State Farm begins first-of-its-kind insurance coverage fee listening to as we speak

From CalMatters financial system reporter Levi Sumagagsay:

State Farm will attempt to justify its want to boost property insurance coverage charges — stat — at an unprecedented public fee listening to beginning as we speak.

Charge hearings are uncommon and often scheduled months prematurely. This one’s totally different as a result of California Insurance coverage Commissioner Ricardo Lara known as it swiftly a few month in the past, after State Farm made a singular request: It requested Lara to instantly approve emergency interim fee will increase of a median 22% for owners, 15% for renters and condos, and 38% for rental dwellings. State Farm stated its funds are strained due to the Los Angeles County fires, from which it expects to pay greater than $7 billion in claims.

A listening to over emergency interim charges has by no means occurred earlier than.

State Farm has pending fee requests from final summer season — a separate fee listening to about these will occur by June — however stated it wants to extend charges as quickly as attainable. Underneath California regulation, the general public can object to fee will increase and intervene, which may then result in a fee listening to. The insurance coverage division and an intervenor, Shopper Watchdog, have been searching for extra details about the corporate’s funds. Whereas State Farm has stated it has offered that info, it’s anticipated to supply additional particulars at this week’s listening to.

The listening to on the insurance coverage division’s Oakland workplaces will probably be held earlier than an administrative regulation choose, who will resolve if it must take up all three scheduled days, by way of Thursday. The listening to will probably be livestreamed. If the choose approves State Farm’s fee will increase, they may turn out to be efficient June 1 and will have an effect on the corporate’s practically 3 million prospects within the state.

The drama over California’s largest insurer’s fee request comes as Lara tries to revive insurance coverage availability within the state and cut back the variety of insurance policies within the FAIR Planthe hearth insurer of final resort. His new laws took impact firstly of the 12 months.

For individuals who assume a 2 a.m. final name for California bars is a tad too early, a invoice by two San Francisco lawmakers goals to prolong nightlife in some metropolis districts till 4 a.m.

As CalMatters’ Yue Stella Yu explains, Assemblymember Matt Haney and Sen. Scott Wienereach Democrats, are reviving a invoice that might permit eating places and bars in choose, domestically outlined “hospitality zones,” to serve alcohol till 4 a.m. on Fridays, Saturdays and state holidays.

With Los Angeles and Santa Clara internet hosting World Cup video games in 2026, and Los Angeles internet hosting the Olympics in 2028, invoice proponents argue that the measure would assist revitalize post-pandemic nightlife throughout California cities. Wiener has tried and failed thrice to advance comparable laws, although Gov. Gavin Newsom signed a regulation final 12 months extending alcohol gross sales till 4 a.m. solely for Los Angeles Clippers VIPs inside the world.

Opposition to previous payments embody advocacy teams involved with the harms attributable to alcohol. Assemblymember Tom Lackeya Palmdale Republican and former freeway patrol officer, additionally criticized the present invoice, calling it “the worst policy I have voted on in my whole time being in office.”

Learn extra right here.

California group faculties have lengthy struggled with scammers who use synthetic intelligence bots to pose as college students with a purpose to receive hundreds of thousands of {dollars} in monetary support. Now, the newest knowledge reveals that the issue is worsening, writes CalMatters’ Adam Echelman.

Final 12 months CalMatters reported that from September 2021 to December 2023, greater than $5 million of federal support and practically $1.5 million in state support went to scammers. The California Neighborhood Faculties Chancellor’s Workplace additionally reported in 2024 that about 25% of faculty candidates had been seemingly pretend.

However now the most recent findings present it’s round 34%, and faculties have reported that within the final 12 months, $10 million in federal {dollars} got away to pretend college students and over $3 million in state cash.

The difficulty isn’t seemingly to enhance anytime quickly. Along with their very own cybersecurity and pupil authentication measures, faculties partly depend on the U.S. Division of Schooling to assist discover scammers. President Donald Trump’s administration has been working to dismantle the division, and since his return to the White Home, the workplace that administers federal support has misplaced about half its employees.

• John Hettsan government on the info group on the chancellor’s workplace: “When you direct less resources to combating fraud … you’re going to get more fraud.”

Learn extra right here.