https://apnews.com/article/california-wildfires-state-farm-insurance-149da2ade4546404a8bd02c08416833b U.S. NEWS
State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market
Updated 11:06 PM EDT, March 21, 2024
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SACRAMENTO, Calif. (AP) — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state
The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.
“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations,” the company said in a statement Wednesday.
“State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,” it continued. “It is necessary to take these actions now.”
The move comes as California’s elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state’s imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said.
Anonymous
READ MORE FILE - Police officers and emergency crews park outside the Louis Vuitton store in San Francisco's Union Square on Nov. 21, 2021, after looters ransacked businesses. Facing mounting pressure to crack down on a retail theft crisis, California lawmakers are split on how best to tackle the problem that some say had caused major store closures and products like deodorants to be locked behind plexiglass. (Danielle Echeverria/San Francisco Chronicle via AP, File) California Democratic lawmakers seek ways to combat retail theft while keeping progressive policy California Gov. Gavin Newsom comments on the passing of Proposition 1, a $6.4 billion bond ballot measure, during a news conference at the Ronald Reagan State Building Thursday, March 21, 2024, in Los Angeles. California voters have passed the measure that will impose strict requirements on counties to spend on housing and drug treatment programs to tackle the state's homelessness crisis. (AP Photo/Damian Dovarganes) California homelessness measure’s razor-thin win signals growing voter fatigue Longtime California seminary president Jeff Iorg addresses members of the Southern Baptist Convention's Executive Committee during a meeting on Thursday, March 21, 2024, in Dallas, Texas, where he was named the next president and CEO of the committee. (Adam Covington/Baptist Press via AP) Southern Baptists pick a California seminary president to lead its troubled administrative body The California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage. “One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.” It was unclear whether the department would launch an investigation.
Anonymous
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Last June, State Farm said it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.” The company said the newly announced cancellations account for just over 2% of its California policies. It did not say where they are located or what criteria it used to determine that they would not be renewed.
Anonymous
Wait... California is so fucking toxic even insurance scammers won't do business there? That's crazy.
Anonymous
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>>1280834 also have this issue in NJ. our gay ass governor passed a law saying you can't use credit score to determine insurance rates because "that is racist" so half the insurance companies are leaving and the other half are hiking rates by 50%
Anonymous
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>>1280834 >The company said the newly announced cancellations account for just over 2% of its California policies. You should do a little reading.
Anonymous
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>>1280827 California literally cannot stop losing
Anonymous
lmao, conservichuds are considering this a win in their anti-california hatefest? Lets say each of those houses and apartments have 2.5 people in them, average density. (72000 * 2.5)/39,000,000 Cali residents means this is affecting less than half a percent of the population of the state Its literally nothing
Anonymous
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>>1280882 Nothing but yet another business fleeing California and likely higher insurance rates from those who stay.
But hey, whatever.
Anonymous
Wow, let's look at how the insurance market is working in "where woke goes to die" Florida and- oh dear..
Anonymous
>>1280957 look at how the insurance market is working in communist new jersey since they made it so the insurance companies can't use the "racist" credit score, even though its a great predictor of safe people to insure
JJ Jameson, chief toilet shitter upper
JJ Jameson, chief toilet shitter upper Sat 23 Mar 2024 02:13:26 No. 1280978 Report Quoted By:
>>1280827 OP is being a nice little pussy and posting the ENTIRE article.
including '' READ MORE''.
This broken buck just copies and pastes without even reading the article i bet.
he'll never make it to a real news outfit, except as a toilet cleaner.
Anonymous
>>1280882 didn't you know black people are why earthquakes and other natural disasters exist
Anonymous
>>1280960 Honestly insuring an asset should be insuring an asset and set by some sort of scale in relation to the asset.
Using a credit score doesn't change the value of the asset. It's a practice that's never made any sense to me at all, except when applied to a legal right to charge higher premiums for no reason.
Not allowing a credit check to determine premiums shouldn't be what's causing NJ's woes. I'd imagine Democrats fucked up fundamentally somewhere else and insurance companies are simply whining they can't over charge.
Anonymous
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>>1280986 nah, the dems just banned insurance companies from using credit scores. Insurance companies aren't retards. They wouldn't include credit scores in their calculations if it didn't affect their bottom line. Insurance is also pretty cutthroat and they wouldn't be able to get away with jewing bad credit scores without getting undercut.
fact of the matter is people who have high credit scores are more responsible with their money. they are also more responsible with their driving and more responsible with their homes. why does it shock you that a retard with a garbage credit score drives like a retard?
Anonymous
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>>1280983 Yes, the Earth is trying to kill them, thus Africa, and Australia which was also originally inhabited by blacks.
Good call out.
Anonymous
>>1280983 there literally would be less global warming if all the black people had died in 1800
Anonymous
>>1281004 and if reagan just dropped a bomb on all the mental institutions instead you wouldn't be here
Anonymous
>>1280828 >Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.” Dems want civilized insurance rates but don't want to behave in a civilized manner.
Car insurance rates in Detroit for example, are FAR higher then in the surround suburbs, not because of "racism" but because Blacks frequently won't pay for insurance and when they hit you, either try to flee the scene and if not, they can't pay for any damages and thus the insurance company eats the costs.
This is why we can't have nice things...
Anonymous
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>>1281009 you are the one who is a retard. global warming is caused by humans consuming. 14% of all people are black. if all the blacks died there would be 14% less global warming
Anonymous
>>1281009 >and if reagan just dropped a bomb on all the mental institutions instead you wouldn't be here It was the Dems who insisted that it was "inhumane" to lock up batshit crazy people in the nuthouse, demanding they be released into civilization to cause all kinda problems for everybody around them. Of course the Reps went along with it, as they don't want spend tax dollars taking care of batshit crazy people.
Anonymous
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>>1281011 thanks for sharing your research
Anonymous
Anonymous
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>>1281015 you failed to rebut his argument
and admitted the republicans were short-sighted, penny-pinching morons