State Farm Won’t Renew Coverage , for 72,000 Homeowners in California.
The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.
The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.
State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports. .
State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports. .
This decision was not made lightly
and only after careful analysis of
State Farm General's financial health... , State Farm, via statement.
... which continues to be impacted
by inflation, catastrophe exposure,
reinsurance costs, and the limitations
of working within decades-old
insurance regulations, State Farm, via statement.
State Farm General takes seriously our
responsibility to maintain adequate
claims-paying capacity for our
customers and to comply with
applicable financial solvency laws, State Farm, via statement.
It is necessary to take
these actions now, State Farm, via statement.
However, both the insurance company and
the California Department of Insurance
will have to answer to regulators.
One of our roles as the insurance
regulator is to hold insurance
companies accountable for
their words and deeds, Michael Soller, Deputy Commissioner of the
Communications and Press Relations Branch, via CBS News.
We need to be confident in
State Farm's strategy moving
forward to live up to its obligations
to its California customers, Michael Soller, Deputy Commissioner of the
Communications and Press Relations Branch, via CBS News.
State Farm did not disclose the locations of the discontinued policies or the criteria it used for determining which policies wouldn't be renewed.
It is not yet clear if an
investigation will be launched