(The Center Square) – California Insurance Commissioner Ricardo Lara provisionally approved State Farm’s request for a 22% property insurance rate hike, citing a need to stabilize the insurance market.
Lara said State Farm must justify its provisionally approved rates with data it provides in a public hearing. He also called upon the company to both halt non-renewables and secure a $500 million cash infusion from its parent company.
“To ensure long-term choices for Californians, I had to make an unprecedented decision in the short term,” said Lara in a statement. “It is evident that other California insurers are unable to absorb State Farm’s existing customers, which poses a significant risk of these customers ending up on the FAIR Plan — a scenario we all wish to avoid as my Sustainable Insurance Strategy is implemented.”…