The Jillian Michaels fitness guru shares his concerns about the reinstatement efforts of the California forest and more on “The Bottom Line”.
The state of California approved the request from the State Farm to a two -digit increase in home insurance premiums to help the insurer meet financial challenges as a result of forest fires that devastated communities near Los Angeles in January.
California’s insurance commissioner, Ricardo Lara, adopted a court proposal on Tuesday which will allow the Ferme de State to move forward with an increase in insurance rate of intermediate owners of 17% in the State. It is less than the initial request of the insurer of an increase of 21.8%.
Under the terms of the ordinance, which will come into force on June 1, the California subsidiary of State Farm will receive a infusion of $ 400 million from its parent company to ensure its solvency, and will participate in a full rate audience on a later date. The insurer is also prohibited to implement non-renewal programs for blocks until the end of this year.
“I balance all the facts. Protecting all the customers of the state farm and the integrity of our insurance market is an urgent issue,” said Lara.
The victims of forest fires not receiving help from Fair Plan: “I’m going to have to fight with them for the next three years”
The request of the state FARM for an increase in provisional emergency rates was approved by the Californian insurance regulator. (Patrick T. Fallon / AFP via Getty Images / Getty Images)
“Let me be clear: we are in an insurance crisis on a state level, affecting millions of Californians. Taking it requires difficult decisions. It is not a game. It is not a time focused on the media to exploit-it has an impact on the people I am determined to protect,” he added.
State Farm General (SFG) said in a statement that the commissioner’s provisional approval is a “first critical step” for the company’s ability to continue serving customers in California, adding that it “must always continue to build sufficient capital for the future”.
A framework of the State Farm dismissed comments on premium increases after California forest fires
View of damaged structures and houses caused by Palisades forest fires in the Pacific Palisades in Los Angeles on January 11, 2025. (Axelle / Bauer-Griffin / GC Images / Getty Images)
“With this interim approval of the rate, SFG will obtain from its parent company, State Farm Mutual (SFM), an advance of 400 million dollars under a surplus of note to be issued by SFG, subject to regulatory approval. SFG would be forced to reimburse the excess of tickets and interests in time, submarine, because customers outside California should not be expected to The rich in California, “said the company.
He added that he did not stop the group’s non-renewal for the rest of 2025 for house owners, tenants and owners of non-rental condominiums, as well as rental properties.
The State Farm requests an increase in emergency rates which could increase the premiums of Californians by 38%
A view of a beach property ravaged by a fire overlooking the peaceful ocean that burned following the fire of Palisades in Malibu, California, on January 12, 2025. (Frederic J. Brown / AFP via Getty Images / Getty Images)
“We remain focused on helping our customers to recover from forest fires. On May 12, we have already paid more than $ 3.51 billion and manages more than 12,692 complaints,” added State Farm.
S&P Global Ratings has degraded the credit note of State Farm General of “AA” to “A +” because of what it called a “significant deterioration of its capital position and its regulatory solvency ratios”. The change of rating does not affect the other affiliates of state agricultural groups.
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