California Insurance Commissioner approves State Farm rate hike
California Insurance Commissioner Ricardo Lara granted State Farm's request for large rate increases despite the company's mistreatment of wildfire victims and questionable business practices.
Key Points
- State Farm granted rate increases despite mistreatment of wildfire victims
- California had been faulted for restricting insurance companies from raising rates to adjust for future wildfire risk
- Commissioner Lara faced criticism for his handling of the rate hike approval process
Pros
- State Farm can adjust rates to account for future wildfire risk
- Approval of rate hike may help State Farm continue operations in California
Cons
- State Farm mistreated wildfire victims by lowballing repair estimates
- Commissioner Lara has been criticized for being too close to the insurance industry