California regulator warns insurers over auto policy practices
The California Department of Insurance issued a formal notice to insurers directing them to cease any and all moratoriums on auto insurance and reminding them that California law prohibits this practice.
The warning comes after insurers imposed moratoriums on writing new private passenger auto policies or prohibiting additions to existing auto policies in the Southern California wildfire areas.
The regulator reminded insurers that Proposition 103 and regulations issued by the commissioner require insurers to write private passenger auto coverage for any consumer who qualifies as a good driver.
"Buying new auto coverage or changing your auto insurance coverage any time before you experience a loss is your right as a good driver," said insurance commissioner Dave Jones.
"I am committed to making sure consumers' rights are protected, which is why I issued a notice to all property and casualty insurers writing private passenger auto directing them to stop any and all moratoriums on auto insurance and reminding them that such moratoriums and restrictions are prohibited under California Law."
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