of a downgrading frenzy as the agency downgrades the credit ratings of five of California largest insurance companies. The move comes on the heels of the agency’s downgrading of the federal government’s credit rating, which sparked controversy throughout the country and drove many businesses to re-evaluate their place in the commercial market. S&P downgrade of the state’s insurers could have major implications for the industry, but Insurance Commissioner Dave Jones says that there should be no doubt about the…
Read MoreCalifornia District Attorneys awarded million in grants to fight insurance fraud
California’s Department of Insurance is issuing over $3 million in grants to the state’s District Attorneys in an effort to battle the spread of fraudulent disability and health claims. The state has been wracked with fraud for several years, a fact that Insurance Commissioner Dave Jones has labored to rectify. According to Jones, the grants will be used to fun investigations and prosecutions as the state government looks to crack down on insurance fraud. Jones hopes that the move will also dissuade individuals from committing fraud, knowing that District Attorneys…
Read MoreCommittee vote passes bill to allow state officials to halt health insurance rate increases
A bill in California has been passed through a committee vote that would give state officials the authority to regulate insurance rates by being able to reject increases that health insurance companies have proposed. The bill was approved by the Senate Health Committee by a vote of 5-3. This measure, called AB52, will now proceed to the Senate Appropriations Committee. Representatives of insurance companies, hospitals, and doctors have been working to try to diminish or end the bill, but they each did so for their own reasons. Should the bill…
Read MoreNew insurance regulations for California homeowners take effect
Despite numerous challenges, a new set of regulations for California homeowners took effect on June 27, 2011. These changes were geared toward improving the standards and training processes for the replacement value estimations of a homeowner’s insurance should a disaster occur. At the same time, the controversial alterations are still being contested by two insurance trade associations. The new cost regulations include the following (California Code of Regulations Section 2695.183 (h)): • Conditions for outlining the requirements that involve the replacement cost and value estimates designed to improve comprehensiveness, consistency,…
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