The proposal of Insurance Commissioner Ricardo Lara is expected to solve California’s insurance crisis.
Insurance Commissioner Ricardo Lara’s plan to solve the crisis of insurance in California. (Photo: CAI-CLAC)
Insurance Commissioner Ricardo Lara’s Plans
California’s top insurance regulator, Insurance Commissioner Ricardo Lara, has proposed regulations that would require major insurers to cover a certain share of homeowners in the state’s most wildfire-prone areas.
In exchange for Insurance Commissioner Ricardo Lara’s proposal, the Department of Insurance will allow companies to charge higher premiums to cover the rising costs of doing business in fire-ravaged regions.
The plan by Insurance Commissioner Ricardo Lara aims to reverse the exodus of private home insurers from the state, which has escalated due to escalating wildfire risk, rising construction costs, and the global price of reinsurance.
However, the proposal of Insurance Commissioner Ricardo Lara has drawn mixed reactions, with some consumer groups expressing concerns about its efficacy and impact on premiums.
According to a published article by Dessert Sun, Insurance Commissioner Ricardo Lara’s proposal was due to the legislators previously failing to find a resolution to the issue.
Such failure prompted Insurance Commissioner Ricardo Lara to act independently.
A Positive Trade-Off
In a published article by CallMatters, the insurance industry representatives view the proposal of Insurance Commissioner Ricardo Lara as a positive trade-off, consumer advocates argue that the proposal of Insurance Commissioner Ricardo Lara favors the industry over consumers.
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