State Farm Halts Home Insurance in California - WSJ

[Al3x Lee]

You actually do own a Delorean? Damn it, I 100% should have stopped and visited you on my Oregon trip.

Hit me up if you're ever back in the area, I might take you on a ride if you let me borrow your cape

 

[AZDave]

[EXTERNAL LINK] - Consumer group accuses Allstate, State Farm of extortion after insurers halt new home policies in CA[/URL]

Here is comes, the pressure....

"their not losing money";, "this is extorsion, but it is not real"....

 

[marindependent]

A bad day of fishing is better than....

What?

Is better than a Good Day of State Farm Declinations?

 

[AZDave]

I linked to this recent artical from my thread, and this may be better:

[EXTERNAL LINK] - Consumer group accuses Allstate, State Farm of extortion after insurers halt new home policies in CA

Are going to make them sell policy's?

 

[Al3x Lee]

I linked to this recent artical from my thread, and this may be better:

[EXTERNAL LINK] - Consumer group accuses Allstate, State Farm of extortion after insurers halt new home policies in CA

Are going to make them sell policy's?

"I'm tired of losing money in California, Grandpa!

"WELL THAT'S TOO DAMN BAD, YOU KEEP WRITING POLICIES"

 

[marindependent]

"triggering calls of extortion by a local watchdog group." YAH, sure.

"They're not losing money. Their profits in California on homeowners insurance are four times the national average," said the group's founder Harvey Rosenfield. "Over the last 20 to 25 years, they've take in tens of billions of dollars more than they've paid out in claims during that time." OK....but where is that trend line headed now? SF just had their worst loss ever.

"This is extortion but it's not real," said Rosenfield." What is not real? You are the one using the word extortion - if its not real - than dont use the word.

"Rosenfield said Lara has the authority under Prop103 to declare an emergency and force Allstate and State Farm to resume selling homeowner insurance policies or risk being banned from selling all other forms of insurance in California." That would really help the situation, LOL. Rosenfield you must have not been paying attention to the situation. This has been unfolding now for almost three years. All the personal lines producers in the state have seen this coming. Lloyds of London would reject a home, but State Farm would still take it. Something was amiss.

"It's clear to us that the insurance industry is in the middle of a boycott of the state of California," said Rosenfield. "They want uncontrolled rate increases." Yah, uncontrolled - you mean like other states? When you say Boycott, are you referring to underwriting sanity?

This is a really unbalanced article. Where are the statistics ABC news? Or was that too much work?

Thanks for the share @AZDave

 

[Markthebroker]

"triggering calls of extortion by a local watchdog group." YAH, sure.

"They're not losing money. Their profits in California on homeowners insurance are four times the national average," said the group's founder Harvey Rosenfield. "Over the last 20 to 25 years, they've take in tens of billions of dollars more than they've paid out in claims during that time." OK....but where is that trend line headed now? SF just had their worst loss ever.

"This is extortion but it's not real," said Rosenfield." What is not real? You are the one using the word extortion - if its not real - than dont use the word.

"Rosenfield said Lara has the authority under Prop103 to declare an emergency and force Allstate and State Farm to resume selling homeowner insurance policies or risk being banned from selling all other forms of insurance in California." That would really help the situation, LOL. Rosenfield you must have not been paying attention to the situation. This has been unfolding now for almost three years. All the personal lines producers in the state have seen this coming. Lloyds of London would reject a home, but State Farm would still take it. Something was amiss.

"It's clear to us that the insurance industry is in the middle of a boycott of the state of California," said Rosenfield. "They want uncontrolled rate increases." Yah, uncontrolled - you mean like other states? When you say Boycott, are you referring to underwriting sanity?

This is a really unbalanced article. Where are the statistics ABC news? Or was that too much work?

Thanks for the share @AZDave

Fantastic commentary.

 

[shawnmwalker]

Its an incredible situation for sure.

 

[marindependent]

Must really suck if you sunk your life savings into opening a new scratch agency in CA this year.

Totally, if only there were agents out there that had warned inspiring CA agents about this ....

I am not a CA agent, but seems SF was one of the only companies able to write new bus. Maybe worried about adverse selection, they are now taking a giant break.

Totally agree.

Also the California Department of nsurance is still spouting off about - "The number of companies writing new homeowners insurance has stayed consistent roughly 115 since Lara took office, according to the CDI." And the media is still reporting it as such. Source,
While this may technically be true, it is totally functionally untrue. There are NOT 115 insurers writing home insurance in Cali. They either have moratoriums, exceptional UW criteria, or some other way of preventing new business.

 

[tikibarrister]

exceptional UW criteria

If your house is made entirely out of steel, levitates over the ground so it's earthquake-proof, is staffed 24x7 by professional firefighters roaming the grounds with fire extinguishers, and you have a fleet of security personnel protecting it at all times from theft, as well as twice-daily safety inspections AND you agree to a $1m deductible, we might be able to write you...if you also bundle your autos, of course...