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Judge denies State Farm's request for restraining order to delay rate cuts

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Judge denies State Farm's request for restraining order to delay rate cuts

Superior Court Judge Katherine Bacal has denied State Farm General Insurance Co.'s request for a temporary restraining order to delay the implementation of rate reductions for homeowners and renters insurance, California Insurance Commissioner Dave Jones said in a statement.

"State Farm's ongoing effort to avoid complying with the order to reduce rates has to stop," Jones said in a statement. "It is time for State Farm to do the right thing by policyholders and comply with the order to reduce rates."

Jones had ordered State Farm General Insurance to cut its insurance rates by an average of 7.0%, saying the rates charged by the insurer were excessive. State Farm General Insurance filed a complaint against the commissioner in San Diego Superior Court seeking an annulment of his ruling and a stay of the commissioner's order. The court denied State Farm General Insurance's motion to block the rate reductions in advance of a court hearing on the matter.

Earlier this month, the California Department of Insurance issued a notice of noncompliance to State Farm General Insurance for alleged refusal to cut rates for policyholders who buy or renew homeowners' and renters' insurance policies from Dec. 31, 2016, to Feb. 13, 2017.