Insurance companies ordered to give refunds to Californians due to coronavirus

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Drivers and business owners in California should get full or partial refunds on at least two months’ worth of insurance premiums because of the coronavirus-induced restrictions. smasunaga reports:

. “Today’s mandatory action will put money back in people’s pockets when they need it most.”

The order to retroactively adjust insurance premiums applies to at least the following coverage areas: private passenger and commercial auto insurance; workers compensation; commercial multi-peril, which covers a variety of losses; commercial liability; and medical malpractice.Sign up for the latest news, best stories and what they mean for you, plus answers to your questions.

Customers should receive the refunds no later than August. They should come in the form of a premium credit, reduction, return or some other form of adjustment, the insurance commissioner’s office said. The American Property Casualty Insurance Assn. expressed dissatisfaction about Lara’s order. In a statement, the trade group said that “private competitive markets will work to the benefit of consumers” if insurers are given more flexibility. It noted that some insurers had“Now is not the time for arbitrary calls for rate decisions,” David A. Sampson, the group’s chief executive, said in the statement.

 

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smasunaga How about giving homeowners a break on property taxes and lower them for the same time period as well?

smasunaga Just canceled my auto renewal of AAA. Will risk a flat on my 2 mile bi-weekly grocery store trip.

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