Insurance Companies Sue to Halt Rollbacks
Several leading California insurance companies filed lawsuits in Los Angeles Superior Court challenging state Insurance Commissioner Roxani Gillespie’s plan for implementing Proposition 103 rate rollbacks. The suits seek an immediate halt to rollback proceedings and a court order overturning various parts of Gillespie’s decision in June detailing the method for rollbacks.
The suits challenge Gillespie’s decision that 11.2% constitutes a fair and reasonable rate of profit for insurance firms and that anything above that is subject to rollback and refunds. The proposed regulations are subject to Insurance Department hearings set for July 18 in San Bruno. Among the insurance companies filing suit were State Farm Mutual Auto and Fire and Casualty Cos., Allstate Insurance Co., Safeco Insurance Co. of America, Mercury Casualty Co., Government Employees Insurance Co. and Hanover Insurance Co.
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