California warns: carriers bending rules to ward off clients
California pushed back against what it considers “passive-aggressive tactics” by automotive carriers in the state to put up barriers for drivers to secure and maintain auto insurance for which they legally qualify.
“These alleged passive-aggressive tactics by insurance companies to slow down drivers’ access to coverage are unacceptable, dangerous, and will not be tolerated,” said Insurance Commissioner Ricardo Lara.
Lara issued a Bulletin to personal auto insurance companies throughout the state following receipt of “numerous complaints” from consumers who claim to have had issues obtaining auto insurance coverage. Bulletins are often leading indicators of pending enforcement action, Lara's office warned.
The consumer complaints that the Department received were regarding waiting periods, questionnaires, and other practices. Such practices require regulatory approval much like rate changes, the commission notes.
Auto insurance companies in California are required to offer and sell insurance to all persons who qualify as “Good Drivers”, those who have been licensed for at least three consecutive years, have no more than one point on their driving record, and were not principally at fault as the driver in a motor vehicle accident that resulted in bodily injury or death of any person.
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