In a bulletin released today, California Insurance Commissioner Ricardo Lara ordered insurers to make partial refunds for at least six specific lines of insurance, including private passenger automobile insurance. The order comes in consideration of the statewide stay-at-home order issued last month.
Via the bulletin: “The COVID-19 pandemic has severely curtailed activities of policyholders in both personal and commercial lines. As a result, projected loss exposures of many insurance policies have become overstated or misclassified. This is especially true for policies where premiums are based partly on measures of risk such as number of miles driven, revenue, and payrolls which have all dropped significantly because of COVID-19.”
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