California Insurance Commissioner Orders Premiums Returned To Businesses

California Insurance Commissioner Ricardo Lara has ordered insurers to return premiums from certain lines to businesses and consumers. This has raised pressure on those insurers to take larger steps to reduce customer financial burden caused by COVID-19.

The California Insurance Commissioner’s order applies to six different coverage lines. These include passenger and commercial auto, commercial multi-peril, workers compensation, commercial liability, and medical malpractice.

Lara’s order also includes certain other types of coverage lines that could face losses due to the coronavirus outbreak.

Many major insurance companies across the country have already started offering credits to their auto and motorcycle policyholders. This is to compensate them for the reduced risk they represent as they are not driving nearly as much.

Most Americans have been ordered to stay at home in order to slow the virus’ spread. This reduction in the number of miles driven has also reduced the chance that they would be involved in a collision.