ILLINOIS – Illinois -based state agricultural insurance affirms that bad weather is increasing in Illinois, which leads to a higher insurance rate. But Governor JB Pritzker has a message for the company: proving it.
What we know:
Pritzker has tweeted that the proposed prices increases are “arbitrary and unfair”, accusing the State Farm to modify the costs outside the State on the owners of Illinois.
However, the State Farm website explains that the owners will pay more than $ 500 million in increased premiums, because the company pays more in the complaints it receives in bonuses and operates at a loss. The company also quotes inflation and an increase in violent weather events such as wind, hail and tornadoes.
“If they want to increase the rates of half a lust dollars – an increase of almost 30% of a drop – they should have to show their mathematics and justify why taxpayers must pay these higher rates,” said Abe Scarr, head of the Illinois public interest research group.
Scarr has said that insurance costs have increased by 50% in the past three years. Senator of the Democratic State of the southern suburbs, Mike Hastings, said that the state of the farm had misleaded legislators by stating that the prices stabilized before hiking them.
“Insurance companies are to be expected, Paris. Nothing turns on a fire under the buttocks of a suburban father than being told one thing, then another happens,” said Hastings.
Hastings sponsors a bill which would prohibit insurers from adopting the costs of disasters outside the state to the owners of Illinois.
“Whether forest fires in California or hurricanes in Florida – this should be explicitly prohibited in law and this is not the case.”
Its bill would also require that the State and other insurers are transparent on how they calculate their rates before the approval of an increase. Scarr said he was thinking that the Insurance State Department should have the power to reject or reduce proposed rate increases.
“In the end, they do not have the capacity to modify this rate increase at the moment and we think it should change,” said Scarr.
In addition, State Farm increases places of places and the decrease in payments of complaints, creating a triple blow for the owners. Hastings said he would try to advance the bill during the veto session this fall.