California residents will no longer be able to apply for State Farm business or personal property insurance plans, as insurance firms have been departing disaster-prone states.
California is a climate battleground, with residents facing the worst wildfire season on record, a 23-year mega drought, and catastrophic flooding.
State Farm is no longer accepting applications for business or personal property insurance policies due to California’s catastrophic exposure and a spike in construction costs. This move does not affect current home policy holders or auto insurance with the five years of intense weather.
Janet Ruiz with the Insurance Information Institute explains California’s Proposition 103. which requires prior approval from the state’s insurance department before implementing rates, has kept rates in California artificially low for admitted licensed carriers.
This is due to California’s Proposition 10-3, which has kept rates in California artificially low for admitted licensed carriers in this state.
Jessica Bennett’s family was among those who lost their home in the 2018 campfire, which destroyed more than 18 thousand structures. The Golden State is facing increasing challenges to ensuring against disaster.
Source: Steve Patterson NBC News Los Angeles, Also check out State Farm Jobs in Illinois USA.
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