Governor Newsom’s plan to accelerate California’s insurance review plan process backed by Insurance Commissioner Lara.
California Governor Newsom’s Insurance Review Acceleration Plan Faces Potential Legal Challenges Amidst Industry Support
Governor Newsom’s administration introduced a plan to speed up California’s review of insurance price increases. It aims to address the state’s insurance issues quickly but faces possible legal challenges, according to the report of The Sacramento Bee.
Insurers argue that slow approval processes contribute to their losses from wildfires and climate change. Major insurance companies support the plan saying it’s crucial for stabilizing the market.
The plan requires the Department of Insurance to respond to price change requests within 120 days. Challenges from individuals or groups could prolong the process especially for large price hikes.
Consumer advocates criticize the plan suggesting more resources for the existing process would be better. The proposal’s future remains uncertain due to potential legal challenges.
(photo: CalMatters)
Insurance Commissioner Lara Backs Fast-Track Plan for California Insurance Reviews, Amid Legislative Division and Budget Negotiations
Insurance Commissioner Lara backs the plan, emphasizing its importance for consumer protection. It now awaits legislative review and could be fast-tracked into law as part of the budget.
As California faces insurance challenges and the fate of this proposal holds significant consequences for residents. Lawmakers are divided on its merits amid ongoing budget negotiations.
The proposal aims to speed up insurance price evaluations to address delays causing financial losses for insurers, especially from wildfires and climate risks. It sets a 120-day deadline for responses, but challenges may extend the process.
Insurance Commissioner Lara supports it for compliance with state laws and consumer protection. With its fate uncertain pending legislative review, its impact on Californians facing insurance challenges due to climate change is significant amid ongoing budget discussions.
