Newsom aims to stabilize California's homeowners' insurance market by accelerating the review process of premium rate-hike requests to prevent insurers from exiting. The FAIR Plan, the state's insurer of last resort, has accumulated over $300 billion in payouts, burdened by the market instability.
Insurance Commissioner Ricardo Lara's Sustainable Insurance Strategy intends to establish regulations stabilizing rates and incentivizing insurers to write policies in wildfire-prone areas. Although set to become law by year-end, Newsom stresses the urgency by stating, 'It should not take this long for emergency regulations. We can't wait until December.'
Gov. Newsom's bill to expedite premium rate-hike reviews aligns with Commissioner Lara's broader insurance reforms. The governor emphasizes the need for swift action, acknowledging the challenges faced by homeowners in securing coverage, especially in high-risk wildfire zones.
#california-homeowners-market #insurance-reforms #governor-gavin-newsom #insurance-department-review-process #market-stabilization
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