Friday, 08 October 2021 10:35

CA Insurance Commissioner Orders Allstate, Mercury, CSAA to ‘Close the Gap’ on Auto Insurance Refunds


...all property and casualty insurance companies doing business in California in lines of insurance impacted by the pandemic to make appropriate premium refunds to consumers.


As the pandemic continued, Lara extended his refund order through June 2020 and beyond “as conditions warrant.”


Most recently, in March, Lara ordered insurance companies to continue to provide appropriate premium refunds or credits as the department obtained further data showing the risk of loss had fallen dramatically, and insurance companies had overcharged consumers.


The department’s analysis found, from March to September 2020, insurance company groups returned on average 9% of auto premiums, but the department’s analysis found they should have refunded nearly double that amount---17%---over the seven-month period. As a result, many insurance companies overcharged consumers for their private passenger automobile.


The three insurance companies named in the order have 30 days from Oct. 5 to respond.


“While some insurance companies have provided some relief, our department will continue to seek out and analyze data to make sure all insurance companies adhere to my orders,” said Lara. “Protecting consumers is my top priority. We will use every means we have available to hold insurance companies accountable for their actions during the pandemic.”


Source: California Department of Insurance


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