CALIFORNIA – Consumer Watchdog announced, November 15, that State Farm, Allstate and insurance lobbyists want to block an administrative judge’s decision on rate increases.
California Department of Insurance Chief Administrative Law Judge (CALJ) Kristin I. Rosi’s ruling focuses on how rate increases were approved without proper judicial oversight, as required by Proposition 103.
Rosi demands for procedural adherence to ensure fairness and transparency.
“Neutral judges are a central principle of the rule of law, which is why the voters intended that administrative law judges oversee how rates are set under Proposition 103 to prevent political interference,” said Consumer Watchdog founder and author of Proposition 103 Harvey Rosenfield.
State Farm’s income of $436 million not consistent with large rate increase
In an October ruling, Rosi identified an instance where State Farm submitted an application for an excessive rate increase.
State Farm sought a 28.1% rate increase to its Homeowner Program line, in February 2023.