By Stephen Hobbs | Sacramento Bee
Gov. Gavin Newsom’s administration released a highly-anticipated proposal meant to speed up California’s review of price increases for home and automobile coverage that the governor said weeks ago was needed to provide urgent help while the state faces severe insurance turmoil.
The draft version released Tuesday requires the Department of Insurance to more quickly evaluate price hikes that companies must request and have approved before they go into effect. Yet the plan was immediately met with the threat of a legal challenge.
The time it currently takes the agency to sign off on rate changes has frustrated insurers, who argue higher prices are needed to stem losses due to catastrophic wildfires, growing risks from climate change and inflation. Major companies have limited and cut back coverage in recent years, leaving Californians with fewer options to turn to and bills that jump every year.
Read more at: Sacramento Bee
