Capitol Updates
An Update from Insurance Commissioner Steve Poizner
Posted: Tuesday, August 7, 2007
When I campaigned last year for California Insurance Commissioner, my message was that we need to prepare California for natural disasters, fight insurance fraud, reduce the number of uninsured motorists and drive down insurance rates. That message resonated with voters and, with your help, we were able to defeat then-Lieutenant Governor Cruz Bustamante in a landslide victory.
During my first months in office, I have been working hard to deliver on those promises. From a devastating agricultural crisis to a disastrous fire season, I have acted swiftly to help victims of the Central Valley agricultural freeze and Lake Tahoe's Angora fires.
In the Central Valley, I moved quickly to cut red tape and help our agricultural communities get back on their feet. In Lake Tahoe, I deployed initial response teams within hours of the blaze to assess the damage and begin the process of helping local residents. In Tahoe I have partnered with local law enforcement to protect homeowners. On the heels of the fire we arrested five contractors illegally preying on victims. In addition, we are educating residents about potential scam operations.
Our fraud investigation teams are cracking down on insurance fraud across the state. In just six months our fraud sweeps have busted auto theft rings in Los Angeles, shut down the sales of fake insurance policies, and exposed medical insurance fraud in Orange County. In addition, I recently called for a 14.2% decrease in workers' compensation rates.
Finally, last week I announced that GEICO had worked with the Department of Insurance to reduce their auto insurance rates. I am glad that I was able to approve a $65 million reduction in rates for GEICO's 436,000 California customers. This will result in a total savings of $65 million - or $150 per driver. I will continue to work to drive down rates for California families.
While it has been a successful few months, our work has just begun. I will continue to fight fraud across the state, cut insurance rates for Californians, help California's families prepare for disasters, and reduce the number of uninsured motorists on the road.
If you have any insurance-related issues, be sure to contact the Department of Insurance's toll free Consumer Hotline: 1-800-927-HELP.
Sincerely,
Insurance Commissioner Steve Poizner
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