UPDATE: U.S. Representative John Garamendi delivered an urgent warning on Wednesday, claiming that insurance companies are exploiting Californians in the aftermath of natural disasters. Speaking during a panel hosted by Unlocking America’s Future, Garamendi criticized regulators for insufficient action as residents face skyrocketing premiums and claim denials.
Garamendi stated, “The first commandment for insurance companies is to pay as little, as late as possible.” His comments come amidst alarming trends showing that claims have been denied at unprecedented rates while insurers rake in record profits. He emphasized the critical need for consumers to speak out, urging those affected by rising insurance costs to contact the California Insurance Commissioner to enforce the Fair Claims and Practices Act.
The former state insurance commissioner from 2003-2007 expressed disappointment in current California Insurance Commissioner Ricardo Lara, stating that he has not done enough to protect consumers. Lara is facing increasing pressure to resign from wildfire victims as they navigate the complicated insurance landscape. “Without a principal marching order to protect consumers, they will continue to be on the short end of this,” Garamendi warned.
The urgency of Garamendi’s remarks resonates deeply with Californians, especially those like actress Elisa Jacobs Nixon, who shared her traumatic experience at the panel. Nixon described the harrowing ordeal her family faced during recent wildfires, stating, “We cannot even process this trauma because every day we are embattled.” Despite being a loyal State Farm customer for over 40 years, she revealed her family has yet to receive coverage for damages.
Industry expert Martin Weiss also contributed to the discussion, outlining six tactics insurance companies employ to evade payments. He highlighted that companies are now frequently avoiding payouts for smoke damage and refusing to renew policies, exacerbating the crisis for affected homeowners.
As the conversation unfolded, it became clear that many Californians are at a breaking point. Garamendi noted that a new election for California’s Insurance Commissioner is set for 2024, with several candidates already seeking his endorsement. He emphasized the need for future leaders to be “bulldogs” in the fight against insurance exploitation.
The stakes are high, and the emotional toll on families is palpable. Garamendi concluded, “If you want an easy job, think about the treasury.” This statement encapsulates the gravity of the situation as he calls for widespread reform in an industry that many believe has failed its most vulnerable consumers.
With mounting pressure on regulators and insurance companies, the message is clear: action is needed NOW. Californians are encouraged to stay informed and advocate for their rights as the insurance crisis continues to unfold.
