CALIFORNIA REGULATOR TO INSTITUTE HOMEOWNERS’ REFORMS

California insurance commissioner John Garamendi is planning to issue orders later this month to make it easier for consumers to obtain and renew homeowners’ insurance. The orders are designed to counter tighter policy-issuing criteria instituted by some of the state’s largest p/c carriers. State Farm, the state’s largest homeowners’ insurer, recently placed a moratorium on new writings. Among the orders Mr Garamendi is planning is one that would give homeowners the right to review their credit scores and insurance claims records, and to correct errors in insurers’ files. Current regulations allow homeowners’ insurers to refuse to sell a policy based on an applicant’s claims record and claims made by a property’s previous owners. Speaking to the Los Angeles Times , Mr Garamendi acknowledged that some of his proposals would require legislation, but said that he had the authority to order insurers to provide consumers with their credit and claims records. “We have broad powers to force insurers to deal fairly with their customers”, he noted.