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Thursday, June 8, 1995 Home Edition Section: Business Page: D-3 State OKs Farmers' Plan to Raise Quake
Insurance Prices; Underwriting: Quackenbush allows 138% average increase, exceeding
recommendation.; By: THOMAS S. MULLIGAN Quackenbush signed the approval order last Friday, partially overruling an administrative law judge who had recommended a 121% rate hike. Farmers, like other major insurers, has virtually stopped writing new homeowners insurance in California, fearing additional exposure to earthquake losses. State law requires companies that sell homeowners insurance to also offer earthquake insurance. After losses estimated at $1.7 billion from the Northridge earthquake, Farmers' financial strength ratings were downgraded by major ratings agencies. Quackenbush's approval of the new rate plan would enable
Farmers to begin "a selective return to writing new homeowners business in California
on a limited basis," the company said in a statement Wednesday. But it did not say
when, and a spokesman declined to go beyond the statement. ---- START OF CORRECTION ---- Earthquake insurance rates--Farmers
Insurance Group said it |
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