FAIR Plan Enrollment Spikes 20K in 4th Quarter, Exceeding Total Policies Promised Under Commissioner Lara's Plan, Says Consumer Watchdog [Yahoo! Finance]
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Source: Yahoo! Finance
In contrast, six insurance companies that sought rate hikes under Insurance Commissioner Lara's "Sustainable Insurance Strategy" have said they will sell 8,111 new policies in areas dubbed "distressed" over the next two years. "The FAIR Plan added more policies in the last three months than the Commissioner's strategy will add in the state in the next two years," said Consumer Watchdog executive director Carmen Balber. "We're still losing more coverage than we gain even as insurance companies use the new rules approved by Commissioner Lara to justify hundred-million dollar rate increases." See the FAIR Plan Total Dwelling & Commercial Policies In Force here The FAIR Plan's high cost, low benefit policies, are a last resort for consumers who cannot find home insurance in the standard market. Its continued growth indicates the ongoing insurance crisis, said Consumer Watchdog. One insurance company that never reduced its sales in California, Mercury, is responsible for a quarter
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