James Woods: “State Farm WASN’T There”

Didn't state farm announce months ago that they were pulling out due to the state basically crippling them...which would lead them to bankruptcy if they stayed?

They all had advance notice as required by state law..

Just so happens my youngest son is a fireman and does roofing as his side gig. He said state farm is by far the worst to deal with.

USAA has its issues but glad I'm glad to be with them.

State Farm was there. Then the politicians and regulators both insurance and regulating mitigation of public fire risk refused to allow them to charge a premium that would cover their risk or complete fire mitigation to reduce risk, so they had to pull back. Not to mention the problems with the CA court system.

Like any cancellation they had proper notice and an opportunity to find another carrier.

Same problem Louisiana and Florida have. Bad politics and bad legal systems.

Sounds like State Farm did the wise thing.

CA makes it impossible to do business in CA, and then escapes any blame for forcing insurance companies out.

See how that works?

It's not CA's fault, but big mean corporations who don't want to just hand out bags of cash to everyone until they are forced to close for losing money.

Pretty sure he had 4 months. We don’t know the intricacies of course but 4 months is a long time to find a new insurer.

And had State Farm stayed in the area they would be facing a financial crisis. Insurance companies have to weight income vs risk of payout. If risk is too high they cut risk.

Either they need to charge more or end policy writing/renewal. State wouldn’t let them increase rates so the stopped policy renewals.

In the aftermath of the last week, looks like they made a company saving decision

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BuckyCheese
State Farm was absolutely correct to pull out.

The state capped what they could charge while increasing the risk State Farm was expected to cover. Insurance companies saw this coming.

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Add that if the state policies and state action are contrary to standards to mitigate loss risk, that puts the insurance companies on the hook for poor government policies. The rest of the country ends up paying for the bad political policies that we opposes and have no control over.