Southern California News Group | May 20, 2024
Newsom finally acts to slow insurers’ exit
Amid an insurance crisis that pushed property insurers to exit California’s market, Gov. Gavin Newsom penned an executive order that “urges Insurance Commissioner (Ricardo) Lara to take swift action to address issues with the insurance market and expand coverage options for consumers.”
Well, the words “swift action” apparently don’t mean the same thing to the state Department of Insurance as they do to the rest of us. Newsom issued that order in September 2023 – and here we are in the same mess eight months later. Last month, two additional insurance companies notified the department of their plans to exit California.
Meanwhile, speculation increases that the state’s insurer of last resort – the bare-bones FAIR (Fair Access to Insurance Requirements) Plan – could face insolvency as desperate homeowners overburden that system. Without action, this insurance crunch can threaten housing markets and our economy.