FRESNO, Calif. (FOX26) — A former California insurance commissioner is criticizing the state’s current insurance regulator, Ricardo Lara, as wildfire survivors continue to call for changes in the insurance industry.
A new report claims insurance companies canceled thousands of policies while continuing to post profits.
“We are living in a daily exhausting adversarial process that has become a second full time job for me,” said Elisa Jacobs Nixon, a wildfire survivor from Altadena.
For survivors in Altadena, the fires may be out, but the struggle continues.
“This has deepened the trauma,” Nixon said.
Homeowner Elisa Jacobs Nixon said her insurance company delayed and denied claims related to smoke damage, making recovery more difficult.
“State Farm is minimizing the damage, challenging independent testing, contradicting CIH recommendations for safe and effective remediation, conducting peer reviews of our reports, delaying sharing reports,” Nixon said.
She is not alone. A report from Unlocking America’s Future found insurance companies canceled more than 250,000 California policies between 2020 and 2023.
During that same period, the insurance industry made $164 billion in investments.
“The current commissioner has failed his obligations to the consumers and similarly failed his obligations to the insurance companies, holding them financially accountable,” said Congressman John Garamendi, a former California State Insurance Commissioner.
Unlocking America’s Future held a press conference where Garamendi, who served as California’s first elected insurance commissioner, criticized insurers for raising rates, canceling coverage, and facing little accountability.
“Unfortunately, it is of no use whatsoever unless there are some policemen out there and some judges who are willing to enforce that law to make that law a reality. And hold the companies to the law. The current commissioner has not done it.”
Since 2019, insurance premiums have surged. State Farm received approval for a 17% rate increase for 2025 and then requested an additional 11% hike.
As private insurers scale back, many homeowners have turned to the state-backed California Fair Plan.
“In 2024, California Fair Plan and other insurance companies operating in Florida closed 46% of all homeowner claims with no payment. That’s nearly double the denial rate of 20 years earlier,” said Dr. Martin Weiss, founder of Weiss Ratings.
Weiss said regulators must require insurers to disclose delays and cancellations so homeowners can prepare.
“It’s like California’s, it’s a state-run plan, and it’s supposedly the insurer of last resort. But it’s using the same kinds of tactics in many situations as the privately run insurers. So it’s not exactly a haven of good practices and benefits for the average homeowner,” Weiss said.
“Now insurance companies are pushing families to the breaking point,” Nixon said.
FOX26 reached out to the California Department of Insurance press office but did not receive a response.
The department did respond to ABC10 in Sacramento, saying:
“Despite the misleading political attacks, major insurance companies are committing to stay and grow in California. This marks a major turning point. We will be getting people off the fair plan. Consumers, homeowners, nonprofits, and small business are going to be able to get coverage on their own terms,” Lara said. “Our priority is to safeguard wildfire survivors from unfair and illegal insurer practices by ensuring a thorough review of complaints and facts related to potential violations, while facilitating the prompt payment of claims.”
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