This week we won another major battle for consumers.
Earlier this year, after considering the evidence and actuarial analysis submitted at a public hearing, I ordered State Farm to reduce its excessive residential insurance rates by an average of 7%, saving consumers $84 Million annually.
I also ordered State Farm to rebate $110 Million in excessive rates they had collected. State Farm sued me to challenge both orders and to undermine Proposition 103’s consumer protections from excessive insurance rates.
The superior court rejected State Farm’s request for a stay of my order reducing excessive rates State Farm imposed on consumers. This means my order remains in effect saving consumers $84 Million annually. The court stayed my rebate order pending trial, but told State Farm to keep track of consumers eligible for the rebates. I am confident we will ultimately prevail at trial because the law and the facts are on our side.
Regardless of the number of lawsuits insurers file, I will continue to defend consumers’ rights to be free from excessive insurance rates. And consumers’ rights to a rebate of excessive rates.
Thank you for the privilege of serving as Insurance Commissioner.
Sincerely,
DAVE JONES
Insurance Commissioner
