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State insurance reforms, catastrophe models aim to expand coverage; homeowners urged to report problems
Summary
A California Department of Insurance representative outlined state rules and new catastrophe models designed to move high‑risk homes from the Fair Plan back to the private market, and urged Laguna Beach residents to report claim or rate problems so the department can investigate.
Brenda Caloca, a representative of the California Department of Insurance, told a Laguna Beach town hall that the department is rolling out a set of reforms intended to modernize underwriting and expand private market access for homes in wildfire‑prone areas.
Caloca said the reforms center on a publicly regulated catastrophe model that insurers may use for rate‑making only if they meet a market‑share caveat and other conditions. “The catastrophe model is a tool,” she said, and it “gives [insurers] a rate making of what their rates are going to be” rather than relying on historical loss data.
The department has approved three catastrophe models so far, Caloca said, and insurers seeking to use those models must go through department review. She added the models include reinsurance cost and are intended to reward homeowners who take mitigation steps by reflecting those measures in risk scores and premiums.
Caloca described additional legislative and regulatory changes the department is implementing or monitoring, including measures she identified as: AB 3074 (referred to during…
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