Travel

Finance

Entertainment

Yahoo!

My Yahoo!

Mail

More

New User?

Sign Up

Sign In

Help

Make Y! your home page

Yahoo! SearchSearch:

Primary Navigation

Home

U.S.

Business

World

Entertainment

Sports

Tech

Politics

Elections

Science

Health

Most
Popular

Secondary Navigation

Politics
Video

Elections

White
House

Congress

U.S.
Government

World

Supreme
Court

Press
Releases

Search: All News Yahoo! News Only
News Photos Video/Audio Advanced

FTCR Obtains Hearings Into Proposed Earthquake
Rate Increases

Fri Jun 15, 3:18 PM ET

ADVERTISEMENT
<SCRIPT language='JavaScript1.1' SRC="http://ad.doubleclick.net/adj/N553.ae.yahoo/B2255641.30;abr=!ie;sz=300x250;dcopt=rcl;click=http://us.ard.yahoo.com/SIG=12hjq56bn/M=595158.10901935.11491171.2811175/D=news/S=82389257:LREC/_ylt=A0WTcU8C13NGP18BswAJKekE/Y=YAHOO/EXP=1182004002/A=4590914/R=1/*;ord=1181996802496057?">
</SCRIPT>
<NOSCRIPT>
<A href="http://us.ard.yahoo.com/SIG=12hjq56bn/M=595158.10901935.11491171.2811175/D=news/S=82389257:LREC/_ylt=A0WTcU8C13NGP18BswAJKekE/Y=YAHOO/EXP=1182004002/A=4590914/R=2/SIG=13d0fhcto/*http://ad.doubleclick.net/jump/N553.ae.yahoo/B2255641.30;abr=!ie4;abr=!ie5;sz=300x250;ord=1181996802496057?">
<IMG SRC="http://ad.doubleclick.net/ad/N553.ae.yahoo/B2255641.30;abr=!ie4;abr=!ie5;sz=300x250;ord=1181996802496057?" BORDER=0 WIDTH=300 HEIGHT=250 ALT="Click Here"></A>
</NOSCRIPT>

To: LEGAL AFFAIRS EDITORS

Contact: Carmen Balber, +1-310-392-0522 ext. 324, or Pamela Pressley,
+1-310-392-0522 ext. 307, both of the Foundation for Taxpayer and Consumer
Rights

SANTA MONICA, Calif., June 15 /PRNewswire-USNewswire/ -- The Department of
Insurance ordered hearings this week into proposed earthquake rate increases by
Geo Vera and Fireman's Fund in response to filings by consumer advocates at the
Foundation for Taxpayer and Consumer Rights (FTCR) to block those rate increases
as excessive.

The Department of Insurance granted two hearings in response to FTCR's rate
challenges this week:

* FTCR's petition to block a 6.8% rate increase proposal by Geo Vera,
California's largest independent earthquake insurer, could save policyholders a
minimum $44 million.

* FTCR's challenge to a proposed 25% increase in Fireman's Fund's earthquake
insurance rates could save each of the company's earthquake policyholders $356 a
year.

"Earthquake insurance customers with Geo Vera and Fireman's Fund must be
protected from these excessive and unjustified multi-million dollar rate hikes,"
said Carmen Balber, consumer advocate with FTCR.

A previous challenge filed by FTCR saved Safeco's California earthquake
insurance policyholders $19.3 million; FTCR has saved over $800 million for
drivers, homeowners, and doctors through rate interventions since 2003. See the
chart: http://us.rd.yahoo.com/dailynews/usnw/pl_usnw/storytext/ftcr_obtains_hearings_into_proposed_earthquake_rate_increases/23404901/SIG=11ngipj5i/*http://www.consumerwatchdog.org/images/InsSavings.gif

Both hearings were granted under the rules of voter-approved Proposition 103,
which requires insurance companies to justify rate changes prior to imposing
increases, and allows consumer groups like FTCR to challenge excessive rates and
request public hearings. The Insurance Commissioner must grant a hearing if a
requested rate change exceeds 7%, as was the case with Fireman's Fund's proposed
increase.

FTCR challenged Geo Vera's rates as excessive primarily because the insurer
seeks to pass through $44 million in unjustified reinsurance costs to its
policyholders, an amount which makes up over 50% of its requested rates. FTCR's
petition also alleges that Geo Vera failed to disclose information about costs
of the company's reinsurance despite a clear requirement for the company to
provide it under new prior approval regulations effective April 3, 2007. It also
challenges the company's failure to provide any evidence that its catastrophe
model used to predict future losses uses the best available data or meets the
appropriate actuarial standards.

"Geo Vera is trying to slip a rate hike by the Insurance Commissioner by
refusing to disclose its costs. Prop 103 requires insurers to open the books and
justify premiums to protect consumers from such unwarranted increases," said
Balber.

Experts working with FTCR found Fireman's Fund's requested earthquake rate
hike is excessive, includes unjustifiable profit margins and does not use a
credible model to determine future losses.

SOURCE Foundation for Taxpayer and Consumer Rights

-0-

Email
Story

IM
Story

Printable
View

Politics
News

Clintons
sell possibly troublesome stock AP

Campers
provide boost to other campaigns AP

Senators
troll for immigration votes AP

Clinton
speaks out on stem cell research AP

Romney
woos anti-abortion activists AP

Most
Viewed - Politics

Pentagon
may drop mental health question AP

Official
close to attorney firings quits AP

US
launches new offensive in Iraq AP

Gay
candidate for mayor challenges Dallas image Reuters

Clintons
sell possibly troublesome stock AP

Politics
News Video

Vet's
Try New Fat Loss Medication CBS 13 / CW 31 Sacramento - Fri Jun 15,
9:29 PM ET

Are
U.S. troops mental health needs met? AP - Fri Jun 15, 8:31 PM ET

Republicans
And Democrats Join Forces For Sake Of Convention WCCO Minneapolis -
Fri Jun 15, 8:03 PM ET

Wounded
Veterans Bike From White House To Montauk Point's Lighthouse CBS 2 New
York - Fri Jun 15, 6:39 PM ET

Sponsored Links

( What's
this? )

Don't
Quit Your Job

Take classes online and earn your degree in less than 2
years.
www.ClassesUSA.com

Refinance
and Save $1,000S

$150,000 Mortgage for $483/month. Compare up to 4 free
quotes.
www.pickamortgage.com

Mortgage
Rates Fall Again

$430,000 Loan $1299/mo. Think you pay too much? No SSN
required.
www.LowerMyBills.com

Elsewhere on the Web

CNN.com
Conservative
bloggers in full revolt over immigration

ABC News
Romney's
Pro-Life Conversion: Myth or Reality?

USATODAY.com
Dems
push spending increases in House bills

ADVERTISEMENT

SEND US YOUR PHOTOS!

Campaign
trail

Following the presidential campaign? Submit pictures of candidates,
supporters, and events to You Witness News.

Featured IN YAHOO! NEWS

Election coverage and analysis from Congressional Quarterly.

» More from
Congressional Quarterly

Yahoo!
- My Yahoo! -
Mail

Search: All News Yahoo! News Only
News Photos Video/Audio Advanced

Primary Navigation

Home

U.S

Business

World

Entertainment

Sports

Tech

Politics

Science

Health

Travel

Most
Popular

Odd News

Opinion

Copyright © 2007
Yahoo! Inc. All rights reserved.
Questions
or Comments
Privacy
Policy -Terms
of Service - Copyright/IP
Policy - Ad
Feedback