Southland

Earthquake Insurance Rate Hearing: A state Insurance Department administrative law judge will open hearings this morning on a controversial earthquake insurance rate increase sought by Farmers Insurance Group, California’s third-largest homeowners insurer. Farmers seeks to raise its rates on quake insurance by a statewide average of 174% and to impose a minimum deductible of 15% plus a co-payment of 20% on damage that exceeds the deductible. Farmers’ application is being challenged by the Economic Empowerment Foundation, an Oakland-based community organization that argues that Farmers’ rate request is not adequately justified in its filing and that policies with such high deductibles and high co-payments “render its earthquake insurance meaningless” to many consumers.