GARAMENDI PUSHES NEW HOMEOWNER BILL OF RIGHTS COMMISSIONER OUTLINES HIS FIVE-POINT PLAN.Byline: Brent Hopkins Staff Writer SHERMAN OAKS - After failing to prevail in court in his two-year fight against home insurers, Insurance Commissioner John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. announced new regulations Thursday to curtail cur·tail tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict the practice he calls ``use it and lose it.'' Garamendi has long sought changes in the law to prevent insurers from canceling homeowners' policies after they file claims, but has been stymied as companies successfully challenged his previous efforts in court. His latest effort requires carriers to clearly tell consumers under what circumstances their policies will be canceled, outlined in a five-point plan he calls ``The Homeowners Bill of Rights.'' ``What the heck heck interj. Used as a mild oath. n. Slang Used as an intensive: had a heck of a lot of money; was crowded as heck. [Alteration of hell. do you buy insurance for?'' he said in an interview. ``What's the purpose of having insurance if you get canceled when you use it? It doesn't make any sense to me.'' He outlined his goals in a wide-ranging speech delivered to the Valley Industry and Commerce Association, saying if insurers have concerns about homes, that they should price their policy accordingly. As part of the new plan, regulations require insurers to disclose why consumers are rejected for insurance, which policies are excluded and any changes to rating or underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . That sounded good to VICA VICA Vocational Industrial Clubs of America VICA Video Conferencing Alliance (UK) VICA Vocational Industrial Chapters of America VICA Vision Counsel of America board-member Scott Murphy, whose Granada Hills home suffered damage during the January storms. With an 80-foot-tall pine tree lying across his patio patio In Spanish and Latin American architecture, a courtyard open to the sky within a building. A Spanish development of the Roman atrium, it is comparable to the Italian cortile but provides more seclusion, possibly due to Moorish custom. The patio of the contemporary U.S. and $8,000 worth of cleanup costs, he wasn't sure whether he should use his homeowner's policy to handle the damage. ``It was a serious debate whether to do it myself,'' he said before Garamendi's speech. ``With the dollar amounts involved, I took the risk of getting dropped or having my premium raised. I'm hopeful they won't drop me.'' The insurance industry dismissed the new regulations as ``a political scare tactic.'' According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Pete Moraga, a spokesman for the Insurance Information Network of California, carriers already comply with most of the regulations and most claims are covered without dropping the customer. ``Part of the problem is that people don't understand their policies,'' he said. ``We realize that it's not fun, exciting reading, but people don't verify the information until there's a problem. They've already got to sign a form saying they understand it, so how much more can you do?'' Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion