California Takes on the Insurance Industry
American Thinker,
by
Warren Beatty
Original Article
Posted By: DW626,
1/13/2025 6:28:33 AM
With the California fires, consumer advocates have redoubled their atacks on the "greedy" insurance companies. California congressman John Garamende said from his eight-year experience as insurance commissioner that the insurance companies will "'lowball' and deny claims." Carmen Balber, executive director of Consumer Watchdog, adds that home insurers in California are more profitable than the nationwide average (I guess Balber thinks insurance companies in California make too much money). Even Kamala Harris chimed in: "Many insurance companies have canceled insurance for a lot of the families
Post Reply
Reminder: “WE ARE A SALON AND NOT A SALOON”
Your thoughts, comments, and ideas are always welcome here. But we ask you to please be mindful and respectful. Threatening or crude language doesn't persuade anybody and makes the conversation less enjoyable for fellow L.Dotters.
Reply 1 - Posted by:
scottj 1/13/2025 7:25:15 AM (No. 1872319)
I think the insurance industries are taking on California.
7 people like this.
Reply 2 - Posted by:
Hazymac 1/13/2025 7:46:24 AM (No. 1872330)
If a state makes it illegal for an insurance company to make a profit, there will not be any insurance in that state.
25 people like this.
Reply 3 - Posted by:
felixcat 1/13/2025 7:58:00 AM (No. 1872338)
It might have been Fox Business that showed charts comparing insurance costs over past couple of years in CA and FL. Florida showed an average of $5200 per year and in CA - $ 1500 per year.
5 people like this.
Reply 4 - Posted by:
HPmatt 1/13/2025 7:59:22 AM (No. 1872339)
Kalifornia is a very, if not the richest state. State of CA can pay $40-60 Billion to rebuild the LA THEY burned down. Trump should match CA $1 for 10 in Aid, and take that $1 out of CA’s other Federal Grants. The up & down the ballot ignorance, graft and stupidity should NOT be subsidized by other US Taxpayers…
12 people like this.
Reply 5 - Posted by:
Strike3 1/13/2025 8:33:17 AM (No. 1872354)
Well written and truthful. Every business has a mandate to make money. If you don't like the insurance rates, don't move into flood plains and high fire-risk areas. My solution for California, since the state government has passed laws that there will be no forest cleanup, no firebreaks, and, in the case of Los Angeles, no water, they should subsidize the insurance premiums and losses of residents who lived there and expected their government to provide fire protection. If they can pay an incompetent DEI hire lesbian black female fire chief close to a million dollars annually, they can cover the risk that they imposed. It's only FAIR.
8 people like this.
Reply 6 - Posted by:
cartcart 1/13/2025 8:33:46 AM (No. 1872356)
The lower the risk, the lower the pricing of insurance. How can anyone blame State Farm for asking their policyholders to prevent losses by removing the brush fire exposure? Property taxes are sky-high and you would think that part of the grab would be spent on the right things. You all understand that insurance in coastal Florida has a huge wind factor because the hurricanes blow and property is destroyed. Rates go up to create mire capacity in the markets. If they can’t make that happen, companies withdraw from taking the risk. Texas and Florida have (had) wind pools to get more insurance, but these were unprofitable because the exposure was greater than the capacity.
4 people like this.
Reply 7 - Posted by:
bpl40 1/13/2025 8:39:22 AM (No. 1872360)
For the 'Rats this is a twofer. On one side they harvest the political benefit of fighting the 'evil insurance business' (price gouging grocers ring a bell?). On the other side as insurance companies wind up unaffordable business whole swaths of properties are left uninsured - read that never to be rebuilt. All you have to do is build tower cities in their place and house them with pliable sheeple who will blindly vote Democrat.. Neat trick isn't it??
5 people like this.
Reply 8 - Posted by:
seamusm 1/13/2025 8:42:53 AM (No. 1872364)
The state of California signed agreements with insurers and the Feds promising to spend millions to address fire risks - and did not do what they promised. The news repeatedly repeats that insurers cancelled policies due to that risk but neglects to report that they did so FOUR months ago - NOT the week before these fires. Residents had ample time to get their insurance affairs in order. At the end of the day these losses will be shared by all of us not just by Californians. OUR homeowner rates will also go up to cover the losses. WE will also pay for Cali voters who were profoundly stupid and most likely will remain so.
8 people like this.
Reply 9 - Posted by:
NorthernDog 1/13/2025 9:30:22 AM (No. 1872396)
New insurers will probably demand that all shrubbery and flammable trees be removed near the home. That will be a bitter pill to swallow.
7 people like this.
Reply 10 - Posted by:
paral04 1/13/2025 10:37:21 AM (No. 1872456)
Well, after this Newsome and Bass barbeque that is going on, anyone who can afford Home Owners Insurance will be lucky.
1 person likes this.
Reply 11 - Posted by:
Vaquero45 1/13/2025 10:47:35 AM (No. 1872476)
State Farm is ALWAYS the whipping boy in these situations - followed closely by Farmers.
Here's why State Farm pulled out of the fire insurance market last summer. When they stopped writing new business then, they non-renewed 30,000 homeowners policies in Los Angeles; 21,000 of them were in Pacific Palisades. They knew that place was gonna burn sooner or later. The median price of a home in Pacific Palisades before the fire was $3.5 million. Let's assume, safely, that all of those houses were total losses last week. Do the math. State Farm dodged a $73 billion catastrophe loss...
California's FAIR Plan has a $500 million exposure in this fire. They have $70 million in reserves to pay claims. They're broke.
Thanks to the California government and its insurance commissioner, pretty soon there will be no insurance companies doing business in California.
3 people like this.
Reply 12 - Posted by:
JHHolliday 1/13/2025 11:06:23 AM (No. 1872500)
I am a retired Insurance agent. I see politicians and others talking about insurance companies "canceling) policies. This is blatant misinformation. The companies can't simply "cancel: a policy mid term except for fraud or non payment of premiums. Georgia requires 30 days notice that the poicy will be non-renewed. I don't know what the notice time is in CA but it's a least that much or longer. There is also talk from politicians about not letting insurance companies leave the state. This is fatuous posturing like telling Walgreens that they can't leave simply because they are going broke from robbery and shoplifting. This sort of talk and the hostile blathering about "greedy" insurance companies combined with the massive losses are going to drive the remaining companies out of the state and leave their state FAIR plan as the only available way to get coverage. Sadly, we will all pay through increased rates and taxes for a feckless criminally run state.
2 people like this.
Reply 13 - Posted by:
JHHolliday 1/13/2025 11:08:33 AM (No. 1872501)
I am a retired Insurance agent. I see politicians and others talking about insurance companies "canceling) policies. This is blatant misinformation. The companies can't simply "cancel: a policy mid term except for fraud or non payment of premiums. Georgia requires 30 days notice that the poicy will be non-renewed. I don't know what the notice time is in CA but it's a least that much or longer. There is also talk from politicians about not letting insurance companies leave the state. This is fatuous posturing like telling Walgreens that they can't leave simply because they are going broke from robbery and shoplifting. This sort of talk and the hostile blathering about "greedy" insurance companies combined with the massive losses are going to drive the remaining companies out of the state and leave their state FAIR plan as the only available way to get coverage. Sadly, we will all pay through increased rates and taxes for a feckless criminally run state.
1 person likes this.
Reply 14 - Posted by:
jeffkinnh 1/13/2025 5:06:42 PM (No. 1872740)
If you pressure insurance companies to maximize payments to claimants, they will simply raise rates to compensate. They MUST take in enough money to be able to pay claims and make a profit. They ARE a business, DUH. So with higher rates, people will either not be able to afford insurance at all or get an economy policy that doesn't pay out as much.
Dems and too many Republicans think they can dictate economics, that's why Medicare is in trouble with doctors not accepting Medicare patients. They don't make enough money on them. Some people are not going into medicine because you can't make a decent living after all the required education and training that is required. So, less doctors. All because politicians set absurd payment rates to keep government costs down and pander to voters.
Cost control is all well and good but so is realism about services and costs.
0 people like this.
Reply 15 - Posted by:
mifla 1/14/2025 6:51:02 AM (No. 1873087)
Newsom will declare that CA will make all homeowners whole and then send the bill to Biden.
0 people like this.
Below, you will find ...
Most Recent Articles posted by "DW626"
and
Most Active Articles (last 48 hours)