Insurance Hour
KCAA: Insurance Hour (Thu, 8 Aug, 2024)
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There was a recent social media trend, which consisted of flying on a plane with no music, no movies, no entertainment. But a better trend would be going to Chumbakocino.com. It's like having a mini social casino in your pocket. Chumbakocino has over 100 online casino-style games, all absolutely free. It's the most fun you can have online and on a plane. So grab your free welcome bonus now at Chumbakocino.com. Sponsor by Chumbakocino. No purchase necessary. VGW Group. Void we're prohibited by law. 18+ terms and conditions apply. 1932.org. Buckle up everyone. You are strapped in and ready for the insurance hour. With me, your host, Carl Sussman. Informing, educating and entertaining Californians one policy at a time. This is Insurance Hour. Hello, hello. This is Insurance Hour. I am your host, Carl Sussman. Thank you so much for being here today. We are going to have an amazing show. And don't forget the phone lines are also open. You can call at 559-656-0317 or send your questions in to questions@insurancehour.com. Today we have a special special guest. We have Janet Ruiz who is the Director of Communications for what is called the Triple-I. And for those of you not in the insurance world, that is the Insurance Information Institute. Janet is based in San Francisco and was appointed as the Insurance Information Institute's Director for Strategic Communication back in January 2019. She joined the Triple-I in January of 2015 as the organization's California rep. Yeah, California. Bringing over 25 years of experience in the industry. She worked for 16 years at State Farm, including doing underwriting, management, public affairs. Nine years with Fireman's Fund. She has a bachelor's degree in business admin. And of course she's got her CPCU, part of that wonderful alphabet soup that those of us in the industry love so much. Born and raised in Alameda. She is back in California now. And Janet, there you have it. Welcome. Thank you so much, Pearl. It's great to have you here. And it's always nice to talk with a fellow insurance nerd, right? And that's really what it comes down to is you and I live and breathe this world. But my goal today is for us to be able to really talk and help consumers and regular folk understand what's going on. So before we do anything, tell me a little bit for those of those people that are paying attention. What is the Triple-I? What's the organization's history? Who do they represent and what are they all about? Thanks, Carl. The Insurance Information Institute, and we call it Triple-I, is a six-year-old insurance trade association. We don't lobby, so that is one of our differentiators. We give out credible data. We're well known for that. Our data gets used quite a bit. A lot of people use our website to collect information. You know, what's the largest storm? How much has been paid out on wildfires? Which years have the most hurricanes, et cetera? Where were they? So we have a lot of great information on our website. And then the other thing we really do a lot of is education. We help the public, which can be legislators, media, homeowners, business owners. We help folks understand insurance. What does it do? How does it work? Because it is complex, but it is a very important part of our economy and our financial resilience. It's interesting because in my mind, when I think of the Triple-I, I think of myself, agents, brokers, people in the industry, and you're saying that their primary function really is not for us. It's for consumers to have as a resource. Well, you're included in the public, but we know that you already know quite a bit. Now, I will say, though, a lot of agents and brokers also use our websites and our information. It's very helpful when you're talking to clients on the commercial or the personal side to be able to give them a real understanding. And, you know, you get questions. Probably the same ones I do all day long about why are premiums going up? What are premiums based on? Why are some companies non-remewing? So I would include you in the public that we serve. Well, that's nice because I certainly look to you for a resource as well. And since you opened up the Pandora's box because we, of course, get those same questions as well. And so you're not a specific state. You are for consumers across the country. Is that fair? That's correct. We're based in New York. We're a national organization. We are supported by insurance companies as our members. So most of the large and many regionals across the country are members. We do an economic forum for our members. Once every quarter it's coming up this Thursday. We do get a lot of brokers and agents who do a single membership just so they can get our AAA daily newsletter, which really gives you a lot of the insurance information that's out there, that's current, you know, what's happening right now, you know, what are the hot topics. So a lot of brokers are signing up and then we have, you know, larger brokerages as members. So we do get a lot of traffic from the agent and broker side. Now, if you can't explain to me a little bit because I know if I'm wondering other people probably are too. So you're saying that you're not a lot, you're not lobbying. So you're not going to Sacramento or to any other state's capital. You're not dealing with the departments of insurance trying to push any particular agenda. And you're saying that the insurance carriers are a lot of the larger members are insurance carriers. Is there any type of, I hate to say it, is there a slant? Is there any type of an agenda that you see? Or do you really do everything you can to keep everything as straight and just the facts as you can? We try to be a very credible source. And, you know, while we don't lobby, we will testify at hearings. And we do pay a lot of attention to what's going on and work with the departments of insurance. So I am based in California and I focus on the Western US. Although I handle media calls, etc. From all over the country, I just had a couple of Wall Street Journal quotes in the last week on different topics. But I do focus on the Western US and specifically California. So I have spent my whole career in California. I started in 1989. Right as Prop 103 got going, you know, it had gotten voted in, but it started getting implemented. And now I'm working with all the folks, and we do all work together even though we don't lobby. We still give out a lot of important information to educate people on why Prop 103 needs to be modernized. How it's made the insurance industry in California in a crisis right now. So I do spend a lot of time on those topics. I just don't spend my time lobbying. I hear you now that makes perfect sense and I want to talk some more about that. We're going to take a quick break and when we come back, we can jump in and talk a little bit since we're both California centric about Prop 103 and some of the challenges we have right now. Janet Ruiz is with us today and we will be back in a flash. Let's talk about earthquakes for a minute. Look, we know we live in earthquake country here in California. Powerful, devastating earthquakes have happened here before and science says that they will happen again. They can't tell us exactly when they can just tell us that it is going to happen. Count on it. Prepare for it. Did you know that earthquakes are not covered by your homeowner's insurance policy? You need a separate policy to give you the peace of mind that you will be able to recover without getting financially wiped out the next time we get hit with a big one. There's a great company here in California that will provide you with earthquake coverage you need at a price you can afford. That company is Geovera. I have a policy through Geovera. I really like how easy it is to choose from all of their great coverage options backed by the financial strength that lets me know that they will be here for me when I need them the most. Go to getquake.com/insurancehour to learn more. That's getquake.com/insurancehour. Make sure you're ready for the day when the ground shakes again. Hello hello and welcome back. This is insurance hour. I am your host Carl Sussman. Thank you so much for being here today. Remember the phone lines are always open 559-656-0317 or send your questions in to questions@insurancehour.com. Today we have a very special guest Janet Ruiz from the Triple-I. And before the break she opened Pandora's box and then the box inside the box is the box inside of that. So we're going to jump right back in there. We were talking about or just about to talk about Proposition 103 and the impact that it's having in the state of California. Janet I will give the floor to you. Thanks Carl. Well Prop 103 like I said before the break came into play in 1988 or got voted in. I started in the industry in 1989 so I've spent my whole career working through with the initiatives from Prop 103. What we've seen now though is here we are in 2024 and we're having an insurance crisis in California. Availability, affordability, and Prop 103 is one of the reasons why. And it artificially held California to lower insurance rates that weren't adequate. And so we saw this on the auto side as well as the homeowners and commercial to some extent. So what it did was it made it available for entrepreneurs from the public to come in and say you know we want more research done. We don't like this rate increase. The company XYZ filed for and sometimes it slowed the process down to two or three years. Well all of us insurance nerds know that you're not going to be caught up if you have to wait a couple years to get a rate increase. So anything under 7% they weren't intervening on. So insurance companies resorted to just putting in small 6.9 requests or 6.7 for a rate increases and this has been going on since 1989. So fast forward now we have a lot of other issues we have climate risk we are seeing in California wildfires that we've never saw or very occasionally saw wildfires that damaged homes on any significant numbers until the last five, seven years. So all these things are coming into play. Oh, and what about inflation? You know the cost of building out haste inflation. So all these things were paying for when there's losses and we're seeing catastrophic losses like we haven't seen before. Wildfire loss numbers actually came up to similar numbers as hurricanes that haven't happened in the past. So insurance companies in the 10 year period up until 2021 lost and we know combined ratio but I can explain for every dollar they took in. A dollar 8.9 I think was paid out. So that's no profit on the underwriting side and it averaged out for 10 year period. Right now I think it's even more but I don't have the you know credible fact data but I think it's between a dollar 9 and a dollar 13. So for a 10 year period no profit you know that's not a sustainable way to do business. You're for profit companies, the insurance companies, the margins have always been small but there should be some profit. What I find interesting and I want to just circle back to clarify one point with regard to Proposition 103 and the intervener process of increases that are requested above seven percent or above. The rates that are below seven percent the carriers don't automatically get those rates those rates just have to be approved by the Department of Insurance and their actuaries versus a third party is that correct. That's correct and that's a good good point it still goes through the process of approval with the California Department of Insurance and you correctly stated they can get approved they can get modified. Or they cannot get approved and then those things have all happened over the years. And that made California I think we were number 20 in the list of states as far as average premiums across the state and yet we're one of the most expensive states to build in. So I'm the building side. Yeah, we were lower than so many states. What's interesting is we understand now that carriers don't ever get an automatic increase. It still has to go through that process with the Department of Insurance and with the new regulations being proposed and that doesn't change either it still has to go through the department. But yet you hear certain organizations that are saying that the new regulations are going to create an environment where automatic increases happen every quarter. And I'm reading it and I'm trying to understand how just blatant inaccurate information can be just spewed like that when again it's not in the documents it's not in the regs it's nowhere. Well, people have made a business out of intervening and get quite an income and so they really don't like being targeted. But I listened into many of the legislative hearings and they did bring interveners in and they did really question them about how much money do you make from intervening. And the numbers are public so all that did get discussed. And I have to say that was the first time I've seen it all get spoken about publicly in my entire career. So I feel like we are making progress and the Department of Insurance as well as the legislators are really taking a serious look at how the numbers, how the rates get made. Why is it important that insurance companies make some profit? Unfortunately during that time period I feel like policy holders and insurance agents are suffering because companies had to stop writing new business or they had to non renewing areas where they had too many policies. So it's hurting the insurance industry, it's hurting the real estate industry, it's hurting the building industry. You're 100% right let's take a quick break and I want to get into that in a little more detail when we come back. Our special guest Jen Ruiz from the Triple I. Ladies and gentlemen, boys and girls, in just a few moments, the window to the magic podcast show will begin. My name is Patrick, my name is Calvin, I'm Mouse Catier Gray, my name is Paul and I will be your guide through the wonderful world of Disney sound experiences. This show is a weekly trip into the world of the Disney theme parks and resorts. And this is the place where you get to use your ears to surround yourself with the magic. For your safety please remain seated while listening to the window to the magic.com podcast. Maybe there's a name for this, something like "Diznautic" of a session. Please visit windowtothemagic.com for more information or you can find us on Apple Podcasts and in the iHeart Media app. Hello, hello, this is Insurance Hour. I am your host Carl Sussman. Thank you so much for being here today. Remember the phone lines are open if you have any questions for me or my special guest Jen Ruiz today. You can call 559-656-0317 or send your questions in anytime to questions@insurancehour.com. We have a lot of good info that we've been going over. If you've missed any part of the show, jump online and just search for Insurance Hour. You can find it as a podcast, you can find it on YouTube, iHeart, Amazon, Alexa or whatever. But find Insurance Hour, look for this episode where we're talking with Janet because you don't want to miss any of it. Janet, before the break, we were talking about how Proposition 103 has impacted the consumers in general. And one of the other parts that I wanted to mention to you because you made a good point, you said that insurance carriers need to be able to make some profit because that's how they stay in business in essence. And I'm reminded of part of Proposition 103, correct me if I'm wrong. There's verbiage that says that rates must be adequate but not excessive. Am I correct on the general justice of the way the law is written? That is correct and that is the important part of it. And the Department of Insurance spends a lot of time making sure they aren't excessive. They are hopefully adequate. However, due to the fact that it was so hard to get any rating pieces, and especially in the last few years, insurance companies weren't actually asking for adequate rates. And the public is so not aware of that. And especially if you live in a risky area and maybe you're not even with admitted carriers. So carriers who do file with the Department of Insurance and are a part of the admitted market, then they may be having much higher rates. We are also seeing some rate increases that are above the 7% now. The Department of Insurance is making an effort to be more will first of all be quicker and not let the intervener process take so long. And the governor actually mandated that this happened. So things are changing and we have a couple more things that we need to change. We need to be able to use catastrophe risk modeling that is forward looking in the rate making process. And we also need to use the cost of reinsurance because insurance companies buy insurance for themselves to make sure they can pay claims. So we need to be able to use both of those things in the rate making process. Most states allow that. California is really the only one that I'm aware of that doesn't allow that. So those two things along with the modernizing of Prop 103 and recognizing where it is good, which is, you know, that simple statement is very important that you brought up that they are adequate but not excessive, very important. We're very on board with that in the insurance industry, but the adequate part is what got left behind. So we're moving forward. It's a lot of work, you know, all hands on deck from California Department of Insurance. The insurance industry, actuarial groups, catastrophe models have been speaking at hearings, catastrophe modelers, you know, everyone's on deck and working towards making it a healthy insurance market, where we can sell more insurance. And, you know, if you get an admitted carrier, it will probably be less expensive than if you're with a surplus lines or the California Fair Plan. And certainly if we're comparing to the Fair Plan better coverage, you mentioned that the public's not aware. You mentioned that the public's not aware that over the years or decades, really, the industry has not been requesting adequate rates from the Department of Insurance. And that's important news. Why do you think that they have not been asking for the rates that they actually needed to be able to stay in business? You know, it's a combination of the length of time to actually get a rate request put through. They insurance companies actually have to pay for the interveners. So, if they take a year or two on their intervening, they're charging quite a bit of money to, and then you still may not get the rating rate. So, it was partly, you know, just the extent of work that you have to do to go through the hearings with the interveners, you know, time, money, all those things. And then, you know, as we spoke about, you know, in the early years of Prop 103, we weren't having the same type of catastrophes that we're having now. We also didn't have the same type of inflation. When interest rates were higher back then, a lot of companies didn't try to make a new writing profit. They were really having to survive off their investment profit. And that, you know, really went downhill as the interest rates went down, and it's not a great way to do business. And, you know, companies do business in all 50 states. So, you know, it's also frustrating them to have California be the one state that's so hard to do business in. We're the fourth largest insurance market in the world. You know, we want it to be a healthy market. We don't want rates to be excessive. We want them to be adequate. We want to be able to get good ratings with the groups like AMBEST. You know, and we saw one major company get downgraded by AMBEST due to the financial situation. So, you know, it really needs to be brought back into a healthy market, and we have all the tools to do it. I think what I want to do is we're going to take a quick break. When we come back, you alluded to a large company that was downgraded by AMBEST. I want to talk about that and what those implications mean, because it's not just one company that based on their size, but it's a general direction that we could be heading if things don't change. So, when we come back, we're going to talk about that mysterious company that has yet to be said. We'll talk about that. We'll talk about what AMBEST is, what it is they do, and what the implications really are when a company potentially goes from being solvent to maybe insolvent. We'll cover that with Janet as soon as we come back. This is Insurance Hour. I'm your host, Carl Sussman, and we will be back in a flash. Do you need homeowners insurance? Has your previous insurance company left the state, non-renewed your policy, or maybe they just raised your premium to an amount that you simply can't afford? Whatever the situation, we can help. Just dial #250 on your cell phone and say keyword insurance quote, and we will connect you with an agent who can assist you right away. Or if you prefer, you can visit us online at insurancehour.com/quotes. Whether you're looking for homeowners insurance or auto insurance, we'll send the best options straight to you. So, what are you waiting for? Simply dial #250 and say keyword insurance quote, and we will connect you with a live agent to help provide competitive quotes for your homeowners insurance or auto insurance. Don't get caught unprepared. Ensure what matters. With an insurance company you can trust, and with a premium that you can afford. Don't put off until tomorrow what you should have done yesterday. Simply dial #250 on your cell phone and say keyword insurance quote. Hello, hello. This is Insurance Hour. I am your host, Carl Sussman. Thank you so much for being here today. If you have missed any part of this show, you do not want to have missed any of it. Believe me, jump online, go to insurancehour.com. Find out how you can get a copy of the show. It should be available all over the place from podcasts to YouTube. Don't forget also, phone lines are still open at 559-656-0317, or send your questions in to questions@insurancehour.com. We have our special guest today, Janet Ruiz, who has been patiently waiting, and we are going to start chatting now. We started talking about a particular carrier that's had some potential financial issues. Janet, I'll let you give us the big surprise, the reveal. Well, we were talking about one of the major insurance companies that got downgraded by AMBEST as a result of the issues that are going on in California. And their surplus went from, I think, 4. something billion down to 1. something billion, which is really important because what is surplus? It's what you pay the claims out of. And so each company is very protective of their surplus. This is a company that's not stock held, they're mutual, they're excellent underwriting practices, very disciplined. So when you see this type of thing happening, and they are, again, because they're disciplined, making sure they're not writing too much in California right now, they're one of the more reasonable priced carriers, rate coverage. And these type of things are happening to most of the companies, and that's why we're seeing the restrictive writing of insurance in California right now. Do companies want to be in California? Yes. Fourth largest insurance market in the world. Fifth largest economy. It's a great place to do business when you can do it profitably. And all companies that are for profit should be allowed to make a profit. So the carrier will put some names to it. So we're talking about State Farm, who is the carrier that was downgraded from AMBEST. And just to give some quick background, why don't you tell us, explain what AMBEST does, and how that's sort of the de facto standard for financial stability. And then we'll talk a little bit more about what's happening with State Farm today. I'm Victoria Cash, and I want to invite you to a place called Lucky Land, where you can play over a hundred social casino-style games for free for your chance to redeem some serious prizes. So what are you waiting for? The best way to discover your luck is to spin, so go to luckylandslots.com, that's luckylandslots.com, and get lucky today. At Lucky Land. At your job, do you ever have to deal with a nose roller? How about a snub bully? Well if you're installing a new conveyor belt system, dealing with the different components can sound like you're speaking a foreign language. Luckily, you've got a team ready to help. Grangers, technical product specialists are fluent in maintenance, repair, and operations. So whenever you want to talk shop, just reach out. Call clickgranger.com or just stop by. Granger for the ones who get it done. Great. AMBEST is a credit rating agency. They're very well known, very credible. There are several of them. And what they do is they look at all the financials of the companies, and then they give them anywhere from an A+ down rating. So in the insurance world, if you go to a B, that's bad, because a lot of underlying coverages are also based on these credit ratings. You know, like E&O coverage for agents. You know, you can't have an underlying carrier that's B-raven. And why is the rating so important? Because it's talking about solvency. And that's also what the Department of Insurance is supposed to help protect is solvency. And that's why they're very engaged right now in working with the insurance industry to bring it back. Because, of course, they, as a regulatory agency, want to see the companies they have in the state that are admitted, be solvent. So all these things come together, but the solvency is critical. These credit rating agencies are very detail oriented. They look at the whole picture and what's to come. And if they think it's starting to wafer, that's when they do the downgrades. So it does get everyone's attention. We haven't seen any companies go out of business or go and solve it in California since the 2018 wildfire in Paradise. And we did see now's mutual go and solve it at that time. So when did that mean they couldn't pay their claims? So the guarantee fund, California guarantee fund, say, yeah, paying out claims up to 500,000. So that's what happens when a company does go and solve it, especially after a big catastrophe like the campfire. And you mentioned SEGA, the California Insurance Guarantee Association, will pay. Where do the funds come from? So in essence, when a company goes bankrupt or can't pay their claims and SEGA pays, where does that money come from? That money comes from the insurance companies. So all this is tied together. The insurance companies pay into SEGA. And then if one goes insolvent, that's where it comes out of. So you don't want to see carriers going insolvent. I'll point to Florida. We did see carriers go insolvent in Florida. They're structured a little bit different, but it sure was a mess. They're just giving their insurance issues turned around. But at this moment, they're a little bit ahead of California. So the governor has put in a trailer bill that should speed up this process of getting some of these issues taken care of. The ability to use reinsurance, forward-looking catastrophe, modeling in the rate-making process. The intervener process not to be so cumbersome and adequate rates for insurance companies. So we're working diligently on getting these things solved. The department put out a sustainable insurance program, and they expect to have it done by the end of 24. The governor then said that's not soon enough. And he put in a trailer bill to speed it up. So we're hopeful that it will be sooner rather than at the end of 24. Because once carriers have more adequate rates, it still takes a whole year to start collecting those rates and using them on renewal. Another important factor is that does that mean every single person's rates go up when there is a rate increase. It can be people who are in more risky areas or who have a worse loss record or whatever, that their rates may increase. Others may stay the same or have smaller increases. And I think that's something people don't understand. So if they see a company got a 30% rate increase or a 20% rate increase, that doesn't mean that automatically every premium is going up that much. It's a great point. I want to talk about that again. After we take a quick break, it will talk a little bit more about how rates are calculated and how they're shared with everybody. We'll be right back. Ladies and gentlemen, boys and girls, in just a few moments, the window to the magic podcast show will begin. My name is Patrick. My name is Calvin. I'm Mouse Katir Gray. My name is Paul and I will be your guide through the wonderful world of Disney sound experiences. This show is a weekly trip into the world of the Disney theme parks and resorts. And this is the place where you get to use your ears to surround yourself with the magic. For your safety, please remain seated while listening to the window to the magic.com podcast. Maybe there's a name for this. Something like "Diznautic" of a session. Please visit windowtothemagic.com for more information or you can find us on Apple podcasts and in the iHeart Media app. Hello, hello. This is Carl Sussman and this is Insurance Hour. Thank you so much for being here and learning with us today. Remember, the phone lines are still open, 559-656-0317. And you can also email any time your questions into questions@insurancehour.com. Remember, if we're not on the air or you're listening to the show as a replay, you can still call those numbers, send those emails and we will get back to you right away. Also, we're having a great conversation today with Janet Ruiz from the Triple-I, the Triple-I. I like putting it that way. And if you've missed any part of the show, be sure you go back and listen to the whole thing. You can find us on Apple podcasts, on YouTube, pretty much everywhere. Janet, before the break, we were talking about how rates are when they're requested, how it doesn't necessarily impact everybody. That you might see a request for a 10%, 20%, 30%, rate increase, but that doesn't mean that your bill is going to go up 20%, 30%. Can you explain a little bit more about how that works? Sure, that's the highest increase that when you put in for a filing for a rate increase with the Department of Insurance, it would be up to 10%, 20%, 30%. And then it's going to depend on the area that you're in, sorry, the area that you're in and what kind of risk your particular home or business is close to, are you in a wild for a risk area? Is there a lot of crime in your area, whatever, you know, there's a lot of different underwriting criteria? And then maybe the rates were already, you know, adequate in your area, so you didn't get any increase at all. So it's up to the amount. So it's not an automatic everybody's going up 30%, or 20%. But to your earlier point, like we've spoken about, for a very long time, carriers have not been getting adequate rate. And they were surviving on things like they're not underwriting profit, but on their investment income, which is a fancy way of saying they're taking the money, they're investing it, and they're making money. And that's helping to offset the fact that they're losing money because they're paying out more claims, dollars in claims, and they are collecting in premium. So now they're starting to try and they've reached that point where that balance no longer is working. What do you think we should expect to see as an industry with what carriers are going to be requesting and how that's going to find its way down to consumers? Well, I would say, you know, I've seen an increase in all my bills for my household. So I'm paying a lot more for utilities than every dreamed I would pay. I'm paying a lot more for food and gas, and if I remodel or I had to just buy new appliances, I'm spending a lot more money on those. So insurance companies are rebuilding and replacing all those things. And really similarly on the auto side, repairing and replacing, right? So we're reactive. We don't set the economy. We're not the ones that get it all started, but we react to it because we have to pay claims. And we want to pay claims. That's our promise to our policy folders. So by increasing rates, which I think people will and are seeing increases in their rates right now, we're all paying into an annual amount of money that goes back out and pays all the losses for that particular year. So we will see increases, but they may not be as dramatic as you would think. It'll really depend again on what type of risks the area you live in are. And again, it's not just wild fire. It's, you know, crime. It's all the different loss factors, response from your fire department or their hydrants near you, all those type of things. So we look at all of that, and that's how we determine the rates, what type of losses are in your area. And you could see the highest increase, but you could also see no increase at all or a very minor increase. I'm Victoria Cash. Thanks for calling the Lucky Land Hotline. If you feel like you do the same thing every day, press 1. If you're ready to have some serious fun, for the chance to redeem some serious prizes, press 2. We heard you loud and clear. So go to luckylandslots.com right now and play over a hundred social casino style games for free. Get lucky today at luckylandslots.com. No purchase necessary. VGW Group void were prohibited by law 18 plus terms of condition supply. I think it's important to also explain, if you can, that what people are hearing about anecdotally is, I was paying 3,000 and now it's 40,000. Where the truth is, that's more than likely a carrier that is no longer offering a policy and that consumer is going to a non-admitted market or an extremely high surplus line type of carrier. Can you explain the difference between what consumers should be potentially expecting from an admitted carriers rate increases versus what they've been seeing if they have to go from an admitted carrier, a preferred carrier to say a non-admitted carrier that is really the only option that's out there? Well, I think one of the carriers that people are going to in California besides the surplus lines are the California Fair Plan. And when they do that, that's a fire only policy. It's expensive because it's for all the high risk wildfire areas. So all they write in is high risk areas. So that policy is expensive and then you have to buy a whole nether insurance policy to cover your liability, theft, water damage, you know, all the other things that are covered under homeowners policy. So writing with the admitted carriers is generally going to be less expensive than the California Fair Plan or surplus lines. And it's a comprehensive policy that covers all the things you normally would have had. So it's two people's benefits. I also sometimes talk about things that people don't really look at. You know, I lived in a wildfire risk area for several years. I've recently moved. But when I did, I would say to reporters, you know, if I have 500,000 costs to rebuild, and that's what my coverage A is on the policy, which is the amount to rebuild. And a wildfire comes through and it's a total loss. Well, now it's taking two to three years to be able to rebuild because of all the issues and getting your permits and cleaning up. You know, now it's not just regular waste, but it's environmental waste. It's toxic. All those costs have gone up. So I paid, I was paying, you know, $1,200 a year. I might get paid back a million dollars in all the loss costs, you know, my costs to live somewhere. Janet, hang on. I want to hear. I want to go on with this example, but we just have to take one more quick break. We'll make it back. I want to hear the rest of that and then we'll go from there. Janet, we'll be back in a flash. Are you feeling lost in the search for the right insurance, making call after call, only to find no one willing to go that extra mile for you? At Sussman Insurance Agency, we understand that frustration and we're here to change your experience. Where other sea obstacles, we see opportunities. While many might shy away from jumping through hoops. At Sussman Insurance Agency, we are prepared to leave, looking under every rock, exploring every avenue. That's not just what we do. It's who we are. Our dedicated team doesn't just offer policies. We provide solutions. Solutions born for persistence, expertise, and a genuine commitment to finding you the best coverage possible. We don't just meet expectations. We surpass them. If you're tired of hearing no or it's not possible, it's time to turn to a team that believes in yes and let's make it happen. Don't settle for less. Reach out to Sussman Insurance Agency at 877-411-5200. Visit us online at sussmaninsurance.com or email sales@sussmaninsurance.com. Let's uncover the insurance solutions you deserve. Sussman Insurance Agency, going the extra mile every time. Hello, hello. This is Insurance Hour. I am your host Carl Sussman. Thank you so much for being here. This is our final segment. We have special guest Janet Ruiz. Thank you again for being here. And right before the break, we were talking about acclaimed scenario. Janet, I'm sorry to have interrupted you before the break. Can you tell us again? Let's go through that situation. I was just saying that I often talk to reporters about my experience living in a welfare risk area. And how, you know, a couple of years ago, I was paying $1,200 a year annually for an insurance policy with coverage to rebuild $500,000 for my coverage A, which is what rebuilds the structure. But in reality, if my house was a total loss, I would have gotten closer to $1,000,000 for that $1,200 investment. And it's not an investment. It's my premium. But for this story, because it was going to take two to three years to rebuild the house. So I had to live somewhere else. Rents are very high. And the company is going to pay for a comparable place for me to live in for those three years, the cost to just clear up the land used to be about 10 grand. And now it can be 60 to 100 grand, because it's environmental waste, it's toxic, etc. All my possessions are going to get replaced. You know, so by the time we get through the whole process, I may get back a million dollars again for that $1,200 premium. If my premium goes up to $2,400, it's still totally worth it. I would say if it goes up to $3,000 or $4,000, it's still totally worth it. And then I look at my other costs. I spend way more than that on utilities a year. I actually spend that much places like Starbucks and eating out a year. So I feel like sometimes we don't look at insurance the way we look at the other costs in our budget. It's an interesting point. You said Starbucks and I got the chills. I thought, oh, I'm not going to add up how much I spend at Starbucks. No, no, no, no, not going to do that. But it's a very good point, because when people stop and actually realize that to your point, even when premiums are going up from where they were, if you look at what the actual payout potentially still could be, and you take into effect, again, we're just talking about property insurance. This goes for most policies in general. People's homes are typically their largest investment. That's where the most of their dollars and their blood and sweat has gone. So, yeah, it's always nice to have less expenses, but if things cost more, then that doesn't mean that we don't want to protect our largest asset. And we wouldn't blink at spending for 10,000 on a vacation, but we get very upset. I get it. I don't want any of my expenses to go up either, but they're all going up. And I want my house back if it gets lost, you know, wildfire or kitchen fire. Right. So we've got a couple minutes left. I wanted to get your two cents because you really have your finger on the pulse countrywide. But since we've been talking primarily about California, what is your thought? What are you thinking right now as far as timing goes? When do you think we might see? Because I say right now currently we don't have an industry in California for property insurance because the market is basically shut down. What do you see is the timeline when we might be able to expect to see carriers start re-entering the market, start competing and actually have a property insurance market again for consumers? Well, I think it's important to also add in mitigation. And that is a part of the equation that is in all the work that we're doing with the Department of Insurance because mitigation can be for water damage, having sensors, leak, you know, sensors, as well as wildfire, et cetera. And we need to make our homes and our communities more resilient. The insurance industry puts a lot of money into research with the Institute for Business and Home Safety, who's done fantastic work countrywide for hurricane, wildfire, et cetera. So we need to get all those things continuing to take place. But generally speaking right now in California, when the Department of Insurance gets these new things in place that will bring the companies back into a healthy marketplace. And it's not just a few rape increases. We need the regulations to be in place so that it will continue to be a healthy market. So let's say they do get it done before the end of 24, then insurance companies have said publicly that they will come back in. In fact, all states have out of hearing with the legislature. Very clearly. We will come back. They said it twice to be sure I was at that hearing. They did. Yes. And so all the companies are basically saying that. So they will come back. And it takes a good year. You know, you get your policy and it doesn't renew for another year. So it takes a good year to get through all the renewals, et cetera. But I think we're going to see them coming back very quickly, because again, we want to be in California. The insurance industry should be a healthy marketing California. We can be and we're all hands on deck. Well, it's good to finally speak with someone that has the same level of optimism that I do because I've been following this as you have. And for years and years and years and watching things get worse and worse and worse to where we are today, which is basically, like I said, no, there is no property insurance to be gotten to now actually be able to sit there with a straight face and say everything is lined up to be able to get these things fixed to be able to let the carriers come back. And everyone's big question is will they come back when these regulations are put into place. And again, to your point, some have publicly said so. And I can tell you that other carriers have said so not as publicly, but everyone is on the same page. They want to make money. They want to write business in California, and they're on board with these new regulations in this sustainable insurance strategy that the California Department of Insurance and Recorder Lotter are putting into place. Janet, I have enjoyed this conversation so much. I cannot tell you. I would love to be able to get you to commit to come back as things continue to change. And if you can give us that time, I would love to have you. Again, everyone, this is Janet, who is from the triple I, and you can also, I'll put links to how you can find them online, and they are a terrific resource. As she said, for brokers and for consumers alike. Janet, I thank you so much for being here. Thank you, Carl. And with that, that will wrap us up today. You have been learning from Insurance Hour with me, your host, Carl Sussman. Everyone stay safe, take care, and we'll talk again soon. I do want to thank all of you for taking the time to listen today. I know insurance is not necessarily the most sexy concept. It's not the most exciting thing in the world. It is important that you understand what it is you're getting, what you should be looking for, red flags, you name it. You just need to know more than you used to. Things are more complicated than they used to be. If you have any questions, please reach out to me directly. You can email your questions to questions@insurancehour.com or call and leave a voicemail at 559-656-0317. Educating and entertaining Californians won insurance policy at a time. This is Insurance Hour. The show is dedicated to Shamrock Papa. E-digits. Lock 'em in for more information, recreation, and guaranteed fun. KCAA 1050AM. And now, the voices of KCAA was an exciting announcement. Want to hear NBC News or KCAA anywhere you go? Well, now there's a nap for that. KCAA is celebrating 25 years and our Silver Anniversary with a brand new app. The new KCAA app is now available on your smart device, cell phone, in your car, or any place. Just search KCAA on Google Play or in the Apple Store. One touch and you can listen on your car radio, Bluetooth device, Android Auto or Apple CarPlay. Catch the KCAA buzz in your earbuds or on the streets, celebrating 25 years of top news and excellence with our new KCAA app. Just do it and download it. KCAA, celebrating 25 years. NBC News on KCAA Loma Linda, sponsored by Teamsters Local 1932. Protecting the future of working families, Teamsters1932.org. NBC News Radio, I'm Brian Shook. President Biden says he's not confident at all a peaceful transfer of power will take place if former President Trump loses the election. In an interview with CBS News Biden said that people were not taking Trump's past comments about a bloodbath seriously. He said Trump chooses when he loves the country. "What are they trying to do now in the local election districts where people count the votes or elected? They're putting people in place in states that they're going to count the votes, right? You can't love your country only when you win." Trump has said that he would accept the results of the election if it was a fair, legal, and good election. The latest report from the National Weather Service says Debbie is picking up power as it heads back towards South Carolina to make a second landfall tonight or early tomorrow. Katie Gray has more. "With wind speeds now at 60 miles per hour and it's moving northeast at only 3 miles per hour, so it slowed down some." As rainfall pours down along the east coast, the National Weather Service suspects the increased risk of flooding may be the biggest concern moving forward. "It's greatest impacts will still be the potential for considerable flash flooding and significant long-term river flooding." Governor McMaster says not to underestimate water levels and its impact on driving conditions. "It can rise very quickly and it can take a vehicle off a road." Experts advise taking precautions over the next few days. More people are being charged in connection to the death of Devonta Mitchell, a black man who died outside of a Wisconsin hotel. Back in June, Mitchell was restrained and pinned to the ground by four security guards outside of a Hyatt in Milwaukee. The United States continued to collect hardware at the 2024 Paris Olympics. Quincy Hall won his first career Olympic medal after taking gold in the men's 400-meter final. You're listening to the latest from NBC News Radio. Located in the heart of San Bernardino, California, the Teamsters Local 1932 Training Center is designed to train workers for high-demand, good-paying jobs in various industries throughout the Inland Empire. If you want a pathway to a high-paying job and the respect that comes with a union contract, visit1932trainingcenter.org to enroll today. That's1932trainingcenter.org. Here's a look at the local news and weather from KCAA. Ami Von Fuhan. Damage assessment teams are surveying the fire-scarred hillsides of San Bernardino's Little Mountain. Firefighters have doused remaining hotspots as investigators seek the cause of Monday's Edge Hill Fire. They say the fire was human-caused and appears to have started near a powerful. Five homes in a large RV were destroyed, but there were no reported injuries. Flying embers were sent airborne by a 20-mile-an-hour wind that got into the air vents and rooftops setting the buildings ablaze. 200 firefighters initially responded, but the blaze didn't subside until the air tankers from Cal Fire reached the scene later in the afternoon. The forward spread of the fire stopped three hours after covering about 54 acres. It happened on the hottest day of the year as the temperatures hit 109 degrees. A moderately strong earthquake followed by several aftershocks struck Tuesday evenings south of Bakersfield. The USGS at the initial jolt was registered at 5.3. The epicenter was 14 miles south of Lamont and occurred at a depth of 7 miles. The USGS map showed the quakes near the San Andreas fault zone. However, the exact fault was not immediately identified. The initial tremor was felt from Los Angeles area to the central valley. Local authorities had no immediate reports of damage. Now weather-wise, inland Empire Metro, mostly sunny and not quite so hot Wednesday and Thursday. Highs in the upper 90s, clear skies at night with lows down to 68 mountains. Partly cloudy with a chance of afternoon showers and thunderstorms. Resort level highs through Friday from the 80s and to the mid 90s. Deserts, partly cloudy today in the Coachella valley with a chance of afternoon showers and thunderstorms. Highs from 101 in the northern deserts to 112 in the southern deserts. Beaches, a little change with partly cloudy afternoons and morning fog. Highs in the mid 70s surf won the 4 feet and water of 61 to 72. Southern Californians are enduring summer overheated doldrums. And there's our look at the local news and weather from KCAA. I'm Yvonne Frouhan. KCAA, where every day is a great day. KCAA, Loma Linda. Welcome to Radio Station. It's controlled chaos. Judy was boring. Hello. Then Judy discovered jumbo casino.com. It's my little escape. Now Judy's the life of the party. Oh baby, mama's bringing home the bacon. Whoa. Take it easy Judy. The jumbo life is for everybody. So go to chumpakasino.com and play over 100 casino style games. Join today and play for free for your chance to redeem some serious prizes. Chumpakasino.com. No purchase necessary for your prohibited by law. 18 plus terms and conditions apply. See what's like for details. 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