CA Insurance Commissioner’s Order to Fireman’s Fund Will Save Homeowners $35.1M
Under an order issued last week by Insurance Commissioner Poizner requiring Fireman's Fund to lower its premiums by 17.9%, California homeowners insured with the carrier will save a total of $35.1 million per year. The savings come as a result of Proposition 103's prohibition on excessive rates and will lower each policyholder's premium an average of $512 per year. The rate decrease must take effect within 60 days of the order, issued June 20.
Consumer Watchdog challenged Fireman's Fund's original request for a 5.6% rate reduction, arguing that the company used illegal costs, excessive profit levels and inflated loss projections to calculate the original request. Discussions between the Department of Insurance, Fireman's Fund and Consumer Watchdog resulted in final agreement on the 17.9% rate decrease. It also requires a new filing to confirm the rate is not excessive in 18 months.
"California homeowners with Fireman's Fund insurance will save $35 million a year thanks to consumers' ability to challenge excessive profits under Proposition 103, savings that can make a real difference for homeowners struggling with skyrocketing gas, food and electricity bills," said Consumer Watchdog attorney Todd Foreman. "Consumer Watchdog will continue to keep a spotlight on insurance rates to ensure California consumers get the savings they deserve."
The savings will go to over 68,000 Fireman's Fund homeowners insurance customers.
Published on June 27, 2008
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