California Insurance Faces Wildfire Moratorium Issue

The California insurance industry continues to operate in crisis mode as historically-large wildfires ravage their way across the state. As a result, many insurers have been issuing moratoriums on auto-insurance policies, despite the fact that California law prohibits such practices. Well, California Insurance Commissioner Dave Jones is aware and issued a formal notice to all insurers directing them to cease any and all moratoriums on auto-insurance policies immediately.

The regulations provided to insurers by the commissioner make clear that insurers must write private passenger auto coverage for any consumer who qualifies as a good driver.

Commissioner Jones made a statement about this issue, saying that “…buying new auto coverage or changing your auto insurance coverage any time before you experience a loss is your right as a good driver. I am committed to making sure consumers’ rights are protected, which is why I issued a notice to all property and casualty insurers writing private passenger auto directing them to stop any and all moratoriums on auto insurance and reminding them that such moratoriums and restrictions are prohibited under California Law.”.

In an effort to continue to help victims of these wildfires, the commissioner also issued a notice to insurers asking them to expedite the claims of anything associated with the wildfires and to adopt a billing grace period to help victims get back on their feet.

Most insurers agreed to the commissioners requests. While the wildfires continue to rage on, we can only hope that the worst has already happened. Hopefully these directives from the California Insurance Commissioner will help to mitigate the troubles those affected are facing.

Sources:
https://www.insurancejournal.com/news/west/2017/12/12/473826.htm