{"id":14665,"date":"2025-01-09T13:26:27","date_gmt":"2025-01-09T14:26:27","guid":{"rendered":"https:\/\/wifamily.news\/?p=14665"},"modified":"2025-01-09T14:59:36","modified_gmt":"2025-01-09T14:59:36","slug":"look-to-california-fires-for-why-evers-mob-rule-proposal-should-be-doa","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=14665","title":{"rendered":"Look to California Fires for Why Evers\u2019 Mob Rule Proposal Should be DOA"},"content":{"rendered":"

This post originally appeared at https:\/\/www.bootsandsabers.com\/2025\/01\/09\/look-to-california-fires-for-why-evers-mob-rule-proposal-should-be-doa\/?utm_source=rss&utm_medium=rss&utm_campaign=look-to-california-fires-for-why-evers-mob-rule-proposal-should-be-doa<\/a><\/p>\n

As we pray for those impacted by the fires in L.A., we also know that many of those who are losing their homes and possessions do not have fire insurance. One of the main reasons is that insurers have been prohibited from charging premiums that reflect the risk. Many of these people live in an area that has a historically high risk for fire and the increased urbanization and poor fire management policies has increased that risk. Despite this, insurers can\u2019t increase premiums enough to make insuring those people viable. Why<\/a>?<\/p>\n

\n

Proposition 103<\/a>, approved by California voters in 1988, requires the \u201cprior approval\u201d of the state\u2019s insurance regulator before insurance companies can implement property and casualty rates, including homeowner\u2019s insurance.<\/p>\n

\u201cCalifornia has a consumer-friendly approach with Proposition 103, and the insurance industry hates it,\u201d said Kenneth Klein, a California Western School of Law professor and expert on natural disasters.<\/p>\n

Added Klein, \u201cThe insurance industry has been battling that proposition for a long time.\u201d<\/p>\n

Under Proposition 103 and other California insurance regulations, property and casualty insurance companies cannot take all the losses associated with one event, such as this year\u2019s wildfires, and then simply put them onto next year\u2019s rates. The state requires a longer-term trend, not a one- or two-year disaster impact.<\/p>\n<\/blockquote>\n

California\u2019s prop 103 did a few things to cap insurance premiums. It restricted insurers from passing on the cost of individual events by requiring them to only factor in the historical trend. It also prohibited insurers from creating risk models for the future. They were only allowed to look at historical data. Well, what happens when insurance customers are looking at future weather patters, the effect of urbanization, and policy choices that increase risk? Doesn\u2019t matter. The insurers can\u2019t use that data to set rates.<\/p>\n

If insurers are looking at real actuarial data that calculates a risk and the premiums necessary to insure that risk, but they are not allowed to use that data or charge those premiums, what is the rational decision? They stopped insuring people, of course. Since Prop 103 was passed, numerous insurers have left California completely and many more dropped customers if the insurers couldn\u2019t charge a rate that made insuring them worth it.<\/p>\n

It\u2019s gotten so bad, that California actually changed the rules at the beginning of this year to try to alleviate it<\/a>.<\/p>\n

\n

The regulations that take effect Jan. 2 arose\u00a0out of a broad agreement<\/a>\u00a0Lara reached with the industry that gave insurers regulatory concessions, including the use of the computer models, in exchange for a commitment by large insurers such as State Farm, Farmers and Allstate to write policies in neighborhoods prone to wildfires equivalent to 85% of their statewide market share. That would mean, for example, an insurer with a 10% share of the state\u2019s homeowners insurance market would have to cover 8.5% of the homes in riskier neighborhoods as\u00a0identified by the department<\/a>. No such requirement currently exists.<\/p>\n<\/blockquote>\n

It\u2019s a cockamamy scheme cooked up by bureaucrats that probably won\u2019t work in getting a significant number of additional people insured, but the story is that even in California, they realized that they have made it economically inviable for insurers to provide homeowners insurance and they are trying to do something about it.<\/p>\n

All this to point out that here in Wisconsin, Governor Tony Evers is proposing that Wisconsin adopt direct ballot measures like California. Prop 103, which is leaving thousands of Californians uninsured and homeless, was one of these direct ballot measures. It was an idiotic policy that passed on an emotional wave of ignorance and hate of insurance companies stirred up by activists.<\/p>\n

No, we don\u2019t want this here in Wisconsin.<\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

This post originally appeared at https:\/\/www.bootsandsabers.com\/2025\/01\/09\/look-to-california-fires-for-why-evers-mob-rule-proposal-should-be-doa\/?utm_source=rss&utm_medium=rss&utm_campaign=look-to-california-fires-for-why-evers-mob-rule-proposal-should-be-doa As we pray for those impacted by the fires…<\/p>\n","protected":false},"author":9,"featured_media":385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-14665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boots-sabers"],"_links":{"self":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/14665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14665"}],"version-history":[{"count":1,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/14665\/revisions"}],"predecessor-version":[{"id":14666,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/14665\/revisions\/14666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/media\/385"}],"wp:attachment":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}