New California law not good for Insurance

A new law just passed in Ca. mandates a communication strategy for consumers that outlines the nuts and bolts of homeowners insurance policies. On the heels of the wildfires, many homeowners found themselves underinsured and the State felt that warnings and education will help consumers understand what they are paying premiums for. My question is where are the agents? This is the job of the agents that sell these policies to consumers. Maybe the agents have been doing a good job and the consumers are not listening, or maybe the agents hae been lax in communicating to customers what is and what is not covered. I think it is a little of both. Either way the State getting involed to such a degree that they are doing part of an agents job is not a good thing. It is the tip of the iceberg of more regulation and oversight of the business. My warning to all agents and brokers out there if you are not communicating on a regular basis the coverages and non coverages to your clients the regulators will sooner or later.  Until next time be careful out there and know your risks. K

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