California
Insurers overstated projected losses during California rate hike request, nonprofit says
Insurers overstated projected losses during California rate hike request, nonprofit says
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on
Business Practices | Insurance
A Consumer Watchdog analysis found auto and home insurance companies overstated projected losses and inflation trends by millions of dollars when asking the California Insurance commissioner for double-digit rate increases late last year.
The nonprofit advocacy group says it challenged the rate hikes, which ultimately resulted in lower rates approved and a total savings of $884.8 million for California policyholders, according to a press release. Allstate and State Farm also agreed to lift restrictions on sales of new auto policies the companies implemented in 2022, the release said.
“California’s insurance market is in upheaval — insurance companies have created shortages by limiting sales of new policies across the state while at the same time pressing the insurance commissioner for massive premium increases,” said Pamela Pressley, Consumer Watchdog senior attorney, in a press release. “With mounting pressure on the commissioner by insurance companies to swiftly approve insurance companies’ requested rate hikes, close scrutiny of rate requests and consumer participation in a public, data-driven review process is more important than ever.”
Farmers Direct Property and Causality Insurance, a division of Farmers Insurance, stopped writing new policies in California in September.
California Insurance Commissioner Ricardo Lara said last month that the state is looking into consumer claims about difficulty in securing auto insurance.
Consumer Watchdog was able to challenge the proposals under California Proposition 103, the release said. The proposition requires insurers to publicly open finances to prove they need requested rate increases.
Challenges Consumer Watchdog made relative to auto policies after reviewing proposals included:
State Farm Auto
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- Overstated projected claims payments
- Inflated projections for bodily injury and uninsured motorist claims
- Failed to meet state law by removing costs for institutional advertising or advertising designed to improve the company’s image.
Allstate Auto
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- Overstated projected claims payments
- ailed to meet state law by removing costs for institutional advertising or advertising designed to improve the company’s image.
- Violated California Proposition 103 by limiting access to auto insurance products
GEICO Auto
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- Overstated projected claims payments
- Failed to meet state law by removing costs for institutional advertising or advertising designed to improve the company’s image.
- Claimed 25% of expenses were attributable to sales through agents but the company closed sales offices in California in 2022. In-house employees make policy sales over the phone or on the Internet.
- Proposition 103 violations by using education and occupation as rating factors.
Similar challenges were made on homeowners relative to inconsistent net income for 2021 and inflated or unsupported projections for claims payments and rate calculations.
Through Consumer Watchdog’s challenges, Allstate will offer the same payment plan options for new and renewal policies to comply with Proposition 103, according to the release. Pacific Specialty Homeowners also will remove underwriting guidelines denying coverage for properties not showing pride of ownership or condemned dwellings.
Repairer Driven News previously reported that Allstate received the rate increase in California after CEO and President Tom Wilson made statements about dropping insurance consumers there if rates weren’t increased. He also threatened to drop costumers in New York and Jersey where he also received double-digit rate increases.
Two insurance companies recently requested double-digit increases in West Virginia, according to Insurance Journal. Progressive Classic Insurance Co. requested a 19.78% increase and Farmers Direct Property and Casualty Insurance Co. asked for a 19.9% increase.
A Value Penguin and Lending Tree report says auto insurance rates have increased by 29% nationwide since 2018. Rates increased 11.2% in 2023 and is expected to increase by 12.6% in 2024, it said.
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Featured image courtesy Bill Oxford/iStock
Graph courtesy of Consumer Watchdog
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California
Amazon halts high-speed e-bike sales in California following fatal crashes
Orange County’s top prosecutor said Amazon has agreed to stop California sales of certain e-bikes that can go faster than state speed limits following a series of fatal collisions.
The announcement, first reported by KCRA, comes on the heels of an April consumer alert by California Attorney General Rob Bonta that highlighted a rise in deaths related to e-bike and motorcycle crashes.
“We are seeing a surge of safety incidents on our sidewalks, parks, and streets,” Bonta said in a statement. “To ride a motorcycle or moped, you need to have the appropriate driver’s license and comply with rules of the road.”
Bonta’s alert stated that pedal-assisted e-bikes cannot exceed 28 mph. Throttle-assisted e-bikes are limited to 20 mph.
Amazon had continued to sell e-bikes with speeds over 40 mph. Amazon did not immediately respond to a request for comment.
Electric bikes and motorcycles have become increasingly popular in the last few years, particularly among teens. But the surge has been shadowed by a spate of deadly crashes.
Orange County Dist. Atty. Todd Spitzer has charged at least three parents with allowing their children to ride electric motorcycles illegally, calling the vehicles a “loaded weapon.”
Spitzer noted in a post on X that Amazon said it removed e-bikes advertised with speeds over 40 miles per hour after KCRA contacted the company.
“The company said it has removed the examples provided and is investigating compliance for similar products,” Spitzer wrote.
That includes an Orange County mother, who faces an involuntary manslaughter charge after her son allegedly struck an 81-year-old man with an electric motorcycle. The 14-year-old boy had been doing wheelies on an e-motorcycle
A 13-year-old boy on an e-bike in Garden Grove died earlier this week after veering into the center median and hurtling onto the roadway. The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle, authorities said.
Amazon’s new sales limits come as the Los Angeles City Council pushes to keep electric bikes of off most city recreational trails, arguing they are a threat to hikers. E-bikes would still be allowed on designated bikeways, such as along the L.A. River.
California
After exile, California tribes could help run their ancestral redwoods again
Daniel Felix, 10, looks out from atop a gargantuan stump of an old-growth redwood on his tribe’s ancestral land. Once, this forest on California’s North Coast was replete with the ancient behemoths that can live beyond 2,000 years.
Only a fraction are left now, depleted by a logging company before the state acquired the forest in the 1940s.
This is unique public land, Jackson Demonstration State Forest, spanning 50,000 acres. Trees are plentiful here, but they might not live a millennium. California’s 14 demonstration forests are required to produce and sell timber to show — or “demonstrate” — sustainable practices. Money from logging — roughly $8.5 million a year — pays for management of the forests by the California Department of Forestry and Fire Protection, or Cal Fire.
Daniel’s tribe, the Coyote Valley Band of Pomo Indians, has pushed to rein in the cutting — spearheaded by his late great-grandmother, Priscilla Hunter. They’re part of a diverse coalition that includes environmental activists, local politicians and other tribes.
Now they may finally get their wish. Assemblymember Chris Rogers (D-Santa Rosa) has introduced a bill that would nix the forests’ logging mandate, instead prioritizing values such as carbon storage, wildfire resilience and biodiversity.
The bill represents the latest chapter in a region legendary for fierce battles over logging, and it marks an uncommon alliance between tribes and the environmental movement.
Under Assembly Bill 2494, there could still be logging, but it would have to support those new principles, and the forests would be funded differently.
And it proposes another significant change. It would pave the way for giving tribes a say in managing the lands for the first time since they were forcibly evicted more than a century ago, and for integrating Indigenous knowledge — like cultural burning — into the forests.
“It’s what we dreamed of,” said Polly Girvin, Hunter’s former partner and a retired lawyer focused on Native American issues. “And to have it come true? I’m used to movements that sometimes take 30 years in Indian Country to get to the justice you’re seeking.”
Kids play in the stump of an ancient redwood during a potluck held after the spirit run in Jackson Demonstration State Forest last month.
(Paul Kuroda / For The Times)
Some backers say the bill offers a new economic path forward for communities behind the so-called redwood curtain. With the decline of logging and cannabis, they see tourism driven by ultramarathons, mushroom foraging and other outdoor activities as a financial savior.
“If we had an increase of 10% of visitors coming to our county because of recreational opportunities, that would more than surpass all of the timber tax in our county,” Mendocino County Supervisor Ted Williams said, projecting an increase in money from a lodging tax.
But the push to reshape forest management is fiercely opposed by loggers and mill owners, who say their work is sustainable and provides blue-collar jobs in a region where they’ve dwindled. Already California imports most of its wood from Oregon, Washington and Canada.
“California has the most rules and regulations of anywhere in the world so all they’re doing is exporting the environmental impact to somewhere else, still using the product,” said Myles Anderson, owner of a logging company in Fort Bragg founded by his grandfather. “It’s pretty disgusting, really.”
Anderson believes the bill will greatly reduce logging, even stop it altogether. In his office, with photos of him and his father at a logging site decades ago, he points out it’s sponsored by the Environmental Protection Information Center. Why else would they and other environmental groups “support it if they didn’t see the same thing that I’m seeing?”
Last month, activists who have sought to rein in logging at Jackson held their first major gathering in about four years, galvanized by the bill that they see as a significant step in the right direction.
(Paul Kuroda / For The Times)
A new but old fight
About five years ago, community members caught wind of plans to chop down towering redwoods within Jackson, near the coastal town of Caspar. Priscilla Hunter would come out to the forest “and could hear them crying — it was our ancestors,” said her daughter Melinda Hunter, the tribe’s vice chairwoman. “Then she had to protect [the trees].”
Environmental activists and Native Americans, not historically allies in the region, joined forces to fight it. “Forest defenders” camped out high in the canopy and blocked logging equipment with their bodies. Some were arrested.
The uprising harked back to the 1980s and 1990s, when iconic environmentalist Judi Bari led Earth First! campaigns against logging in the region. Many of the old tree sitters — white-haired and brimming with stories of Bari — have come out of the woodwork for the latest battle.
For them, it was a win. Cal Fire paused new timber sales and, citing public safety, halted some that were underway — including one expected to generate millions of dollars for Myles Anderson’s logging company.
“We were left with nothing,” Anderson said.
Then, last year, Cal Fire approved the first harvest plan since that hiatus. It riled up the sizable, ecologically minded community.
Jessica Curl, 47, remembers growing up nearby “in a terrain of trunks” as trucks carried out logs. Now the redwoods are regrowing, “gorgeous” and gobbling carbon, she said.
“We’re so lucky to live in an area where we have this amazing climate-change mitigation tool, that if we would just leave it alone would do this amazing work that we’re trying to think of all these cool, inventive things to do.”
Isidro Chavez receives burning sage, or smudging, after a run in Jackson Demonstration State Forest. Smudging is a ritual used to cleanse spaces and individuals of negative energy, promote calm and improve mood.
(Paul Kuroda / For The Times)
Tears of grief, resolve
A group of “spirit runners” — a Native American tradition of bringing prayer — sprinted through the heart of Jackson forest as rain poured through the canopy. The mid-April event marked activists’ first major gathering since protests wound down in 2022.
Attendees gathered in a circle to wait for them. Misty Cook, of the Sherwood Valley Band of Pomo Indians, read a statement as eyes misted all around:
“All the living things around us, they miss us. They miss the language. They miss our touch, our hands, touching all of the things — the water, the plants. They miss the songs. They miss the beat of our footsteps and our voices, and they miss the children’s laughter and play, which was so important. They want us to gather them, to use them and to share them. Otherwise they will get sick and possibly die.”
Cal Fire launched a tribal advisory council to bring Indigenous perspective into Jackson. But some local tribes say it’s not enough because they lack decision-making power.
When the runners arrived, the circle absorbed them. Then they continued on to the site of a controversial proposed harvest, Camp Eight. They wrapped a bandana that belonged to Priscilla Hunter around a small tree — a quiet, somber act where she took her last stand. Runners took turns embracing the trunk.
Redwoods at the Capitol
In March, Rogers’ bill cleared a committee and is now in the Assembly Appropriations Committee’s suspense file. A hearing is set for Thursday.
Funding is a major point of contention. Environmentalists say funding these forests with timber operations incentivizes cutting bigger trees. Cal Fire maintains decisions are driven by forest health, not industry demand.
AB 2494 would fund the forests through a tax on lumber and engineered wood products. The shift could create “[o]ngoing state costs and cost pressures of an unknown but potentially significant amount, possibly in the low millions of dollars annually,” according to a legislative analysis.
The California Forestry Assn., a timber industry trade group, says the idea is a nonstarter.
Cal Fire declined to comment on pending legislation but Kevin Conway, the agency’s staff chief for resource protection and improvement, said its nearly 80-year history managing Jackson reflects “care and attention.” Since the state acquired the forest, “we have more trees on the landscape, more habitat and those trees are trending larger,” he said.
For the tribes who have rallied and prayed, a burning question is whether the land will again reflect their vision, or remain shaped by decisions made by others.
Buffie Campbell, executive director of the InterTribal Sinkyone Wilderness Council — co-founded by Priscilla Hunter and one of the groups supporting the bill — said young people wouldn’t be able to fathom the significance of the legislation passing. Maybe that’s a good thing.
“Maybe they don’t need to know about all the fighting that we have to do before they get to go out and enjoy and be tribal guardians stewarding their land.”
California
Two GOP candidates for California governor participate in Bakersfield forum
BAKERSFIELD, Calif. (KBAK/KBFX) — Two Republican candidates seeking California’s top office were back on the campaign trail and made a stop in Bakersfield on Saturday.
The California Young Republicans and Kern County Young Republicans co-hosted a forum featuring Chad Bianco and Steve Hilton. The event follows two gubernatorial debates last month in which both candidates appeared alongside several Democrats.
The forum happened on Saturday afternoon at the Liberty Center on California Ave.
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The forum came as mail voting is underway ahead of California’s June 2 primary, where the top two vote-getters will advance to the November general election regardless of party.
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