Ahead of a decision from California’s insurance commissioner on a State Farm General request for emergency rate increases, company executives and representatives of a consumer group pled their opposing cases in letters to Commissioner Ricardo Lara.
News outlets in California reported earlier this week that Commissioner Lara is leaning toward a solution that would have State Farm Mutual Automobile Insurance Company, the parent company of State Farm General, shoulder more of the burden of the California homeowners company’s financial struggles. (See, for example, “California insurance chief says he’s near ‘solution’ on State Farm rate hike – Daily News“)
While such reports have not been confirmed by Carrier Management, State Farm executives addressed the possibility in a March 11 letter to the commissioner and at a hearing on Feb. 26.
Reiterating in-person remarks at the hearing from Keesha-Lu Mitra, State Farm General’s senior vice president and general counsel, the letter from Mitra, Dan Krause, president and chief executive officer of State Farm General, and Mark Schwamberger, vice president and treasurer, said that “the State Farm Mutual Board is compri