THE COMMISSIONER OF INSURANCE ISSUES A WARNING TO INSURERS WHO OWN AUTOMATIC PREMIUM REIMBURSEMENTS TO CONSUMERS DUE TO HOME STAY ORDERS IN CASE OF PANDEMIC
East County Press Service
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November 5, 2021 (Los Angeles) – California Insurance Commissioner Ricardo Lara issued the following statement after three insurance companies complied with his order to submit additional data to the Department of Insurance on premium refunds automobiles they provided to consumers during the pandemic and as a result of state and local public health orders to “stay at home”. On October 5, he ordered Allstate, CSAA and Mercury to respond within 30 days or face legal action.
“My top priority is protecting consumers. Allstate, Mercury and CSAA responded to my order with data on the premium refunds they provided to policyholders and their claims experience during the pandemic period. My department will assess the data and determine the amount of additional premiums that each insurance company owes its policyholders. “
He adds: “I have been clear that half measures and incomplete actions are not enough. My goal is to have an accurate and fair determination of the appropriate amount of premium refund for each insurance company. In this matter, and in all the matters before us, we will continue to hold insurance companies accountable and protect consumers.
“This new phase represents a final and final warning to other insurance companies that have not adequately reimbursed premiums to consumers. These companies must provide policyholders with a comparable amount of data-driven additional premium refunds and promptly report their actions. We are ready to take all necessary measures to ensure that consumers are treated fairly. “
Commissioner Lara published his first bulletin urging insurance companies to grant partial premium relief on April 13, 2020 (Bulletin 2020-3). He extended this order in two follow-up bulletins on May 15, 2020 (Bulletin 2020-4) and December 3, 2020 (Bulletin 2020-8). The bulletins asked insurance companies to report to the Insurance Department the amount of premium they were refunding, whether it was a partial refund, dividend, credit, or whatever. form of payment, and other measures. Check out insurance company reports on the Insurance Department’s website.
Commissioner Lara’s actions have saved California drivers $ 2.4 billion to date through premium refunds.
While all of the top 10 private passenger insurance groups offered partial premium relief ranging from 10 to 22% for the months of March to May 2020, Commissioner Lara announced in March 2021 that insurance companies were continuing to reduce their premiums. overcharging drivers.
The Insurance Department sent letters to Allstate, CSAA and Mercury on October 5, 2021, ordering them to respond within 30 days or face legal action.