Lawmaker Urges Action as Insurance Companies Exploit Californians
URGENT UPDATE: U.S. Representative John Garamendi has raised alarming concerns about home insurance companies exploiting Californians in the wake of natural disasters. Speaking during a panel hosted by Unlocking America’s Future on October 25, 2023, Garamendi criticized the lack of action from regulators, stating, “The first commandment for insurance companies is to pay as little, as late as possible.”
Garamendi, who previously served as California’s first elected insurance commissioner, emphasized that claims denial is a long-standing issue, first experienced during the 1991 Oakland Hills fire. The Congressman specifically called out current California Insurance Commissioner Ricardo Lara, asserting that he has failed to protect consumers adequately. “Without a strong mandate every day, consumers will continue to suffer,” Garamendi stated.
As the state faces skyrocketing insurance premiums and record rates of claims denials, Garamendi urged individuals affected by rising costs or inadequate coverage to contact the California Insurance Commissioner. He encouraged residents to enforce the Fair Claims and Practices Act, saying, “Put together a clear attack on the insurance industry.”
The urgency of these claims comes as California prepares for an election next year for a new insurance commissioner. Garamendi has stated that he is demanding candidates prove their commitment to consumer protection before receiving his endorsement. “The current commissioner has failed his obligation,” he declared, highlighting the crucial need for accountability.
Panelist Elisa Jacobs Nixon, an actress from Altadena, shared her harrowing experience of losing her community to recent wildfires. Despite being a long-term State Farm customer, Nixon stated, “We have not received coverage,” highlighting the emotional toll of navigating the insurance process through trauma. “We are living in a daily, exhausting adversarial process,” she said, referring to the struggle of dealing with claims amidst personal loss.
Martin Weiss, developer of the Weiss score for insurance firms, detailed tactics insurance companies employ to avoid payments, including refusal to renew policies and denying claims for smoke damage. “This is a deliberate strategy by the insurance companies,” Weiss asserted, underscoring the urgency for reforms in insurance practices.
As the state grapples with the consequences of climate change and increasing natural disasters, the pressure mounts for regulatory changes to protect consumers from predatory insurance practices. Residents are advised to stay informed and proactive in advocating for their rights as the situation continues to develop.
Stay tuned for more updates on this critical issue impacting thousands of Californians.
