The deadline for Governor Gavin Newsom to sign a record number of bills before the end of session has passed. 7 On Your Side is digging into why numerous bills that aimed to hold insurance companies accountable failed and the money trail behind the votes.
7 On Your Side Investigates tracked dozens of insurance-related bills that were discussed or voted on this legislative session. Our analysis found a clear discrepancy between the bills that passed versus those that didn’t: money and the interests of insurance companies.
California’s insurance crisis
It’s reaching a breaking point — forcing a record number of consumers to the California Fair Plan, the state’s insurer of last resort.
It’s called that for a reason.
If you look closely at the law – the state’s plan promises to “assure stability… availability… and provide equitable distribution.”
“We pay over half of our mortgage on our insurance,” said Gigi Bannister, a firefighter and veteran who was also dropped by Farmers.
“My rates went up 1,000%,” said Bruce Breslow, a California consumer who was dropped by Farmers Insurance. “Our insurer of 20 years dropped us!”