Insurers at a hearing in San Francisco today blasted California Commissioner John Garamendi saying he was overreaching with a second regulatory effort to prevent insurers from canceling homeowners' policies because they file a claim.
Sam Sorich, president of Association of California Insurance Companies said the Department of Insurance's proposed new homeowners regulations exceeded the agency's authority to adopt standards that involve underwriting practices.
Mr. Garamendi announced the regulations in April aimed at discouraging the practice known as "use it [insurance] and lose it." An earlier attempt by Mr. Garamendi to craft such a regulation was knocked down by the courts after an insurance industry argument that he lacked authority to make such rules.
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