Insurance Commissioner Lara Must Close Loophole in Regulation Allowing Insurers to Ignore WIldfire Mitigation for Denial or Non-Renewal Decisions

Los Angeles, CA – A regulation proposed by California Insurance Commissioner Ricardo Lara to stop insurance companies from overcharging homeowners who reduce their risk of loss from wildfires must also apply to insurance companies’ decisions about which properties they will insure, consumer groups will testify at a public hearing in Oakland today. 

Los Angeles, CA – Consumer Watchdog said a regulation proposed by California Insurance Commissioner Ricardo Lara to require discounts for homeowners who protect their homes from fires is necessary and long overdue -- but falls short when it comes to insurance companies’ non-renewal decisions. As written, the regulation would not require insurance companies to consider home or community mitigation steps when making nonrenewal decisions.

Los Angeles, CA – A new state wildfire protection framework released this week is an empty promise for homeowners if the Insurance Commissioner does not also require that insurance companies give discounts to policyholders who follow its recommendations, said Consumer Watchdog today. 

Draft regulations have been under consideration at the Department of Insurance to mandate wildfire mitigation discounts for the past year, yet Insurance Commissioner Ricardo Lara did not mention the rules or their status when announcing the “Safer From Wildfires” framework this week.

Los Angeles, CA – Consumer groups said a regulation proposed by California Insurance Commissioner Ricardo Lara to require discounts for homeowners who take home-hardening steps to reduce their risk of damage from wildfires must also apply to insurance companies' decisions about which properties they will insure. California homeowners, businesses and communities face unfair price increases and non-renewals, and new wildfire mitigation rules must protect against both, said the groups today at a public hearing convened by the Department of Insurance.
 

Los Angeles, CA -- A group convened by Insurance Commissioner Ricardo Lara to investigate insurance-related climate change solutions is recommending he let insurance companies insert secret models into ratemaking, a top deregulatory priority of the industry in California.  
 

When disaster hits, insurance companies are supposed to have your back… but their number one priority is almost always their own financial well-being.

Los Angeles, CA — While the rest of the state is sheltering at home, lobbyists for the insurance industry are busy promoting legislation, scheduled for a hearing tomorrow, that would allow them to boost insurance rates on homeowners and renters.

Los Angeles, CA -- As the 2019 wildfire season begins, many homeowners in at-risk areas have once again seen their insurance rates go up, or their insurance policies dropped altogether

Los Angeles, CA– In a letter sent today, Consumer Watchdog called on Insurance Commissioner Ricardo Lara to use the full authority of his office to preserve Californians’ access to home insurance.

Sacramento, CA – A wildfire insurance bill sponsored by Insurance Commissioner Ricardo Lara stalled in the state Assembly today in the face of objections raised by the Department of Finance and Consumer Watchdog that the bill would expose taxpayers to unnecessary financial risks.

Los Angeles, CA -- Consumer Watchdog said legislation sponsored by Insurance Commissioner Ricardo Lara and scheduled for a vote Wednesday would needlessly expose California taxpayers to the same kind of complex and risky financial instruments that led to the 2008 financial crisis.

The bill would allow the state to purchase insurance and other financial products with none of the usual state oversight, including insurance regulation by Commissioner Lara’s own Department of Insurance and procurement rules at the Department of General Services.

Los Angeles, CA -- Consumer Watchdog said today that a California wildfire victims’ relief fund could be important, but that the proposal put forth today by Governor Newsom, in legislative hands, threatens to take rights and dollars from wildfire victims, ratepayers and taxpayers without forcing PG&E to make tangible concessions.

Los Angeles, CA -- In a letter to California’s legislative leaders, Consumer Watchdog today wrote that the shocking details of a utility junket in Maui with 12 state lawmakers while wildfires destroyed the state  should compel new immediate online disclosures about such trips.

As wildfire victims fled for their lives in Paradise and Malibu this November, utility executives and lobbyists for California's big utilities were wining and dining 12 influential state legislators in a different paradise -- Wailea, Maui.

The New York Times broke the story about the junket and the discussion about the wildfires there, which had to include the the inevitable bailout for the utilities that helped spark the blaze. 

Governor Brown may not have lit the match that set off the recent wild fires in Sonoma and Napa, but he has responsibility for failing to clear the tinder that spread the flames.
 

Los Angeles, CA — Consumer Watchdog today urged the President of the California Public Utilities Commission, Michael Picker, to launch a public investigation of Pacific Gas & Electric’s shutoff of power to thousands of customers in Northern California over the weekend due to high wind advisories.

This oped was published in the San Francisco Chronicle on October 5, 2018

https://www.sfchronicle.com/opinion/openforum/article/Insurance-for-fos…

What if hospitals sold crack, doctors offered cigarettes in their waiting rooms, and firefighters gave out flamethrowers?

San Francisco, CA – The nonprofit consumer group responsible for the most effective regulation of the insurance industry in America said today it would be challenging America’s insurance companies to join their European counterparts in refusing to underwrite coal and fossil fuel projects.

Sacramento, CA -- Consumer Watchdog released evidence today showing that the co-chairman of the conference committee convened to discuss taking wildfire victims' legal rights rushed witnesses to end a key hearing in order to get to his fundraiser across the street attended by PG&E and other utility lobbyists.

SACRAMENTO, CA—Consumer Watchdog’s President Jamie Court spoke today at a rally of wildfire survivors and urged legislators not to give in to PG&E and the other utilities’ demands to take victims’ rights to hold the companies legally accountable for damage caused by their equipment.

The wildfires devastating Bel Air, Ventura and Southern California's canyons are destroying homes in their path. Unfortunately, many of those homeowners are going to find that when they try to rebuild their homeowners' policies may not cover the real costs.

It's a sad cycle that happens after too many wildfires, include the historic devastation fires wrought recently in Sonoma and Napa Valley.