On Monday, the 13th of April 2020, California’s Insurance Commissioner, Ricardo Lara, a 45-year-old Democrat who has been serving as the 8th Insurance Commissioner of California since 2018, said in a statement that the Californian insurers had been ordered to return premiums to their consumers alongside businesses, forging more pressures on to a straining US insurance industry in order to allay the financial fallouts of the pandemic.
On top of that, the California’s Insurance Commissioner, Ricardo Lara had also added in his Monday’s (April 13th) statement that the premiums paid for the three months between March and May, must have to be returned for six particular insurance sectors such as passenger and commercial auto, commercial multi-peril, medical malpractice, commercial liabilities and workers’ compensations.
More importantly, latest order from the Californian Insurance Authority had also included any kind of insurance sector that had been facing off the risks of severe shortcomings due to the pandemic. Meanwhile, as many US Insurers had already begun to offer credit lines to auto policyholders due to a sharp decline in driving due to the forced lockdown measures, Lara said on Monday’s (April 13th) announcement, “With Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss.
Today’s mandatory action will put money back in people’s pockets when they need it most,” adding that the returns of the premiums ought to be made no later than August.