California Commissioner Questions Homeowners’ Insurance Rates

June 30, 2006

  • June 30, 2006 at 7:33 am
    Anonymous says:
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    Bottom-line is, Hartford was overcharging and lowered there rate to write some business. Those other companies got overzealous denying claims, or only paying a percentage, their loss ratios do not reflect too high of premiums, but not paying claims based on that premium. Funny, I am not sure if he realizes the real cause. Wow, just think if Las Vegas could arrogently only pay a percentage of some jackpots, or not at all. If Garamendi were on the gaming commission he would determine their windfall profits were derived from betting too much money, not that they were not paying out as agreed.

  • July 1, 2006 at 12:52 pm
    clusso says:
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    Garamendi is clueless, however, the insurance companies for the past 4 years started dealing from the bottom of the deck. The reason for the huge profit is simple, do not pay your claims as agreed, increase rates so high for making a claim that your insured\’s won\’t try to collect. Garamendi is like Leslie Nielsen in those Police Academy movies, he has caught the crooks, but he really has no clue how or why. Pay your claims as agreed and then talk about loss ratios.

  • June 30, 2006 at 1:42 am
    Compman says:
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    Garamendi is a putz. Now is he claiming to be an actuary? Well, we all know how well he did with that hat on with State Fund. I believe Saddam Hussein could do a better job as insurance commissioner than Garamendi!

  • June 30, 2006 at 2:04 am
    Tom says:
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    It would be bad enough if Garamendi made these statements merely out of ignorance, but after his years in the DOI I\’m pretty sure he knows better, which means this is nothing more than malicious and deliberate mis-information.

    For example, about 10% of the premium goes for loss adjustment expenses; another 10-15% goes for commissions – I assume agents and their employees and families are entitle to earn a living. Then, how about reinsurance costs? Salary, benefits and payroll taxes for the insurance company employees? Finally, to build up the surplus (in fact owned by mutual company policy holders) to make up for the predictable lousy years.

    I can\’t imagine how this guy can look at himself in a mirror.

  • June 30, 2006 at 2:07 am
    CA Broker says:
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    I agree Garamendi is a putz. I want to know if he intends to reimburse the losses in the event of a large earthquake or other natural disaster causing loss ratios exceeding 100%? Will the companies be allowed to recover those financial losses the following years? Or, will each year be regulated by the amateur actuary, Garamendi?

    With this system, the companies are allowed to make a \”fair\” profit but have no limits in the money they can lose? Sounds like Russia?

    Communist jerk..

  • June 30, 2006 at 2:13 am
    Jerry says:
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    Garamendi\’s comments once again show how little he understands about the business of insurance. What about commissions paid, operating expenses, prudent reserves for future losses, and a reasonable rate of profit (yes profit! insurance is not a non-profit business despite what Garamendi seems to desire!)? Where are those calculations? Since when did he become an actuary? One company with 50,000 customers lowers rates – that\’s great – but it\’s not apples to apples with four other companies with a total of 4 MILLION customers. I guess its beyond his comprehension.

  • June 30, 2006 at 2:28 am
    Agreed says:
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    At least he doesn\’t just suck on toes, he puts his whole foot in his mouth (Hoof & Mouth disease? – Mad Cow??) He continually proves he is an idiot with NO understanding of the business! He needs to go back to farming & get the hell out of the DOI!! Heaven help us if he becomes Lt. Gov. Now is the time for people to come to the aid of their state!! Get him out!!!

  • June 30, 2006 at 3:04 am
    CalBroker says:
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    Garamendi is a fool if he thinks Hartford is lowing the rates for the policyholders. Hartford is lowering their rates for their own corporate objectives……grow their book of business. Right now, Hartford is not that competitive and needs to do something.

    This guy is a typical democrat, he will say what is good for the moment. We need real insurance commissioner, one who will not drag his political agenda in everything he does.

  • June 30, 2006 at 3:34 am
    1who knows says:
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    haha

  • June 30, 2006 at 3:36 am
    Age Old Broker says:
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    I agree with the Cal Broker. We need an Independant or someone from the Green pary in there!



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