A GOOD MORNING EVERYONE I'D
LIKE TO CALL THE JOINT HEARING
OF THE SENATE INSURANCE
COMMITTEE IN THE ASSEMBLY AND
INSURANCE COMMITTEE TO ORDER
I WANT TO THANK YOU EVERYONE
FOR BEING HERE I CERTAINLY
WANT TO THANK NAPA VALLEY
COLLEGE FOR HOSTING US I ALSO
WANT TO THANK SENATOR DODD AND
ASSEMBLY MEMBER AGUIAR-CURRY
FOR HOSTING US HERE IN THEIR
DISTRICTS AND FOR ALL YOUR HELP
AND COOPERATION AND PUTTING
TOGETHER A PANELS THAT WILL
BE HEARING FROM -- LATER THIS
MORNING I CERTAINLY WANT TO
THANK AND WELCOME THE CHAIRMAN
OF THE ASSEMBLY INSURANCE
COMMITTEE CHAIRMAN DAILY
FOR BEING HERE AND THANK YOU
YOU AND YOUR COMMITTEE STAFF
FOR ALL YOUR GOOD WORK AND
PUTTING TOGETHER OUR PROGRAM
TODAY ALSO ONE AT RECOGNIZE A
REPRESENTATIVE REPRESENTATIVE
FROM THE DEPARTMENT OF
INSURANCE WHO IS HERE WITH
THE RAISE YOUR HAND FOR FOR
THE DEPARTMENT OF INSURANCE
THANK YOU SO IF PEOPLE HAVE
ISSUES AND QUESTIONS -- YOU
NOW KNOW WHO TO TALK TO US AS
THE HEARING ACT INCLUDES I ALSO
WANT TO THANK ALL THE PANELISTS
WILL BE HERE TODAY AND AND MANY
OTHERS WHO HAVE TRAVELED MANY
LONG DISTANCES TO BE HERE AND
TO SHARE WITH US THEIR WISDOM
ON THIS IMPORTANT TOPIC WE'RE
HERE TO LOOK AT THE RECOVERY
OF HOMEOWNERS IN COMMUNITIES
IMPACTED BY THE TWO THOUSAND
SEVENTEEN WILDFIRES THROUGH
THE LENS OF THEIR INSURANCE
THE TWO THOUSAND SEVENTEEN
FIRES RESULTED IN ALMOST SIXTY
EIGHT THOUSAND CLAIMS WORTH
ABOUT FOURTEEN BILLION DOLLARS
ALMOST TWELVE BILLION OF THAT
HAVE BEEN CLAIMS BY HOMEOWNERS
I IN THIS AREA ALONE THE TUBS
NONE AND ALICE FIRES DESTROYED
ALMOST EIGHT THOUSAND HOMES
OUR COMMITTEE STAFF HAS BEEN
TOLD THAT ONLY ONE HOUSE HAS
BEEN COMPLETELY REBUILT AND
NAPA COUNTY UNINCORPORATED
CINEMA COUNTY REPORTS ONLY
SEVENTEEN HOMES COMPLETED
THE RECOVERY PROCESS HAS BEEN
INCONSISTENT EVEN WITHIN THE
SAME CITY THIRTY HOMES HAVE
BEEN REPORTEDLY BEEN COMPLETED
IN COFFEE PARK IN SANTA ROSA
BUT ONLY ONE -- IN FOUNTAIN
GROVE WE HEAR STORIES OF
PEOPLE WHO ARE HAVING TROUBLE
REBUILDING THEIR HOMES BUT IT
ISN'T ALWAYS CLEAR WHAT THE
OBSTACLES ARE OR TO WHAT EXTENT
INSURANCE PROBLEMS ARE SLOWING
THINGS DOWN OUR GOAL OF THIS
HEARING IS TO FIND OUT WHETHER
HOMEOWNERS ARE HAVING TROUBLE
TAINING THE FUNDS THEY NEED TO
REBUILD AND WHAT IF ANYTHING
THE STATE CAN DO TO HELP OUR
FIRST PANEL TODAY WILL FOCUS
ON THE PROBLEMS THE PEOPLE OF
THIS REGION HAVE EXPERIENCED
WITH THEIR INSURANCE COVERAGE
SINCE THE TERRIBLE FIRES A YEAR
AGO WITH FASTER WITNESSES TO
DESCRIBE THE PROCESS ENSURES
USED TO ADJUST AND PAY CLAIMS
AND WHETHER THAT PROCESS HAS
WORKED FOR THE PEOPLE WHO LOST
THEIR HOMES IN THIS DISASTER
OUR SECOND PANEL WILL LOOK MORE
BROADLY AT STATE POLICY THAT
GOVERNS HOMEOWNERS INSURANCE
AND WHETHER THERE ARE CHANGES
THAT WE SHOULD BE MAKING
TO IMPROVE THE OUTCOMES FOR
CONSUMERS AFTER OUR TWO PANELS
WILL HAVE TIME FOR MEMBERS
OF THE PUBLIC TO SHARE THEIR
THOUGHTS ON THESE ISSUES FOR
THOSE OF YOU HERE IN THE ROOM
THERE IS AN AGENDA AND A GREAT
STAFF ANALYSIS THAT'S BEEN DONE
ON THIS ISSUE THAT'S AVAILABLE
AS YOU COME AND AGAIN THANK
YOU TO THE STAFF FOR ALL THEIR
GOOD WORK IN PREPARING THAT
OVERVIEW OF THE UP THE ISSUE SO
I AM PLEASED TO JOIN MY COACH
HERE ASSEMBLYMAN DAILY I LIKE
TO OFFER HIM THE OPPORTUNITY
TO MAKE SOME OPENING REMARKS
I'D LIKE TO EXTEND THAT SAME
OFFER TO A SENATOR DODD AND
ASSEMBLY WOMAN AGUIAR-CURRY
AND OTHER MEMBERS OF THE FAMILY
WOULD LIKE TO SAY SOMETHING
BEFORE WE BEGIN CHAIRMAN DALY
THANK YOU SENATOR -- AND I'VE
ONE OF ALSO FRANK -- ASSEMBLY
WOMAN THANK YOU ARE CURRY WERE
IN HER DISTRICT SENATOR DODD'S
DISTRICT AS WELL AND -- THIS IS
AN IMPORTANT OPPORTUNITY FOR US
TO LISTEN AND LEARN ABOUT THE
EFFORTS TO REBUILD IN THE WAKE
OF THE FIRES AND THE INSURANCE
ISSUES THAT ARE RELATED TO
THIS VERY VERY UNFORTUNATE LAST
YEAR THAT WE'VE HAD ESPECIALLY
HERE IN NORTHERN CALIFORNIA I
LOOK FOR TO HEARING FROM THOSE
IMPACTED BY THE WILDFIRES IN
FROM THOSE WHO WERE IN CHARGE
OF THE REBUILDING EFFORTS I
HOPE TO HEAR TODAY WHAT IS
WORKING AND WHAT ISN'T WORKING
IN OUR COMPETITIVE EVER
CHANGING INSURANCE MARKET PLACE
BY LISTENING AND LEARNING TODAY
A WHOLE THE TAKE AWAY FOR ALL
OF US IS BETTER UNDERSTANDING
AND FOCUS ON ON ANY PROBLEMS
THAT CAN BE FIXED I WANT TO
PROVIDE AN OPPORTUNITY FOR MY
COLLEAGUES TO SAY A FEW WORDS
HERE BEFORE WE WE GET INTO
THE -- EXPERT PANELISTS --
MISSES A QUARTER CURRY WITH
GOOD MORNING THANK YOU VERY
MUCH FOR COMING TO OUR DISTRICT
-- -- IT'S A SHAME THAT WERE
COMING TO HAVE THIS DISCUSSION
AS I DROVE OVER HERE THIS
MORNING -- I REALIZE THAT
THERE WAS RED FLAG ALERTS
AGAIN IN THE WIND'S BLOWING
AND MY HEART SINKS SO I LOOK
FORWARD TO THE DISCUSSION
TODAY BECAUSE WE DO HAVE TO
FIGURE OUT WHAT WE CAN DO HOW
WE CAN MAKE -- WILL REBUILD
OUR COMMUNITIES AND BRING OUR
FAMILIES BACK TO HOLD SIR THANK
YOU VERY MUCH FOR PUTTING THIS
ON THE DAY THEY PRECIADO A
COULD AND -- IMAGINE SENATOR
DODD WOULD LIKE OUT OF THE
FIRST FOUR LIKE TO THANK THE
SENATE AND ASSEMBLY INSURANCE
COMMITTEES AND STAFF FOR --
THINKING -- THIS BEING AN
IMPORTANT ENOUGH ISSUE TO
COME TO TO NAPA HERE -- I'M
GLAD THAT YOU RECOGNIZE THESE
IMPORTANT ISSUES I LOOK FORWARD
TO WORKING WITH YOU IN THE
UPCOMING YEARS I'D ALSO LIKE
TO THANK -- THE OTHER MEMBERS
AND WITNESSES IN THE PUBLIC FOR
FOR BEING HERE TODAY AS WE ALL
KNOW THESE WILDFIRES RAVAGED
-- ARE DISTRICTS -- SINCE THAT
TIME I'VE HEARD FROM COUNTLESS
CONSTITUENTS ABOUT THEIR
EXPERIENCES AFTER THE FIRE IT
IS ABSOLUTELY CLEAR THAT MANY
ISSUES RELATING TO HOMEOWNERS
INSURANCE IN THE REBUILDING
PROCESS REMAIN I AUTHORED
LEGISLATION TO ADDRESS SOME
OF THESE ISSUES BUT THEY'RE
STILL MORE WORK THAT WE CAN
DO IT STILL MORE WE MUST DO TO
PROTECT CALIFORNIANS I'M HOPING
THAT THIS HEARING WILL PROVIDE
US WITH VALUABLE INFORMATION
TO GUIDE OUR LEGISLATION IN
THE UPCOMING YEARS TO HELP
PREVIOUS AND FUTURE VICTIMS
OF NATURAL DISASTERS SO
WITH THAT I APPRECIATE THE
-- THE OPPORTUNITY AGAIN
TO BE HERE AND -- JUST LOOK
FOR TO LISTEN TO THAT THE
IMPORTANT -- TESTIMONY FOR
-- FROM VICTIMS AND ALSO
FROM EXPERTS IN THE INDUSTRY
WITH ANY OF THE OF OUR
COLLEAGUES LIKE TO SAY
ANYTHING BEFORE WE GET UNDER
WAY ASSEMBLY MEMBER SENATORS
MISTER MOORE LOCK THANK YOU
MISTER CHAIR -- YOU AND I
BOTH COME FROM ORANGE COUNTY
SO IT'S READY TO MENTION WE
WILL CALL THIS SET TODAY'S
WEATHER A SANTA ANA CONDITIONS
AND ANA WINDS WHEN THEY COME
UP FROM INLAND AND GO TOWARDS
THE COAST AS OPPOSED TO THE
PREVAILING TRADE WINDS AND
IN NINETEEN NINETY THREE
ASSUMING DAILY AND I
EXPERIENCED -- A FIRE IN LAGUNA
BEACH THAT -- DESTROYED FOUR
HUNDRED AND FORTY ONE HOMES
IT WAS ABOUT THIS TIME IN
THE IN THE FALL SO THIS IS AN
IMPORTANT ISSUE I JUST KIND
OF DID SOME RIVER VIEW BECAUSE
THE GOING TO BEACH IS ON MY
DISTRICT AND THAT THE FIRE WAS
IN NINETEEN NINETY THREE AND OF
THOSE HOMES TWO HUNDRED EIGHTY
SIX WITHIN THE CITY LIMITS
AND IN AND NINE IN NINETEEN
NINETY SIX THREE YEARS LATER
THE LA TIMES DID AN ARTICLE
SAID GO WHAT'S THE STATUS IN
ONLY A HUNDRED AND FORTY HOMES
HAD BEEN REBUILT THREE YEARS
LATER OUT OF THE TWO HUNDRED
EIGHTY SIX SO I'M SITTING HERE
GOING I SHOULDN'T EXPECT AN
IMMEDIATE BUILDING OF HOMES
YOU KNOW BUT THERE IS A PROCESS
AND SOME MISTER CHAIR -- WE'VE
WE'VE WE'VE WE'VE GOT PRIOR
HISTORY AND IT WOULD BE NICE
TO SEE HOW WE ARE IMPROVING
FROM A GOOD TWENTY FIVE YEARS
AGO -- TO SEE WHAT WE CAN DO
NOW -- TO FIND A MODEL OF HOW
WE ALL WORK WITH GOVERNMENT
INDUSTRY AND THE HOMEOWNERS
TO TRY TO BE AS EFFICIENT AT
LEAST HAVE SOME BENCHMARKS OF
WHERE PROGRESS SHOULD BE AT
AT WHAT TIME AND AND HOW WE'RE
IMPROVING WHATEVER BOMBS ARE
IN THE WAY BUT IT IS A TIME
CONSUMING PROCESS AND DO WE WE
EXPERIENCE THAT THAT'S WHY I'M
HERE AND I WANT TO THANK YOU
FOR THE OPPORTUNITY ALRIGHT
SENATOR GLAZERS ARE YOU READY
TO YEAH YOU KNOW WHETHER I
THINK OPENING REMARKS AT LET'S
START WITH PANEL NUMBER ONE
I'D LIKE TO INVITE AT JIM
LARSEN KEITH WOODS AND CHRIS
ROGERS AND LET ME EXPLAIN WHO
THEY ARE AND THEIR EXPERTISE
THAT THEY BRING TO THE TO US
THIS MORNING MISTER LARSON IS
A EXECUTIVE GENERAL ADJUSTER
FOR THE GREENSPAN COMPANY AND
ADJUSTERS INTERNATIONAL I IS
AN ATTORNEY IN LICENSE PUBLIC
ADJUSTER IN SEVEN STATES AS A
PUBLIC ADJUSTER HE REPRESENTS
CONSUMERS WHEN NEGOTIATING A
CLAIM SETTLEMENT AND CAN SPEAK
TO THE CHALLENGES CONSUMERS
OF HAD -- AND SETTLING THEIR
CLAIMS -- THE SECOND WITH THIS
IS KEITH WOULD SAY HE'S CHIEF
EXECUTIVE OFFICER OF NORTH
COAST BUILDERS EXCHANGE MISTER
WOULD HEADS IN ASSOCIATION
OF CONTRACTORS ARCHITECTS
ENGINEERS BUILDING SUPPLY
MEMBERS THAT SPANNED CINEMA
LAKE MENDOCINO AND NAPA
COUNTIES AND CHRIS ROGERS
-- WHO IS THE VICE MAYOR AND
COUNCIL MEMBER FROM THE CITY
OF SANTA ROSA THANK YOU FOR
BEING HERE CHRIS YEAH HE SERVES
ON THE REBUILDING COMMITTEE
FOR THE CITY AND THE JOINT
REBUILDING COMMITTEE WITH
CINEMA COUNTY HAS BEEN CLOSELY
INVOLVED IN SANTA ROSA THIS
RECOVERY EFFORTS SO WITH THAT
WILL BEGIN WITH THAT MISTER
LARSON THANK YOU FOR BEING HERE
GOOD MORNING THANK YOU FOR
INVITING ME CENTERS -- I'VE
BEEN ASKED TODAY TO TALK
ABOUT SOME OF THE ISSUES THAT
THE A JUST ARE THE POLICY
HOLDERS HAVE BEEN FACING
THROUGH THE ADJUSTMENT CLAIMS
-- FOR THE SANTA ROSA FIRES
I MEAN IT HAD SOME A JUST
THREE HIGHLIGHTS ONE OF THE
THINGS SO FIRST AND FOREMOST
WHAT IS A PUBLIC ADJUSTER
DO WE REPRESENT THE INSURED
THROUGH THE CLIENT CLAIMS
PROCESS -- WE NEGOTIATE WE
INTERPRET INSURANCE CONTRACT
LANGUAGE AND WE NEGOTIATED
FARES SOLOMON FOR THE INSURED
SOME OF THE THINGS THAT I'VE
SEEN THROUGH THE REPRESENT
REPRESENTATION OF SOME OF THE
FOLKS HERE IN SANTA ROSA --
THE ISSUES THAT THEY FACE IN
THE ADJUSTMENT PROCESS IS ONE
OF THE ELONGATING THE PROCESS
SO IF YOU WANT TO LOOK AT THE
UMBRELLA OF ISSUE THAT I'M
FACED WITH ONE REPRESENTING
CLIENTS IS IT'S TAKING A LONG
TIME TO JUST THESE CLAIMS AND
WHAT I'M SEEING ACROSS THE
BOARD IS FOR MOST INSURERS IS
A LOT OF TURNOVER OF ADJUSTERS
SO WHAT IS THAT MEANS WE'LL
START OUT AT THE BEGINNING
OF THE FIRE AND WILL HAVE ONE
ADJUSTER TWO MONTHS LATER A
NEW ADJUSTER IS ASSIGNED --
A WEEK LATER A NEW ADJUSTER
DESIGN I'VE HAD SOME CLAIMS
WHERE WE'VE HAD TAN ADJUSTERS
IN THE LAST TWELVE MONTHS WHY
IS THAT ALONG EIGHT THE PROCESS
EVERY TIME YOU GET ANYWAYS
OSTER YOU GOT TO RE EDUCATE
THE ADJUSTER ON WHAT'S GOING ON
WITH THE FILE AND TIME IS LOST
-- THEY HAVE TO GET UP TO SPEED
THEY HAVE TO GET -- THEY HAVE
TO TALK TO THEIR SUPERVISORS
THEY HAVE TO UNDERSTAND WHAT'S
GOING ON WITH THE FILE AND
FRANKLY IT'S TO THE DETRIMENT
OF THE INSURED SAID I WOULD
SAY THAT'S THE NUMBER ONE ISSUE
THAT MY CLIENTS ARE FACING
THE NUMBER TWO ISSUE THAT
I'VE I'VE COME ACROSS IS
OFTENTIMES ALL COME IN AFTER
THE CLAIM IS A FEW WEEKS OLD
AND THE KERRIER HIS STEP DÂN
AND AND STARTED WORKING WITH
THE INSURED -- WHEN I STEP
AND I GO THROUGH THE POLICY
AND I ADVISE THE INSURED OF
ALL THEIR CONTRACTUAL RIGHTS
OFTENTIMES THE INSURED IS
JUST FINDING OUT ABOUT WHAT
THEIR RIGHTS ARE -- I THINK
THE INSURANCE -- INDUSTRY CAN
DO A BETTER JOB OF ADVISING
THEIR INSUREDS UP FRONT AS
TO WHAT THE CONTRACT PROVIDES
IN TERMS OF -- COVERAGES AND
WHAT ARE THE INSURANCE RIGHTS
-- THAT'S SO THAT'S A NUMBER
TWO THING NUMBER THREE THING
IS EVALUATION SO WHEN THE
INSURANCE COMPANIES CON MAN
OFTENTIMES THEY HIRE FOLKS
FROM OUT OF STATE AND THERE'S
AN INDUSTRY WIDE PROGRAM
THAT IS USED TO VALUE -- THE
REPLACEMENT OR REPAIR OF THE
HOUSE IT'S CALLED EXACT MADE
AND THAT PROGRAM IS MERELY A
TOOL YOU CAN HIRE EXACT INMATE
TO REBUILD YOUR HOUSE -- YOU
HAVE TO HIRE A CONTRACTOR
AND THE CONTRACTOR IS GONNA
TELL YOU WHAT THE MARKET
VALUE IN THE MARKET PRICES
FOR THE REBUILD YOUR HOME
THESE THE THE TWO OF WILL
VALUATIONS THE EXACT TO MADE
AND THEN THE MARKET ARE IN
OFTENTIMES CONGRUENT WITH EACH
OTHER SO YOU'VE GOT ON ONE
HAND YOU'VE GOT THE INSURANCE
AND JUST INDUSTRY USING A TOOL
-- AND THAT TOOL IS THEN USED
TO SETTLE THE CLAIM BUT IT'S
NOT IT'S NOT REALITY YOU CAN'T
USE OFTENTIMES THE MONIES
THAT EXACT INMATE IS COMING UP
WITH FOR THE REBUILD THE HOME
ARE NOT SUFFICIENT FOR MARKET
CONDITIONS EITHER LABORS TO
ALLOW OR OR -- OR MATERIALS ARE
TO LOWER OR BOTH SO -- THOSE
THE THREE HIGHLIGHTING ISSUES
ITS VALUATION TURN OVER AND THE
INSURED'S REALLY UNDERSTANDING
THE CONTRACTUAL RIGHTS -- THOSE
THE THREE THINGS AND I'VE I'VE
FOUND THAT THE KIND OF ELONGATE
THE PROCESS THE VALUATION IS
ME I'M STILL NEGOTIATING TWELVE
MONTHS OUT FROM THE FIRE WITH
INSURANCE COMPANIES ON THE TRUE
REPAIR VALUE OR REPLACEMENT
VALUE OF THEIR HOME SO IMAGINE
IF YOU'RE TRYING TO REBUILD
YOUR HOME AND YOU'RE TRYING TO
PLAN FOR THE FUTURE YOU DON'T
REALLY HAVE YOU DON'T KNOW
YOUR BUDGET FOR THE REBUILD
SO YOU CAN'T REALLY START THE
PROCESS OF HIRING A CONTRACTOR
AND HIRING YOUR ENGINEERS AND
ARCHITECTS UNTIL YOU'VE SETTLED
ON THAT NUMBER SO THAT'S GOOD
ALONG A THE PROCESS THANK YOU
MISTER LARSON FOR YOUR INSIGHT
AND I KNOW THERE'S GONNA BE
SOME QUESTIONS BUT I WANT TO
GO TO THE PANEL FIRST AND THEN
WE'LL COME BACK AND ALLOW --
QUESTIONS FROM MY COLLEAGUES
MISTER WOODS THANK YOU FOR
BEING HERE -- CHIEF EXECUTIVE
OFFICER OF THE NORTH COAST
BUILDERS EXCHANGE WE APPRECIATE
YOUR WISDOM AND INSIGHT THANK
YOU AND -- -- THANK YOU FOR THE
INVITATION TO BID INTIMIDATING
BECAUSE JUST THAT THIS PANEL
SO DISTINGUISHED WHEN I LOOK
AT THE LIST OF PANELISTS I'M
THE ONLY ONE I'VE NEVER HEARD
OF AN ILLICIT THIS EXTREMELY
INTIMIDATING GOOD TO SEE MY
FRIEND SENATOR DODD THANK YOU
FOR ALL YOUR WORK -- LET ME
EXPLAIN NORTH COAST BUILDERS
EXCHANGE -- WHAT PERSPECTIVE
I WANT TO BRING WE HAVE
ROUGHLY TWELVE HUNDRED AND
FIFTY MEMBERS RELATED TO THE
CONSTRUCTION INDUSTRY WHERE
-- WE REPRESENT THE CINNAMON
APPLE LAKE IN MENDOCINO COUNTY
-- SO WE'RE WE'VE BEEN IN THE
MIDDLE OF ALL OF THE REBUILD
EFFORTS FOR THE PAST YEAR --
EIGHT HUNDRED AND FIFTY OF OUR
MEMBERS ARE LICENSE CONTRACTORS
HALF FOR GENERAL CONTRACTORS
HAVE FOR SUBCONTRACTORS AND
I'VE BEEN IN TOUCH WITH THEM
OVER THE PAST YEAR TO TRY
AND GET A REAL FEEL FOR HOW
OUR ORGANIZATION CAN HELP AND
WHAT THE ISSUES ARE I'M I'M
I'M NO EXPERT ON INSURANCE
TO LEAVE THAT TO THE SECOND
PANEL BUT I CAN BRING YOU A
BUILDER'S PERSPECTIVE WHAT'S
ACTUALLY HAPPENING LITERALLY
ON THE GROUND OUT THERE AND
THE DIFFICULTIES THERE FACING
THAT I THINK HAS A REAL IMPACT
ON YOUR A TOPIC TODAY I DO
WANT TO ADD IF YOU READ THIS
YOU'LL KNOW EVERYTHING ALMOST
THAT YOU NEED TO KNOW THIS
INCREDIBLE DOCUMENT -- ON THE
INFORMATIONAL HEARING DOCUMENT
EVERYTHING IN HERE SO IN MY
VIEW A HUNDRED PERCENT CORRECT
OF A AN ACCURATE IN DEPICTING
WHAT'S ACTUALLY HAPPENING
OUT THERE ON THE GROUND --
THE STAFF IS SUGGESTED SOME
SUGGESTED TOPIC TO LIMIT MY
COMMENTS TO THAT I WILL NOTE
THAT THE OTHER TWO THEMES
GOING ON IN CINEMA COUNTY WHERE
WE'RE HEADQUARTERED ONE IS THE
FORMAL A THEME WE'VE ADOPTED
OF US ENORMOUS STRONG LET ME
EXPLAIN TO YOU THAT I BELIEVE
FOR THE PAST YEAR THERE'S A
SECOND THEME THAT EXPLAINS IT
ALL IT SO NORMA ON CERTAIN WE
HAVE FIRE VICTIMS WHO STILL IN
GREAT NUMBERS DO NOT KNOW WHAT
THEY'RE GOING TO DO WHETHER
THEY CAN AFFORD TO REBUILD
OR EVEN WANT TO REBUILD THE
OF FOR A NUMBER OF REASONS I
MIGHT ALSO NOTE ON THE AGENDA
IS THE ONLY OTHER THING I
MIGHT CORRECT THE THE TITLE
OF OUR SESSIONS NOT CORRECT
BUT SUPPLEMENT IS REBUILDING
AFTER THE FIRE WILL LET ME
TELL YOU WHAT'S REALLY GOING
ON OUT THERE IS IT'S BUILDING
AFTER THE FIRE NOT NECESSARILY
REBUILDING I'VE TALKED A
HUNDRED TO CONTRACTORS --
BUILDING OFFICIALS THROUGHOUT
THE AREA AND LESS THAN FIVE
PERCENT OF PEOPLE WHO LOST A
HOME I REPEAT LESS THAN FIVE
PERCENT OF THOSE PEOPLE ARE
GOING TO ACTUALLY REBUILD THE
HOME THAT THEY LOST AND IT'S
FOR A VARIETY OF REASONS OLDER
FOLKS DON'T WANT TO STORY HOMES
ANYMORE THEY WANT ONE STORY
HOMES -- THERE OF AS AS THEY
SETTLE UP ON INSURANCE ARE
FINDING OUT THERE FOUR THOUSAND
SQUARE FOOT HOME WAS INSURED
FOR WHAT WILL REBUILD AT TWENTY
FIVE HUNDRED TO TWENTY EIGHT
HUNDRED SQUARE FOOT HOME THERE
ARE OTHERS WHO ARE GOING TO
RETIRE ANYWAY WANTED TO MOVE
AWAY WHATEVER AND A WHOLE LOT
OF PEOPLE ARE REBUILDING A HOME
THAT'S DIFFERENT TO WHAT THEY
HAD BECAUSE THEY ALWAYS WANTED
THE UPGRADE AN UPDATE THAT
HOME SO IT'S A COMBINATION OF
REBUILDING AND BUILDING THAT'S
GOING ON TOPICS QUICKLY THAT
WAS ASKED TO ADDRESS WHAT'S
THE BEST PRACTICE TO ESTABLISH
REPLACEMENT COSTS OUT WELL IN
IN YOUR REPORT HERE REFERS TO
US NORMAL ACOSTA WELL THERE'S
NOTHING NORMAL ABOUT WHAT WE
EXPERIENCE THE MAGNITUDE OF
THE NORTH BAY FIRES AS I REFER
TO THEM OF THE MAGNITUDE HAS
THROWN EVERYTHING -- INTO
FLOCKS AND THAT'S WHAT WE'RE
DEALING WITH ON THE INSURANCE
SIDE BUT ALSO ON THE CONTRACTOR
SIDE WHAT I I MET WITH A BUNCH
CONTRACTORS A NUMBER OF THEM
IN ANTICIPATION OF THIS TO TRY
AND GIVE US A FLAVOR OF WHAT
THEY'RE EXPERIENCING ONE ASKED
THIS IS WITH THEM THIS QUESTION
ABOUT ESTABLISHING REPLACEMENT
COST THEY SAID THE THE THEY
SAID THE ONUS IS REALLY BACK
ON THE HOMEOWNER THAT THE THE
CONSTRUCTION INDUSTRY MAY HAVE
FAILED LOCALLY TO EXPLAIN THE
PROCESS BUT IT REALLY GETS
BACK TO THE FIRE VICTIM TO DO
THEIR HOMEWORK WITH ALL OF THE
RESOURCES AVAILABLE AND TAKE
ADVANTAGE OF THEM WHAT OTHER
CONTRACTORS SAID IS IF YOU HAVE
A HOME THAT YOU LOST GO FIND
A HOME THAT'S BEING REBUILT
SOMEONE IN YOUR SIZE IN YOUR
NEIGHBORHOOD AND FIND OUT WHAT
THOSE BUILDING COSTS ARE FROM
THE CONTRACTORS DOING THE WORK
IT'S ROUGHLY IN COFFEE PARK
WHICH LOS THIRTEEN HUNDRED
HOMES CHRIS -- TWO HUNDRED AND
FORTY TO TWO HUNDRED NINETY
DOLLARS IS THE REBUILDING PER
SQUARE FOOT COSTS THAT MOST OF
THE BUILDERS ARE EXPERIENCING
UP AND FOUND A GROVE IT RANGES
FROM THREE TWENTY FIVE TO FIVE
HUNDRED ON THE LOW SIDE PER
SQUARE FOOT AND SIX TO EIGHT
HUNDRED DOLLARS OR MORE ON --
ON THE HIGH SIDE THE MAJORITY
OF UNDER INSURED SIR TRYING TO
BUILD A CUSTOM HOME AND THAT
THAT'S PART OF THE DIFFICULTY
IT SO MUCH EASIER DOWN THE
COFFEE PARK WITH FLAT LOTS THEN
THE THEN THE HILLSIDE LOTS WHAT
I WAS TOLD BY THE BUILDERS IS
THE HILLSIDE LOTS IN THE COST
OF BUILDING THAT GOES INTO THAT
CAN ADD ANYWHERE FROM FIFTY
TO A HUNDRED THOUSAND DOLLARS
TO THE COST OF REBUILDING AS
OPPOSED TO DOWN IN A FLAT LOT
OF PRODUCTION HOMES OR WHAT'S
GOING ON IN THE COFFEE PARK
AREA WITH THE THIRTEEN HUNDRED
HOMES VERY FEW PEOPLE AS I
SAID A REBUILDING THE HOME THEY
LOST IT IS FAR MORE EFFICIENT
EFFECTIVE AND THEY CAN GET A
GUARANTEED PRICE PER SQUARE
FOOT BY HAVING A BUILDER COME
IN AND SAY I'VE GOT TWELVE
MODELS YOU PICK ONE WILL HANDLE
ALL OF CONSTRUCTION IN THE
FINISHING NO CHANGE ORDERS
AND NEXT TIME WE SEE YOU WILL
HAND YOU YOUR KEYS TO THE
HOUSE BECAUSE THAT'S THE ONLY
WAY A CONTRACTOR A CAN GIVE
A GUARANTEED PRICE IF THEY IF
THEY DON'T HAVE TO GET INTO A
HOMEOWNER SAYING IN THE MIDDLE
OF A PROJECT YOU KNOW ON MY
BROTHER IN LAW BILLS KITCHEN
CABINETS HOW ABOUT HOW ABOUT
IF YOU USE HIM THAT DOESN'T
WORK I I'D ADD THE PRICE
DIFFERENCES THAT I WAS ASKED
ABOUT IN AREAS AFFECTED BY THE
FIRE -- BOYS I JUST NOTED IT
SO THE HILLSIDE HOMES IT WILL
TAKE MUCH LONGER TO REBUILD
AND HAVE LESS OF A REBUILD IN
-- PERCENTAGE WISE THAN SAY A
COFFEE PARK OR A LARGE FIELD
THAT -- PRIMARY DRIVER IS THE
PROPERTY AND -- WHETHER IT'S
FLAT OR HILL SIDE FINALLY I WAS
ASKED ABOUT THE -- PRICES SO
TO BUILD IN SEPTEMBER TWENTY
SEVENTEEN AND THEN IN OCTOBER
NOVEMBER OF TWENTY SEVENTEEN
PRE FIRE AND POST FIRE I WAS
SURPRISED WHEN THE DOZENS OF
CONTRACTORS THAT I TALKED TO
SAID THERE'S REALLY NOT THAT
MUCH DIFFERENCE BUT I I MEAN
BUILDING COSTS THEMSELVES -- ON
IN SEPTEMBER FIRST TO OCTOBER
-- THERE REALLY FAIRLY SIMILAR
IF YOU PRICE THE HOME THE
BIGGEST CONSIDERATION AND THE
PROBLEM WE'RE FACING IS LABOR
COSTS YOU CAN AUTOMATICALLY
ADD THEY SAID ANYWHERE FROM
TWENTY TO TWENTY FIVE PERCENT
OF THE COST OF BUILDING FREE
FIRE VERSES BUILDING POST
FIRE AND THAT'S BECAUSE OF THE
MAGNITUDE OF THE DISASTER HAS
LED TO COMPETITION FOR LABOR
LIKE WE'VE NEVER EXPERIENCED
BEFORE AND SO IS THAT'S THE
THAT MATERIALS A GO UP AND
DOWN A LITTLE BIT ARCHITECTURAL
CHANGES LEAD TO HIGHER PRICES
AND I WILL CLOSE BY SAYING
WITH THE THE STATE HAS DONE A
WONDERFUL JOB OVER THE YEARS
AND CODE CHANGES FOR SAFETY
GREEN BUILDING AT CETERA BUT
IT'S ALSO COME WITH A PRICE TAG
ONE HOME BUILDER THAT BUILT A
HOME IN COFFEE PARK IN NINETEEN
EIGHTY SIX ADDED UP ALL IT TOOK
THOSE PLANS AND WHAT IT WOULD
COST TO BRING THOSE PLANS UP
TO CODE TODAY AND IT ADDED JUST
OVER A HUNDRED AND TWO THOUSAND
DOLLARS SO I APPRECIATE THE
CODE CHANGES AND THE INTENTION
OF THEM -- BUT IT DOES COME
WITH A PRICE TAG AND HOMEOWNERS
GETTING STICKER SHOCK AT WHAT
IT COSTS TO BRING A HOME UP
TO CODE WHICH IS WHY THEY'RE
CHOOSING NOT TO REBUILD THANK
YOU AGAIN FOR INVITING ME ALL
WELCOME QUESTIONS THANK YOU
MISTER WOODS THAT FOR YOUR
TESTIMONY AND YOUR INSIGHT AND
I'M SURE THERE WILL BE SOME
QUESTIONS IN JUST A MOMENT
I'D LIKE TO INVITE OUR THIRD
PANELIST TO SHARE HIS WISDOM
CHRIS ROGERS THE VICE MAYOR
AND COUNCILMEMBER FROM THE CITY
OF SANTA ROSA MISTER ROGERS
THANK YOU FOR BEING HERE TODAY
THANK YOU SO MUCH MISTER CHAIR
-- I'VE ONE ECHO A LOT OF THE
COMMENTS THAT MY COLLEAGUE JUST
MADE WE'RE REALLY EXPERIENCING
THIS DISASTER AS A COMMUNITY
IN TRYING TO FIGURE OUT HOW TO
GET THROUGH IT AS A COMMUNITY
I KNOW YOU'LL HEAR A LITTLE
BIT LATER FROM -- UNITED POLICY
HOLDERS A SURVEY WAS DONE
TWO THIRDS OF SANTA ROSEN'S
THAT LOST THEIR HOME OR UNDER
INSURED BY MORE THAN THREE
HUNDRED THOUSAND DOLLARS AND
IF YOU LOOK IN YOUR PACKET
OVER HALF OF MY CONSTITUENTS
HAVE NOT HAD A CHANCE TO FIND
A NUMBER THAT WORKS WITH THEM
AND WITH THEIR INSURANCE TO
ACTUALLY START REBUILDING THEIR
HOME SO WHEN WE TALK ABOUT
THE NUMBERS OF WHY WE HAVEN'T
REBUILT MORE IN OUR COMMUNITY
FOR ACTUALLY VERY PROUD THAT WE
HAVE OVER A THOUSAND HOMES AND
SANTA ROSA UNDER CONSTRUCTION
ABOUT A THIRD OF WHAT WAS LOST
THAT'S REALLY FAST WHEN YOU
CONSIDER HOW EXTENSIVE THE
DEBRIS CLEANUP WAS AND SOME
OF THE OTHER CHALLENGES THAT
WE'VE MET BUT WHERE PEOPLE ARE
REALLY HAVING A HARD TIME IS IN
GETTING THAT NUMBER FROM THEIR
INSURANCE AND I AM HEARING
OVER AND OVER AGAIN FROM MY
CONSTITUENTS IN FOUNTAIN GROW
THAT THEY ARE BEING PRESSURED
TO SIGN ON THE DOTTED LINE ON
AN AGREEMENT BEFORE THEY'VE
BEEN ABLE TO EVEN FIND A
CONTRACTOR TO GIVE THEM A BIT
FOR REBUILDING THEIR HOME A LOT
OF THAT IS AROUND THE EIGHTEEN
MONTH EXT MARK THAT THEY HAVE
FOR TEMPORARY ASSISTANCE AND
THAT IS IF I HAD TO CHOOSE ONE
THING FOR YOU TO TAKE A LOOK
AT IT BE AN EXTENSION OF THAT
EIGHTEEN MONTHS AS HAS BEEN
SAID WE ARE IN A NEW NORMAL
WHERE THE DEVASTATION IS A
LOT MORE EXPENSIVE THAN THAT
PASSED FIRES WHEN YOU HAVE A
FIRE LIKE THIS YOU CREATE ITS
OWN ECONOMIC CLIMATE AND THE
RESPONSE IS NOT GOING TO BE
THE SAME SO NOT ONLY WAS THE
DEBRIS CLEANUP LONGER THAN IT
SHOULD HAVE BEEN BUT WE'VE ALSO
NOTICED DIFFERENT QUIRKS IF
YOU WILL -- THAT HAVE COME UP
FROM THIS WE HAD A WATER SYSTEM
UP IN FOUNTAIN GROVE THAT
LITERALLY MELTED AND CREATED A
BENZENE ISSUE IN THE SOIL THAT
PREVENTED PEOPLE FROM BEING
ABLE TO MOVE FORWARD WITH THEIR
REBUILD UP UNTIL WE CLEARED
THIS THIS ACTUALLY BEGINNING OF
THE MONTH SO TOOK US A YEAR TO
CLEAR THE SOIL OF THE BENZENE
TO MAKE SURE THAT IT WAS SAFE
FOR PEOPLE TO REBUILD SO THOSE
FOLKS WHO HAVE BEEN LIVING IN
TEMPORARY HOUSING ONLY HAVE
SIX MONTHS LEFT AT THIS POINT
OF THAT TEMPORARY ASSISTANCE
BEFORE THEIR EXPECTED TO BE
BACK IN THEIR HOME THAT'S
NOT GOING TO HAPPEN WE HAD
JOURNEYS AND A MOBILE HOME
PARK WHERE FORTY FOUR OF THE
UNITS WERE NOT DESTROYED WERE
LARGELY NOT DAMAGED BY THE
FIRE BUT THE WATER SYSTEM WAS
DESTROYED IN CONTAMINATED THE
JOURNEY'S END WHICH MEANS THAT
THOSE FORTY FOUR HOMES CANNOT
RE OCCUPY THEIR HOME AND THEY
ALSO CANNOT BE PAID OUT BY
THEIR INSURANCE BECAUSE THEY
HAVEN'T BEEN CONDEMNED THEY'RE
SITTING IN LIMBO THIS EIGHTEEN
MONTHS REALLY IS NOT ENOUGH IN
ORDER FOR MY CONSTITUENTS TO
BEGIN THE RECOVERY PROCESS EVEN
MOVING AS QUICKLY AS WE'VE BEEN
MOVING AND I WILL TELL YOU --
CITY SANTA ROSA A LOT OF OUR
JOB IS BEEN TO REMOVE BARRIERS
TO HAVE PEOPLE MOVE FORWARD
ONCE THEY HAVE THEIR PLANS IS
SUBMITTED TO THE CITY IT TAKES
FIVE TO SEVEN DAYS TO THE PLAN
CHECK THE DELAY IS LARGELY NOT
ON GOVERNMENT BUREAUCRACY WHICH
I THINK MOST PEOPLE ARE PRETTY
SURPRISED TO HEAR IT'S ACTUALLY
ON THE INSURANCE COMPANIES AND
TRYING TO GET THESE ELEMENTS
DONE -- IN A IN A AS I SAID
IN A LOT OF WAYS THIS EIGHTEEN
MONTH METRIC IS BEING USED TO
TRY TO LEVERAGE SETTLEMENTS
FASTER FROM MY CONSTITUENTS
MANY OF WHOM ARE REPORTING
THAT THEY'RE GETTING LOW
BALLED AND THEY FEEL LIKE THEY
HAVE NO OPTIONS BUT TO SIGN
ONE THING I WOULD ASK THIS
COMMITTEE TO DO IS TO REVISIT
SOME OF THE INSURANCE BILLS
THAT WERE INTRODUCED IN THIS
COMMITTEE IN TWENTY SEVENTEEN
-- SENATOR DODD ASSEMBLY WOMAN
AGUIAR-CURRY SENATOR MCGUIRE
ASSEMBLY MEMBER WOULD THEY ALL
BROUGHT FORTH REALLY THOUGHTFUL
LEGISLATION THAT WOULD HELP MY
CONSTITUENTS AS I SAID EVERY
ADDITIONAL DELAY OR EVERY
ADDITIONAL COST MAKES IT MORE
LIKELY THAT SANTA ROSEN'S DON'T
REBUILD THEIR HOME ONE BILL IN
PARTICULAR FROM SENATOR MCGUIRE
WOULD HAVE ALLOWED PEOPLE TO
BE PAID OUT FOR THEIR ITEMS IN
THEIR HOME THAT WERE DESTROYED
WITHOUT HAVING TO GO THROUGH
THE PROCESS OF ITEMIZING
EVERY SINGLE ISSUE THAT IS A
SIGNIFICANT SIGNIFICANT AND
RE TRAUMATIC EXPERIENCE FOR MY
CONSTITUENTS AND WHEN WE TALK
ABOUT THE AGGREGATE OF WHAT
THEY HAVE TO DO GO THROUGH THE
HOOPS THAT THEY HAVE TO JUMP
THROUGH IN ORDER TO REBUILD
THAT'S THE ONE THAT I HEAR MORE
OFTEN THAN NOT WHERE PEOPLE
WANT TO THROW UP THEIR HANDS
AND SAY WHAT WAS THE POINT OF
HAVING INSURANCE I'D WE REALLY
ENCOURAGE YOU TO REVISIT THOSE
BILL THOSE BILLS THE OTHER
THING THAT ENCOURAGE YOU TO
DO IS LOOK AT SOME OF THE ODD
QUIRKS THAT MAKE THEIR WAY
INTO INSURANCE -- POLICIES
MANY FOLKS AND FOUND GROWTH HAD
TOLD ME THAT IN THEIR INSURANCE
PLAN WAS A REQUIREMENT THAT
THEY REBUILD THEIR HOME WITHIN
TEN PERCENT OF ITS ORIGINAL
FOOT PRINT AS MR WOOD SAID
WHEN YOU'RE LOOKING AT SIX
HUNDRED DOLLARS A SQUARE FOOT
OR EIGHT HUNDRED DOLLARS A
SQUARE FOOT TO REBUILD YOUR
HOME SOMETIMES THE ONLY WAY
IT'S GOING TO PENCIL OUT AS
IF YOU BUILD SMALLER AND A LOT
OF THESE POLICIES ARE SAYING
THAT PEOPLE HAVE TO STILL
BE WITHIN TEN PERCENT ON THE
BOTTOM AND I UNDERSTAND THE
INTENT IS THAT THEY WON'T GO
HOG WILD AND BUILD WAY BIGGER
THAN THEY HAD IT'S ACTUALLY
PREVENTING PEOPLE FROM BEING
ABLE TO REBUILD BECAUSE THEY
CAN'T REBUILD SMALLER FINALLY I
WOULD ASK THIS COMMITTEE REALLY
DO A GOOD JOB OF LOOKING AT
THIS FROM A HOLISTIC STANDPOINT
NOT JUST INSURANCE FOR RECOVERY
BUT LOOKING AT THE FEMA PROCESS
AS WELL WHAT FEMALE WILL PAY
FOR VERSES WHAT INSURANCE WILL
PAY FOR WE ARE FINDING WAYS
THAT IS CHALLENGING A GIVE
YOU TWO EXAMPLES OF MANY OF
YOUR COMMUNITIES I'M SURE MADE
THE MOVE YEARS AGO TO REQUIRE
SIDEWALK REPAIRS TO BE DONE
BY HOMEOWNERS IT'S BEEN PRETTY
STANDARD THROUGHOUT THE STATE
NOW THE WAY THAT THIS IS PLAYED
OUT IN IN THAT IN A DISASTER
IS FOR OUR CITY THOSE SIDEWALKS
ARE NOW BEING REPAIRED USING
INSURANCE DOLLARS BECAUSE
FEMALE WILL NOT COVER THEM
BECAUSE FEMA HAS SAID THAT
THIS ACTUALLY ON THE ONUS OF
THE HOMEOWNER SO PARTICULARLY
WHEN IT COMES TO DEBRIS REMOVAL
OR WE HAVE THESE BIG TRACTORS
THAT WERE -- WORKING THEIR WAY
ON OUR STREETS AND ON OUR SIDE
WALKS AND DOING DAMAGE THAT IS
NOT COVERED BY FEMA WHEN YOU
LOOK AT DAMAGED TREES FEMALE
WILL COVER A TREE IF IT IS
FOUR INCHES IN DIAMETER SIX
FEET TALL AND FROM THE GROUND
UP BUT IT WILL NOT COVER THE
ROOTS AND IT WILL NOT COVER
THE STOP THAT WILL FALL ON
INSURANCE FOR THAT WILL FALL
ON THE CITY THERE ARE I'D SAY
RIDICULOUS EXACT DEFINITIONS
THAT ARE HAVING TO BE MET
AND IF THE STATE LAWS AND
IF FEMA OPERATING PROCEDURES
ART COINCIDING WITH ONE
ANOTHER IT LEAVES HOMEOWNERS
IN LIMBO APPLAUSE THERE AND
SEE IF THERE ANY QUESTIONS
THIS ROGERS THANK YOU FOR
YOUR TESTIMONY I CAN FEEL
FROM YOUR VOICE AND YOUR
EMOTIONS THAT YOU'VE BEEN IN
THE MIDDLE OF THIS AND IT'S
BEEN A DIFFICULT TIME FOR
YOU AND YOUR COMMUNITY AND I
HAD CERTAINLY APPRECIATE THE
INSIGHT THAT YOU BROUGHT TO US
TODAY THANK THANK YOU VERY MUCH
I WANT TO INVITE MY COLLEAGUES
ON THE PANEL ASSEMBLY AND
SENATORS STAFF WITH QUESTIONS
FOR THIS PANEL THE PLEASE
-- IN SO INDICATE I'LL START
WITH SENATOR GALGIANI WELCOME
THERE
MY FIRST QUESTION IS FOR
OUR FIRST PANELIST --
YOU MENTIONED THAT HIGH
TURNOVER AND ADJUSTERS WHAT
IS THE RATIONALE FOR THAT
WHAT DO YOU THINK ARE THE
CAUSES THAT HAVE LED TO THAT
STAFFING THEY THEY WEREN'T
PREPARED DAY BEING THE
INSURANCE COMPANIES AND THIS
IS THEIR BUSINESS MODEL THIS
IS HOW THEY TRAVEL AROUND THE
COUNTRY THAT'S HOW THEY STAFF
THESE STORMS THEY DON'T KEEP
THESE PEOPLE IN PLACE FOR VERY
LONG BECAUSE NEXT THING YOU
KNOW THERE'S ANOTHER STORM IN
FLORIDA AND THEY HAVE TO GO
THERE SO THEY'RE CONSTANTLY
BEING TURNED OVER IT'S HARD
IT'S FRANKLY IT'S HARD TO
ESTABLISH RELATIONSHIPS WITH
THESE ADJUSTERS BECAUSE THEY'RE
NOT THERE VERY LONG YOU KNOW
YOU'VE DEVELOPER REPORTER AND
AND YOU MAY GET THIS CLAIM
SETTLED A LITTLE BIT FASTER
BUT AS SOON AS ANOTHER STORM
COMES ALONG THEY'RE GONE SO
IT'S NOT THAT THEY'RE QUITTING
THE COMPANY PER SE BUT THE
COMPANY IS CHOOSING TO MOVE
THEM AROUND BASED ON THE ORDER
OF PRIORITIES AT THE TIME I
WOULD I WOULD AGREE WITH THAT
STATEMENT AND WORK FOR THE
INSURANCE COMPANIES BUT THAT'S
THAT'S THE ONLY CONCLUSION I
CAN REACH I MEAN CERTAINLY ANY
ANY TIME THAT WE'RE DEALING
WITH ANY COMPANY -- BUREAUCRACY
WHEN THERE'S THERE'S NOT AN
UNDERSTANDING OF THE OF THE
BASICS AND SOMEBODY GETS
SHIFTED AND YOU'RE STARTING
THE WHOLE PROCESS ALL OVER
IT'S OBVIOUS THAT THAT'S GOING
TO EXTEND THE TIME FRAME AND
IT'S GOING TO EXACERBATE THE
PROBLEM SO YOU IT SOUNDS LIKE
IT'S A CHOICE AS WITH REGARD
WHAT THE INSURANCE COMPANY
HERE'S ANOTHER THING ANOTHER
ISSUE WITH THAT WE ARE GETTING
ADJUSTERS FROM ALL OVER THE
COUNTRY THEY'RE NOT SAVVY WITH
CALIFORNIA LAW SO THEY MAY
ADJUST THE CLAIM DIFFERENTLY
IN TEXAS IOWA IDAHO BUT WE
HAVE VERY SPECIFIC LAWS HERE
IN CALIFORNIA THAT PROTECT
OUR OUR INSUREDS AND I'LL GIVE
YOU AN EXAMPLE I HAVE A CLIENT
THAT CHOSE TO BUY A NEW HOUSE
YOU CAN READ PLACE OR YOU CAN
REBUILD PER THE CONTRACT NOW
MY CLIENT BOUGHT A HOUSE THAT
WAS FIFTY YEARS OLD HAD BEEN
REMODELED IN FIFTY YEARS THEY
LIVED IN FOUND GROW THEIR HOUSE
WAS TEN YEARS OLD WHEN YOU
REPLACE YOUR HOME CONTRACTUALLY
YOU'RE ALLOWED TO BUY A HOUSE
OF LIKE KIND AND QUALITY IF
THE HOUSE THAT YOU BUY IS FIFTY
YEARS OLD AND YOUR HOUSE THAT
YOU LOST IS TEN YEARS OLD YOU
SHOULD BE ABLE TO RE MODEL
THAT FIFTY YEAR OLD HOME TO
BRING IT TO THE STANDARDS OF
LIKE KIND AND QUALITY THAT
YOU HAD I HAD AN ADJUSTER THAT
WAS WORKING OUT OF ILLINOIS
AND I SAID WELL MY CLIENT HAS
BOUGHT A NEW HOUSE BUT THEY
WANT TO REMODEL IT IT'S NOT
LIKE KIND AND QUALITY AND THE
ANSWER I RECEIVED WAS IF IT
HAS A BATHROOM AND KITCHEN
THEY HAVE TO MOVE AND AND
THAT'S NOT WHAT CALIFORNIA LAW
THAT'S NOT WITH THEIR CONTRACTS
AS BUT HE DOESN'T KNOW THAT
BECAUSE A DOZEN OF CALIFORNIA
LAW BE HE'S NOT FAMILIAR
WITH THE CALIFORNIA POLICY
SO YOU HAVE TO EDUCATE THESE
FOLKS ALONG THE WAY THANK YOU
OTHER QUESTIONS FROM MY
COLLEAGUES SENATOR LARA THANK
YOU I HAVE A QUESTION FOR
MISTER LARSON WHEN IT CAME TO
-- THE TECHNOLOGY AND THE DATA
THAT'S BEING USED TO -- THE
SOFTWARE THAT THE ADJUSTERS USE
YOU MENTIONED THAT AS A AS AN
OF AN ISSUE -- FOR PRODUCING
AN ACCURATE REPAIR RATES AND
ESTIMATES WHAT DO YOU CONSIDER
WHAT ARE SOME RECOMMENDS THAT
YOU THINK WE NEED TO DO TO
MAKE SURE THAT WE'RE ACTUALLY
GETTING THE ACCURATE THE
THAN THE APPROPRIATE RATES
YEAH THE THE PROGRAM
NAY USES ONES
I THINK THAT -- IT BE PRUDENT
UPON INSURANCE CARRIERS
TO BRING AND FROM THE VERY
BEGINNING LOCAL CONTRACTORS
TO HELP THEM ESTABLISH THE
REPLACEMENT PRICE AND THAT'S
OFTEN WHAT THEY DO BUT THE
FIRST SALVO IS TO SEND YOU AN
EXACT MADE ESTIMATE AND SOME
OF THE INSURERS MAY ACCEPT THAT
AND JUST SAY WELL I GUESS THIS
IS ALL I'M GONNA GET I GOTTA
FIGURE OUT HOW TO REBUILD MY
HOUSE THE NEXT LEVEL IF YOU
COMPLAIN IS FOR THEM TO HIRE
A BUILDING CONSOLE BUT THEN
TYPICALLY DO THAT FROM THE
BEGINNING A PUT TOGETHER THIS
EXACTLY MADE ESTIMATE AND THEN
THEY PRESENT IT AND SAY WELL
HERE'S HERE'S YOUR SETTLEMENT
THANK YOU FOR THE THE VICE
MAYOR THANK YOU FOR FOR YOUR
TESTIMONY ARE YOU DID BRING
UP AN ISSUE THAT I WOULD HAVE
BEEN CONTEMPLATING ABOUT --
YOU KNOW WE TALK ABOUT THE
INSURANCE ISSUE AND ADDRESSING
THE FIRES WE TENDED TO THINK
OF AS AN ECONOMIC ISSUE AND
NOT REALLY TAKEN TO CONSIDER
CONSIDERATION THE HUMAN ELEMENT
WHEN IT COMES TO PUBLIC HEALTH
-- FOOD SUPPLY -- IN ALL THESE
THINGS ARE IMPERATIVE NOW THE
COORDINATION AMONG AGENCIES
-- TO BE ABLE TO ADDRESS THESE
ISSUES OUT WHAT THE LOCAL
ERROR -- QUALITY BOARD HOW DO
WE ADDRESS FOOD SUPPLY ISSUES
AND SECURITY -- AND AND THE
PUBLIC HEALTH ASPECT CAN YOU TO
SHARE SOME THOUGHTS ON HOW THE
COURT IS THERE ANY COORDINATION
HOW TO RECORD MADE -- BECAUSE
THESE ARE THINGS THAT YOU
BROUGHT UP NOW THAT OUT WITH
THE LEGISLATURE ARGUMENTS FOR
ME WAS TRYING TO GET PEOPLE TO
REPLACE OUR HOME IMMEDIATELY
BUT HOW CAN YOU KNOW IF THERE'S
A MASSIVE ENVIRONMENTAL ISSUE
ANOTHER THAT ARISES WHAT
ABOUT FOLKS THAT YOU KNOW
WILL HAVE -- -- YOU KNOW
NOT AS GOOD THE IMMUNE SYSTEM
THAT WE NEED TO NOW ADDRESS
IN TERMS OF AIR QUALITY THAT
REMAINS SO YOUR CAN YOU SHARE
YOUR THOUGHTS AND EXPERIENCES
IN TERMS OF THE COORDINATION
OF DIFFERENT AGENCIES JUST TO
GIVE US SOME MORE PERSPECTIVE
ON THAT YEAH I I THINK -- WHEN
IT COMES TO CAL -- YES I THINK
THEY'VE DONE A FANTASTIC JOB
FOR OUR COMMUNITY THEY'VE COME
IN AND THEY'VE REALLY TRIED TO
HELP US NAVIGATE SOME OF THE
FEDERAL RULES AND OBLIGATIONS
THAT ARE THERE BUT THERE ARE SO
MANY UNKNOWNS THAT WE'RE TRYING
TO PREPARE FOR BOTH IN TERMS
OF HOW THINGS ARE GOING TO END
UP COSTING US ON THE BACK AND
WE HAVE SPECIFIC CONSULTANTS
THAT WE HAVE BROUGHT IN TO DO
OUR -- DOCUMENTATION TO MAKE
SURE THAT WHEN WE GET AUDITED
BY FEMA THAT WE DON'T END
UP HAVING TO GIVE ADDITIONAL
DOLLARS BACK BUT THERE ARE
THINGS THAT ARE STAFF ARE
LEARNING AS THEY GO SUCH AS THE
SIDEWALK ISSUE WE'RE CURRENTLY
IN A PROLONGED BATTLE WITH
FEMA OVER CORRECTING FOR PAYING
FOR THE SIDEWALKS AND EVERY
SINGLE DOLLAR THAT WE HAVE TO
PUT TOWARDS THINGS LIKE THAT
TAKE AWAY DOLLARS FOR OUR UNMET
NEED THROUGHOUT OUR COMMUNITY
SANTA ROSA FOR CONTEXT HAD
A ONE PERCENT VACANCY RATE
BEFORE THE FIRE THAN WHAT WE
SAW WAS FOLKS WHO WERE LIVING
ON THE MARGINS WERE DISPLACED
AUTOMATICALLY IN IN LARGE PART
BECAUSE THOSE WHO LOST THEIR
HOMES WHO HAD INSURANCE TO BE
ABLE TO PAY FOR THEIR HOUSING
WE'RE WILLING TO PAY FIVE
THOUSAND SIX THOUSAND TO TWELVE
THOUSAND DOLLARS I'VE HEARD A
MONTH FOR RENT IS -- RENTERS
WERE DISPLACING -- EXCUSE
ME LANDLORDS WERE DISPLACING
RENTERS FOR THOSE INDIVIDUALS
THOSE ARE THOSE VULNERABLE
FOLKS THAT YOU'RE TALKING ABOUT
AND WHAT'S GOING TO HAPPEN IS
WHEN THEY'RE EIGHTEEN MONTHS OF
ASSISTANCE RUNS OUT THOSE FOLKS
ARE ALSO WHO ARE LIVING ON THE
MARGINS ARE GOING TO HAVE TO
FIND THEIR OWN HOUSING AS WELL
IN A MARKET THAT'S TIGHT IN
AN AREA THAT'S EXPENSIVE WE'VE
SEEN THIS THROUGHOUT THE THE
WHOLE COMMUNITY NOT JUST WHAT
PERCENTAGE OF PEOPLE IF YOU
KNOW I HAVE DECIDED TO RELOCATE
AS OPPOSED TO REBUILD CAM AND
JUST HOW DIFFICULT IT IS TO TO
REBUILD SO THAT'S A HARD ONE
TO TO ANSWER WE ACTUALLY IN
OUR MONTHLY MEETINGS WE GET AN
UPDATE ON WHICH LOTS OF BEEN
SOLD THAT'S AN INDICATION BUT
IT'S NOT IT DOESN'T TELL US
THE PEOPLE OF RE LOCATED WITHIN
THE CITY OR IF THEY'VE GONE
ELSEWHERE I KNOW THAT THERE'S
PROBABLY SOME DATA THAT'S OUT
THERE THAT YOU CAN GET THE
WE WERE TOLD TO EXPECT SUMMER
BETWEEN A THIRD AND A HALF OF
FOLKS WHO LOST THEIR HOMES TO
NOT REBUILD IN SANTA ROSA RIGHT
NOW I THINK WE'RE ON THE LOW
END OF THAT I THINK FOR AROUND
TWENTY TWENTY FIVE PERCENT
-- FROM SOME OF THE SURVEYS
THAT I'VE SEEN WE'RE DOING A
LITTLE BIT BETTER BUT THAT'S A
SIGNIFICANT CHUNK OF FOLKS FROM
CENTER AS A THANK YOU THANK YOU
MISTER THANK YOU CENTER LARA
ASSEMBLY MEMBER GIPSON THANK
YOU VERY MUCH AND THANK THE
COMMITTEE CHAIRS AND BRING US
ALL TOGETHER CERTAINLY THIS HAS
-- ROCKED OF SACRAMENTO ROCK
CALIFORNIA BECAUSE CERTAINLY
NOTHING THAT WE'VE EVER IMAGINE
WE ARE IN UNCHARTED WATERS WHEN
IT COMES DOWN TO THE MODIFIERS
THAT WE HAVE -- -- -- OF HAVE
OCCURRED -- THUS FAR ONE THINK
MY COLLEAGUES ON BECAUSE I KNOW
THEY WERE ON THE BATTLEFIELD
YOU TRYING TO EVERYTHING THEY
CAN LEGISLATIVELY TO TRY TO
ADDRESS SOME OF THESE ISSUES
AND THIS MY QUESTION IS FOR AYE
COUNCILMAN OF MAYOR -- ROGERS
WHAT CAN BE THREE TAKE AWAY
THAT YOU WOULD LIKE FOR US TO
CONSIDER WHEN WE RETURN BACK
TO SACRAMENTO -- IN JANUARY
YEAH I I THINK I MENTIONED ONE
OF THEM WHICH IS THAT BETTER
COORDINATION OR UNDERSTANDING
OF WHAT FEMALE WILL PAY FOR
VERSUS WHAT INSURANCE PAYS FOR
-- AND HELPING US UNDERSTAND
HOW TO REBUILD -- THROUGH
THAT PROCESS THE OTHER ONE WE
TALK A LOT ABOUT REBUILDING
BETTER NOT JUST BUILDING BACK
TO WHAT WE HAD BUT ADDRESSING
SOME OF THE CHALLENGES THAT
HAVE BEEN FACING ALL OF OUR
COMMUNITIES AND CALIFORNIA TO
BEGIN WITH AND I'LL GIVE YOU
AN EXAMPLE OBVIOUSLY HOUSING
HAS BEEN TOUGH FOR PEOPLE TO
COME BY IN CALIFORNIA EVEN
BEFORE THE FIRES IF THERE WAS
A WAY FOR SACRAMENTO TO ADDRESS
NOT JUST SPENDING DOLLARS TO
PUT SOMEBODY IN AN APARTMENT
COMPLEX FOR EIGHTEEN MONTHS AND
TRY TO MOVE THEM FOR THAT WAY
WHILE THEY REBUILD THEIR HOME
BUT ACTUALLY WE IS A CITY WE
FLIPPED OUR OUR BUILDING CODES
TO ALLOW EIGHTY USER SECONDARY
UNITS TO BE BUILT FIRST ON
A PROPERTY IF SOME OF THE
INVESTMENT WAS FORWARD LOOKING
TO BUILD THOSE SECONDARY
UNITS FOR FOLKS TO LIVE IN
WHILE THEY'RE REBUILDING THEIR
HOMES THEN WE COME OUT OF IT
NOT JUST STRONGER BUT WITH
ADDITIONAL HOUSING STOCK SO
LOOKING AT WAYS TO REBUILD
BETTER HELP FOLKS TO HIT THEIR
ENVIRONMENTAL GOALS AS WELL
IN THAT REBUILD PROCESS I
SHOULD MENTION THERE'S A GOOD
PARTNERSHIP CITY SANTA ROSA
COUNTY OF CINEMA IT'S THEM A
CLEAN POWER THAT ACTUALLY PUT
TOGETHER AN ENERGY PACKAGE TO
ALLOW PEOPLE TO REBUILD NET
ZERO ENERGY AT NO ADDITIONAL
COST IT'S THINGS LIKE THAT THAT
WE NEED TO HELP THE WE NEED
TOOLS TO PROVIDE THROUGHOUT
OTHER COMMUNITIES AS WELL WE
JUST HAPPEN TO HAVE THE CCA
THAT ALLOWS US TO DO THAT
AND THEN THE THIRD ONE AND
I I DON'T MEAN TO HARP ON IT
TOO MUCH BUT SENSIBLE THINGS
LIKE THE ITEM IS ATION ISSUE
AROUND CONTENTS REALLY DOES
HAVE A SIGNIFICANT IMPACT
ON PEOPLE'S PSYCHES -- GOING
FORWARD AND AND TRY TO GET
THEM TO REBUILD SELF ACCEPTED
THE EIGHTEEN MONTHS THESE TO
BE LOOKED AT AS WELL THANK
YOU VERY MUCH THANK YOU MISTER
GIBSON I HAVE CENTER MORLOCK
ASSEMBLY MEMBER GRAYSON AND
COOLEY -- NEXT SENATOR MOORE LÀ
THANK YOU MISTER CHAIR MISTER
LARSON COULD YOU EXPLAIN WHAT
YOUR COMPANY IS AND WHAT YOUR
JOB IS SURE -- SO MY COMPANY
IS A FIRM THAT REPRESENTS
THE INSURED'S THE INSURANCE
COMPANIES SEND OUT THEIR
ADJUSTERS AND THE ADJUSTERS
FOR THE INSURANCE COMPANIES
REPRESENT THE INSURANCE
COMPANY I REPRESENT THE INSURED
THROUGH THE CLAIMS PROCESS
SO YOU'RE SOMEONE THAT WE WE
WILL DO EVERYTHING WE HELP THE
-- INSURED WITH THEIR INVENTORY
-- WE HELP THE INSURED WITH
THE VALUATION OF THEIR BUILDING
AND WE HELP THE INSURED WITH
NEGOTIATION OF THEIR RELOCATION
BENEFITS THEN HOW DO YOU ARE
YOU COMPENSATED FOR THOSE
SERVICES WE TAKE A FEE WE
TAKE A COMMISSION OFF THE
TOLL RECOVER THANK YOU THANK
YOU MISTER -- ASSEMBLY MEMBER
GRAYSON THANK YOU AND IT IS
QUITE CLEAR THAT THE FIRES WERE
VERY VERY DEFICIT DEVASTATING
-- FOR THE PAST COUPLE YEARS
IN A ROW -- HOWEVER IT'S
ALSO JUST AS CLEAR THAT THAT
DEVASTATION DIDN'T END WHEN WE
PUT THE FIRE OUT IT IS CONTINUE
TO MANIFESTED THROUGH THE
HARDSHIPS THAT PROPERTY OWNERS
OF OWNERS ARE EXPERIENCING
RIGHT NOW -- MISTER LARSON YOU
HAD MENTIONED -- THAT PEOPLE
WERE UNAWARE OF THEIR RIGHTS
AND THAT THIS WAS WRITTEN --
NUMBER TWO ISSUE -- WERE THERE
ANY EFFORTS -- THAT YOU KNOW
OF A BROAD BASED THAT THAT WENT
OUT TO TRY TO HELP PEOPLE AND
EDUCATE THEM ON THEIR RIGHTS
FOR INSURANCE COVERAGE WHAT
I'VE SEEN A LOT OF LITERATURE
PUT OUT BY THE STATE LOCAL
LOCAL MUNICIPALITIES -- I KNOW
THAT THE INSURANCE COMPANIES
TRAIN THEIR STAFF TO TO GO
THROUGH THEIR POLICY WITH TO
GO THROUGH THE POLICY WITH
THE INSURED'S -- BUT I THINK
THEY NEED TO DO A BETTER JOB
OF THAT OKAY AND THEN ALSO
-- -- QUITE RIGHT OF FROM
MISTER -- WOULD AS AS FAR AS
THE UPDATES AND CODES AND ALL
OF THAT YOU KNOW SOMEONE MAY
BUY A HOUSE AND FIFTEEN YEARS
LATER SOMETHING DEVASTATING
HAPPENS AND THEY LOSE THAT
HOUSE AND OVER THE TIME CODES
HAVE BEEN UPDATING ARE YOU
AWARE OF ANY EFFORTS THAT ARE
MADE BY INSURANCE COMPANIES TO
REACH OUT TO THEIR -- CLIENTS
ARE TO PROPERTY OWNERS THAT
THE INSURER TO HELP THEM TO
UNDERSTAND THAT A CODE UPDATE
MAY HAVE CAUSED HIM TO BECOME
UNDER INSURED INTERESTING
QUESTION AT ALL LEAVE TO THE
-- INSURANCE EXPERTS BUT I'VE
NOT HEARD OF A LOT OF THAT
-- I I I TALKED TO EXISTING
HOMEOWNERS SAY LOOK THE LESSON
OUT OF -- THE DISASTROUS GO
REVIEW YOUR POLICY THOSE OF
YOU WHO STILL HAVE A HOMES OF
OF FIRE RISK ALL OF CALIFORNIA
WE'VE LEARNED IS A FIRE AT FIRE
RISK SO EVERYBODY ON LOOK AT
THEIR POLICY NOW UNDERSTAND
THAT I DON'T KNOW THAT THE CODE
CHANGES ARE BUILT INTO THIS
INTO A REBUILD IN INSURANCE
POLICIES BUT IT'S SOMETHING
THAT IF IT'S NOT IN THERE OUGHT
TO BE LOOKED AT BECAUSE PEOPLE
ARE GETTING STICKER SHOCK IN
A NUMBER OF WAYS BUT THIS IS
LEADING THE LIST IS -- YOU
CAN LOOK AT FIFTY TO A HUNDRED
THOUSAND MORE FOR AN AVERAGE
HOME BEFORE YOU EVEN PUT A
SHOVEL IN THE GROUND AND I'M
NOT ARGUING AGAINST THE CODES
THAT THESE FOR ALL -- THEY
MADE SENSE AND IT'S JUST THE
ACCUMULATION OF THEM OVER THE
YEARS HAS ADDED A HECK OF A
A BIG COST TO THE BUILDING OR
REBUILDING MY HOME I APPRECIATE
THAT ANSWER AND THEN BACK
TO MISTER LARSON I HEARD YOU
ANSWER -- -- SENATOR MORLOCKS
QUESTION ABOUT -- THE COMPANY
AND WHAT YOU DO HOW YOU'RE
COMPENSATED BUT HOWARD HOW
ARE YOUR SERVICES -- RETAINED
WELL IT'S EITHER THROUGH
REFERRAL -- WE MARKET --
SANDERS SO WHEN THERE'S A
CRISIS OR DISASTER YOU MOVE
INTO THAT AREA AND THEN YOU
KIND OF LIKE IT THE AREA
WITH MARKETING MARKETING
YEAH I THANK YOU THANK YOU
ASSEMBLY MEMBER GRAYSON
ASSEMBLY MEMBER COOLEY
I JUST WANTED TO JUMP IN AND
OFFER A COMMENT ABOUT THIS
WHOLE PROCESS ON ONE OF THE
DISTINCTIVE THINGS ABOUT
THIS TYPE OF FIRE IS THE LOSS
OF FOUNDATIONS TO HOMES AND
ANYBODY WHO'S IN A HILLSIDE
LOCATION WITH AN OLDER HOME
LIKELIHOOD OF NEEDING A NEW
FOUNDATION IS GOING TO BE NEW
SEISMIC STANDARDS SO THERE'S
A CROSSOVER OF THE EARTHQUAKE
RISK WHEN YOU HAVE A HOME ON A
HILLSIDE LOCATION IN CALIFORNIA
IS REALLY GOING TO JUMP YOUR
COSTS ANOTHER FACTOR TO KIND
OF LOOK AT ON AND THE CONTRAST
IS IF YOU HAVE A NICER HOME
FIRE FIRE TRUCKS ROLL UP THEY
KNOCKED DOWN THE FIRE THE COOL
DOWN THE SITE THIS TYPE OF
MASS LOSS THE ACTUALLY JUST
COLLAPSE IN UPON THE STRUCTURE
ITSELF IT CAN JUST STAY HOT
FOR DAY AND A HALF AND AN
INTENSE HEAT IS WHAT DESTROYS
THE FOUNDATION SO THAT'S A
PART OF THIS EXPERIENCE OF
THESE VERY INTENSIVE LOSSES
JUST SCALING THROUGH THE ROOF
-- SOME OF THE SANTA ROSA
NEIGHBORHOODS WERE NOT HILLSIDE
NEIGHBORHOODS BUT SOME MORE AND
THAT SPILLS OVER I THINK FOR
US AS MEMBERS SITTING HERE I
JUST WANT TO SAY I'VE SENT TO
A LOT OF THESE HEARINGS IN MY
CAREER AND I THINK THE THING
THAT I WOULD SAY JUST FOR US
AS COLLEAGUES TO FOCUS UPON
CALIFORNIA LAW DOES REGULATE
CLAIMS PRACTICES THERE'S AN
UNFAIR PLANS PRACTICES ACT
AND THIS ISSUE OF CHANGING
ADJUSTERS I THINK YOU COULD
FORM AN OPINION RUNS AFOUL
OF THAT ACT BECAUSE THE KEY
OPERATIVE STANDARDS ONION FOR
CLAIM PROCESS THAT'S THE LAW
THAT WE'VE ADOPTED IS KNOWINGLY
COMMITTING OR PERFORMING WITH
SUCH FREQUENCY AS TO INDICATE
A GENERAL BUSINESS PRACTICE
ANY OF THE FOLLOWING ON UNFAIR
CLAIMS SETTLEMENT PRANK SO
YOU COULD SORT OF AS YOU
SHOULD ARE YOU LESS OKAY OUR
CARRIERS PERFORMING A CERTAIN
TYPE OF ACTIVE SUCH FREQUENCY
AS INDICATED GENERAL BUSINESS
PRACTICE SOME OF THE TESTIMONY
KIND OF ADDRESSES THAT ISSUE
WHAT IS THE KEY RULE FAILING TO
ADOPT AND IMPLEMENT REASONABLE
STANDARDS FOR THE PROMPT
INVESTIGATION PROCESSING OF
CLAIMS ARISE INNER INSURANCE
POLICIES SO FOR EXAMPLE WITH
THE TURNOVER VÀ GESTURES
THERE IS A QUESTION OF IS
THAT ACTUALLY A FAIR BUSINESS
PRACTICE WHEN EACH TIME THE NEW
ADJUSTER THAT NEW CONVERSATION
FOR THE INSURED BECOMES LIKE
PULLING THE SCAB OFF THE WOUND
AGAIN JUST CONTINUALLY HAVE YOU
KNOW SORT OF A GROUNDHOG DAY
IN THE MIDDLE OF A CATASTROPHIC
PLAN THIS IS NOT GOOD AND I
THIN SO I WOULD JUST SAY AS WE
SIT AND LISTEN TO THIS HEARING
THAT'S A KEY TAKEAWAY FORCES
MEMBERS WERE NOT THE INSURANCE
COMMISSIONER WE CAN ASK
OURSELVES ARE WE HEARING ABOUT
REPETITIVE PRACTICES SEEM TO
BE A GENERAL BUSINESS PRACTICE
THAT ON THE CIRCUMSTANCES JUST
SEEM TO US IS PERHAPS UNFAIR
AND WE HAVE ENOUGH LAW ON THE
BOOKS ALREADY TO KIND OF ASK
QUESTIONS IN THAT DIRECTION
AND URGE CHANGE IN ORDER TO
MEET THE LAW ASSEMBLY MEMBER
IF I COULD JUMP IN MP BACK ON
YOUR COMMENT TO REALLY FAST
ABOUT THE THE FOUNDATIONS
BECAUSE I'M REALLY TRYING
TO GIVE THIS COMMITTEE REAL
EXAMPLES OF WHAT SANTA RESINS
ARE GOING THROUGH IN CINEMA
COUNTY RESIDENTS ARE GOING
THROUGH IN THE DEBRIS CLEANUP
PROCESS THERE WAS AN ATTEMPT TO
LEAVE FOUNDATIONS INTACT WERE
POSSIBLE UNTIL THE DRIVEWAYS
INTACT FOR POSSIBLE OBVIOUSLY
TRYING TO SHIFT SOME OF THE
COSTS -- AWAY FROM REBUILDING A
HOME WHAT HAS ACTUALLY HAPPENED
IS THERE BEEN A NUMBER OF
HOMES COUPLE HUNDRED THAT ARE
CURRENTLY WORKING THEIR WAY
THROUGH A RENT A RESOLUTION
PROCESS BECAUSE THEY WERE OVER
EXCAVATED OR MORE WAS TAKEN
THEN SHOULD HAVE WE'VE HEARD
SOME REALLY HORROR STORIES OF
PEOPLES -- SWIMMING POOLS BEING
TAKEN THEIR DRIVEWAYS BEING
TAKEN WHEN THEY DIDN'T NEED TO
BE BECAUSE AT THE TIME PERHAPS
FEMALE WAS PAYING PART TIME
AND NOT PER A LOT IT'S SO MY
CONSTITUENTS ARE REALLY TRYING
TO FIGURE OUT HOW DO THEY MOVE
FORWARD WITH THEIR INSURANCE
COMPANIES WHEN THEY STILL HAVE
NOT BEEN ABLE TO RESOLVE THAT
OVER EXCAVATION ISSUED YET
IT'S BEEN INCREDIBLY DIFFICULT
THANK THANK YOU -- ANY OTHER
QUESTIONS FROM MY COLLEAGUES --
I DID A FINAL QUESTION MISTER
WOODS -- YOU YOU TALKED ABOUT
LABOR COSTS GOING UP TWENTY
TO TWENTY FIVE PERCENT AT AND
-- AND PART OF THAT VERTICALLY
UNDERSTANDABLE GIVEN THE
DEMANDS ANY THOUGHTS ABOUT WHAT
WE COULD DO ABOUT THAT BUT MAY
NOT BE IN YOUR PURVIEW BUT A
DOTTED LINE OUT FROM -- THIS
PANEL OUGHT TO BE TO SUPPORT
ANY AND ALL C. T.
E. PROGRAMS A TRAINING UNION
OR NONUNION WE NEED WORKERS
AND -- THE PROBLEM HAS BECOME
THAT SERIOUS IT'S A SUPPLY AND
DEMAND AND LABOR -- I HAVE --
TWENTY CONTRACTORS WHO TOLD ME
THAT WHEN THEY LEAVE A JOB SITE
-- THAT THEY'RE WORKING ON ON
FRIDAY AFTERNOON THEY'RE NOT
SURE THOSE SAME WORKERS WILL BE
BACK MONDAY MORNING BECAUSE OF
BOTH OUT OF STATE CONTRACTORS
AND LESS SCRUPULOUS ONES ARE
FOLLOWING EMPLOYEES AS THEY
LEAVE A JOB SITE SAYING HOW
MUCH YOU MAKE AN HOUR I'LL GIVE
YOU FIVE OR TEN BUCKS AN HOUR
MORE -- AND -- THAT'S PRETTY
ATTRACTED TO SOMEBODY SO THIS
LABOR SHORTAGES GOING TO SLOW
DOWN THE REBUILDING PROCESS
WHICH THE VICE MAYOR -- TALKED
ABOUT HOW MANY HOMES ARE UNDER
WAY WELL THE NUMBERS IMPRESSIVE
TO WE LOOK AT THE AGGREGATE AND
WE REALIZE THAT THIS IS -- I'VE
SAID FROM THE BEGINNING A THREE
TO FIVE YEAR BUILDING PROCESS
AND REBUILDING AT MINIMUM AND
MORE LIKELY A DECADE BEFORE THE
NORTH BAY LOOKS ANYTHING LIKE
IT USED TO AND THE HEART OF
THAT WILL BE SHORTAGE OF LABOR
THANK THANK YOU VERY MUCH I
WANT TO CONCLUDE THIS PANEL BY
THANKING EACH OF YOU FOR COMING
AND BRINGING YOUR INSIGHTS CAM
I HEARD YOU CLEARLY TALK ABOUT
THE CHANGING ADJUSTERS THE LONG
ATION OF THE PROCESS -- THAT
A LACK OF CLARITY ON RIGHTS
UNDER THE CONTRACT AND THE
NATIONAL EVALUATION TOOLS AND
THE PROBLEMS THAT WE WE COME
-- THAT COME ABOUT BECAUSE OF
THAT THANK YOU FOR YOUR INSIGHT
MISTER WOULD APPRECIATE THE ON
THE GROUND -- WISDOM THAT YOU
BRING NOT JUST ON BUILDING COST
SEEMINGLY SIMILAR BUT LABOR
COSTS ESCALATING AND CERTAINLY
-- INSIGHT ABOUT CODE CHANGES
IN THE COST THAT THEY BRING
AS I IMPORTANT DATA POINT
EVEN IF IT'S AN UNCOMFORTABLE
WANTS TO THANK YOU FOR THAT --
AND AND VICE MAYOR I I THINK
THAT THAT THERE'S NO DOUBT
THAT THAT YOU'RE YOU AND YOUR
COMMUNITY FEEL ON THIS --
HARDER THAN ANYONE WITH GOOD
REASON AND -- THE CONCERNS
THAT YOU'VE RAISED ABOUT THE
EIGHTEEN MONTH TIME LIMIT --
THE ITEM IS ATION REQUIREMENTS
THE CLEARING SETTLEMENTS --
ALL VERY RELEVANT THE FEMA
VERSES INSURANCE IN WHO PAYS
ALL VERY IMPORTANT AND I
HOW WE COULD REBUILD BETTER
STARTING WITH SECOND UNITS
IS AS A GREAT PEARL OF WISDOM
THAT I HOPE AND I'M SURE MY
COLLEAGUES WILL TAKE AWAY FROM
YOUR TESTIMONY TODAY THANK
YOU ALL FOR BEING HERE AND
FOR SHARING YOUR THOUGHTS AND
ALL RIGHT SO WE ARE WE'RE GONNA
GO TO THE PANEL NUMBER TWO
-- AND -- INVITE THEM UP AS I
INTRODUCED THEM TO YOU BUT THE
SECOND PANEL -- IS GONNA FOCUS
ON UNDER INSURANCE PARTICULARLY
WHEN NUMEROUS HOMES ARE LOST
AT THE SAME TIME AND THE COST
TO REBUILD SKYROCKET -- THESE
THIS CREATES A BIG A BIG
PROBLEM THE INSURANCE TO VALUE
REPRESENTS A RATIO OF INSURANCE
COVERAGE TO THE ACTUAL COST TO
REBUILD -- WHEN IT'S TOO LOW
WITH THE HOME IS UNDER INSURED
AND HOMEOWNERS WON'T HAVE
ENOUGH COVERAGE TO REBUILD THE
HOUSE SO PROVIDING INSIGHT ON
THESE ISSUES -- THIS MORNING
WE HAVE WITH US -- AMY BACH
ROB DARE IF I'M PRONOUNCING
THAT RIGHT JAR -- LLOYD DIXON
AND REX FRAZIER AMY BACH IS
THE EXECUTIVE DIRECTOR OF
UNITED POLICY HOLDERS A UNITED
POLICY HOLDERS IN ADVOCACY
AND ASSISTANCE ORGANIZATION
THAT WORKS DIRECTLY WITH
HOMEOWNERS OUT ROB IS A
PARTNER OF GEORGE PETERSON
INSURANCE AGENCY IN SANTA
ROSA HE'S A PARTNER AT THE
AGENCY I'LL DISCUSSES CLIENTS
EXPERIENCES WITH THE RECENT
FIRES AND WHAT HIS AGENCY
DOES TO SUGGEST APPROPRIATE
COVERAGE LEVELS MISTER DIXON IS
DIRECTOR OF THE RAND CENTER FOR
CATASTROPHIC RISK MANAGEMENT
AND COMPENSATION A DOCTOR DIXON
WILL PRESENT FINDINGS FROM
CALIFORNIA'S FOURTH CLIMATE
CHANGE ASSESSMENT WHILE THE
STUDY DOES NOT DOES -- DOES
LOOK AT FUTURE IMPLICATIONS
OF CLIMATE CHANGE IT ASSESSES
CURRENT INSURANCE MARKET
TRENDS IN A HIGH RISK FIRE
AREA IN THE SIERRA NEVADAS
AND FINALLY -- REX FRAZIER
AYE HE'S THE PRESIDENT OF THE
PERSONAL INSURANCE FEDERATION
OF CALIFORNIA WE REFER TO IT
AS PATH REPRESENTS THE LARGEST
INSURERS IN THE STATE AND
FOCUSES ON PERSONAL AUTO AND
HOMEOWNERS INSURANCE THANK
YOU ALL FOR BEING HERE WE'LL
START WITH AMY MISBACH THANK
YOU FOR BEING HERE GOOD MORNING
AND AND I REALLY DO APPRECIATE
THE OPPORTUNITY TO SHARE
INFORMATION BE OF SERVICE I
FEEL LIKE I'M AMONG MANY LONG
TIME COLLEAGUES HERE AND AND
THE UNITED HOUSE SOLDIERS FOR
THOSE OF YOU WHO ARE NOT AWARE
-- IS A FIVE ONE C.
THREE NON PROFIT WE STARTED
A RIGHT ACTUALLY BEFORE THE
OAKLAND BERKELEY FIRE NINETY
ONE -- SO OUR FIRST EXPERIENCE
IN A -- CATASTROPHIC WILDFIRE
WAS THAT ONE WHICH AT THE
TIME WAS OF COURSE THE RECORD
BREAKER SINCE THAT TIME
AND WE'VE HAD A NUMBER OF
OTHERS BUT AND THIS IS THE
OUR ORGANIZATION RUNS THREE
PROGRAMS THAT ARE RELEVANT
TO YOUR INQUIRE YOU TODAY A
ONE IS CALLED THE ROADMAP TO
PREPAREDNESS WERE GIVING PEOPLE
BUYING TIPS AND GUIDANCE AND
BASED ON WHAT WE LEARNED IN
THE ROADMAP TO RECOVERY WHERE
WE GO IN AFTER THERE'S BEEN
A DISASTER AND WE OFFER OF A
SERIES OF EDUCATIONAL EVENTS
IN PARTNERSHIP GENERALLY WITH
THE LOCAL PUBLIC OFFICIALS --
AND WE WE GIVE PEOPLE GUIDANCE
ON HOW TO COLLECT THE BENEFITS
OF WHAT THEIR RIGHTS ARE -- AND
THEN A LOT OF SUGGESTIONS FOR
TROUBLE SHOOTING IN OVERCOMING
OBSTACLES AND WE TAKE THE
LESSONS WE LEARNED THERE ARE
WE FEED THAT INTO THE ROAD
MAP TO PREPAREDNESS PROGRAM
AND TO AGAIN TO TRY TO TEACH
PEOPLE HOW TO AVOID SOME OF
THE PROBLEMS THAT DISASTER
SURVIVORS HAVE HAD WITH NOT
HAVING ENOUGH INSURANCE NOT
HAVING RECORDS ALL THAT SORT
OF THING SO THEN THE THIRD
PROGRAM IS THE ADVOCACY
INACTION AND THAT'S WHERE WE
WORK WITH -- ELECTED OFFICIALS
LIKE YOURSELVES TO TRY TO COME
UP WITH STRATEGIC WAYS EITHER
THROUGH LEGISLATION OR OTHER
MEANS OF OF TRYING TO SOLVE
THESE PROBLEMS BUT I'M HERE
TO TO TO SAY SADLY -- THAT YOU
KNOW WE REALLY HAVEN'T MADE
A WHOLE LOT OF PROGRESS AND
A IN ON SOME LEVELS AND IT'S
NOT BECAUSE THERE AREN'T LAWS
THERE ARE GOOD STRONG LAWS
IS AND AS KEN COOLEY POINTED
OUT WE DO HAVE UNFAIR CLAIMS
PRACTICES IN THE CODE WE'VE
GOT THE FARE CLAIMS HANDLING
REGULATIONS WE'VE GOT THE AND
INDUSTRY STANDARDS -- AND AND
SO IT'S IT'S NOT NECESSARILY
AN ISSUE OF NEEDING TO PASS
MORE LAWS IT MORE ON WE'VE GOT
TO ENFORCE THE ONES WE'VE GOT
AND I THINK WE'VE REALLY GOT
TO HAVE A LOT MORE COOPERATION
FROM THE INDUSTRY FOR FOR THEIR
OWN FOR THEIR OWN GOOD AND SO I
I JUST WANT TO REVIEW A COUPLE
OF QUICK ISSUES THE THE UNDER
INSURANCE PROBLEM THE GAPS
THE ADJUSTING ISSUES YOU'VE
ALREADY BEEN TALKING ABOUT
THEM WITH THE PRIOR PANEL --
WHAT LAWS WE ALREADY HAVE ON
THE BOOKS AND THEN OF COURSE
WE YOU PASSED A NUMBER OF NEW
ONES THIS SESSION AND THEN JUST
THE MARKET PLACE -- I THINK
ULTIMATELY -- I WOULD IMAGINE
YOUR REAL GOAL HERE IS OKAY
LET'S DO THIS BETTER NEXT TIME
AND WHAT WE WHAT WE GOT COME
IN -- I THINK THERE'S JUST A
GENERAL FEELING OUT THERE THAT
AND YES THIS WAS AN AWFUL THIS
IS AN AWFUL WILDFIRE SEASON
TWO THOUSAND SEVENTEEN I AM WE
ALL ARE HAPPY TO SEE IT IN THE
REAR VIEW MIRROR TWO THOUSAND
EIGHTEEN THOUGH NOT THAT MUCH
BETTER SO KNOWING THAT -- AND
KNOWING HOW THAT THAT THAT THE
WHAT WE HAVE IN OUR MARKETPLACE
WE HAVE PRIVATE COMPETITIVE
INSURANCE COMPANIES THE BRAND
NAMES YOU ALL RECOGNIZE WE'VE
GOT THE SURPLUS LINES LESS
REGULATED COMPANIES THAT YOU'RE
GOING TO BE HEARING A LOT MORE
ABOUT SINCE THEY'RE PICKING
UP PORTIONS OF THE MARKET THAT
THE BRAND NAMES ARE LEAVING
AND THEN YOU HAVE ARE CLAUSE
I GOVERNMENT -- FALL BACKS WE
GOT THE FAIR PLAN AND AND THE
CA SO THOSE ARE THE THOSE ARE
THE FOUR MAIN AREAS AND I KNOW
YOU WANT ME TO KEEP MY REMARKS
PRETTY SHORT SO I'LL JUST RECAP
AND THE YOU GOT THE SURVEY
RESULTS -- YOU SLATE AND PUT
THOSE IN YOUR IN YOUR MEANING
MATERIALS OUR ORGANIZATION
-- STARTING FROM WEEK ONE
BEFORE THE FIRES WERE FULLY
CONTAINED OUT LISTEN TODD'S WE
WERE WE HAD A TABLE WITH THE
DEPART OF INSURANCE AND CINEMA
COUNTY BUILDING OUT THE LOCAL
ASSISTANCE CENTER WHICH ONCE
IT BECAME FEDERAL IT BECAME
A DRC SO MY ORGANIZATION WAS
THERE WE HAD VOLUNTEERS WHO
CAME IN FROM WILD ARE AREAS TO
GIVE PEOPLE -- JUST A A LITTLE
BIT OF A SHOULDER TO CRY ON
AND THEN OUR ORGANIZATION PUTS
OUT VERY BASIC INFORMATION
ABOUT WHAT YOU CAN EXPECT
AND AND OUT WHAT YOUR RIGHTS
ARE AND HOW TO AVOID PROBLEMS
ROTATING ADJUSTERS HAS BEEN
A CHRONIC PROBLEM LEGISLATURE
ALREADY TOOK A CRACK AT IT
WITH REQUIRING THAT IF THE
COMPANY CHANGES ADJUSTERS MORE
THAN I THINK IT'S LIKE MORE
THAN THREE -- IN A SIX MONTH
PERIOD YOU HAVE TO GET A STATUS
REPORT SO THERE THE BUT THAT'S
AN EXAMPLE OF SOMETHING THAT
THAT THAT YOU GUYS DID BUT I
DON'T REALLY THINK IT'S GETTING
CARRIED OUT IN REAL LIFE AND
THE SAME THING WITH -- WITH
-- YOU DON'T THE INSURED IS
SUPPOSED TO BE GIVEN A COPY
OF THEIR POLICY WITHIN THIRTY
DAYS AND THAT'S IT SOUNDS
BASIC BUT AGAIN THESE THINGS
ARE NOT HAPPENING THE WAY
THEY SHOULD THE POLICY HOLDER
THERE'S JUST A MASS AMOUNT OF
MISINFORMATION CONFUSION OUT
THERE AND I KNOW WE CAN IMPROVE
THAT BY CONTINUING TO DO MORE
COLLABORATION DEPARTMENT OF
INSURANCE HAS BEEN A FANTASTIC
COLLABORATOR WITH OUR AGENCY
AND SO HAS THE CITY OF SANTA
ROSA THEY'VE BEEN PARTNERING
EVERY TIME WE DO A WORKSHOP
WE'VE DONE WELL OVER EIGHTEEN
OF THEM AT THE SAME PLACE -- IN
DOWNTOWN SANTA ROSA WE'VE DONE
THREE IN NAPA AND EVERY TIME
WE DEAL -- PUBLIC OFFICIALS
PARTICIPATE -- SENATOR DODD'S
AID WAS AT OUR ONE OF OUR
RECENT ONES ON THE DEAL WHY HAS
SENT A REPRESENTATIVE TO ALMOST
EVERYONE SO I THINK WE HAVE
A NICE WE CALL IT THE ROADMAP
TO RECOVERY WE DON'T ENGAGE
INSURERS AS MUCH AS MAYBE WE
COULD -- BUT I WILL TELL YOU
THAT AT THE BEGINNING OF THE
LEGISLATIVE SESSION I DID TRY
TO CONVENE A MEETING WITH --
AS MANY ENSURE REPS AS I KNEW
FROM MY MANY YEARS OF BEING A
CONSUMER ADVOCATE ON INSURANCE
UP THERE -- AND YOUR STAFF
MEMBERS TO SORT OF SAY OKAY --
INSURERS LET'S SEE IF WE CAN
YOU KNOW KEEP YOU OUT OF THE
PAPERS A LITTLE BIT HERE AND
GET YOUR CUSTOMERS A LITTLE
BIT -- HAPPIER AND NOT HAVE THE
SAME FIGHTS THAT WE ALWAYS HAVE
WITH YOU KNOW DO YOU HAVE TO
REQUIRE THE SOCIALIZATION WHEN
EVERYTHING IS GONE -- REALLY
YOU KNOW DO YOU HAVE HAVE
TO ROTATE ADJUSTERS WITHOUT
CONTINUITY YOU KNOW COULD YOU
COULD WE FIX THESE THINGS A BUT
WE REALLY DIDN'T GET VERY FAR
IN OUR LITTLE MEETING AND --
SO NOW JUST TO BRING IT BACK
TO THE END OF MY REMARKS AS I
AM LOOKING FOR TO ANSWERING ANY
QUESTIONS -- CLEARLY -- THAT
THERE ARE MAJOR GAPS HERE IN
PEOPLE'S IN PEOPLE'S COVERAGE
AND YOU'VE BEEN HEARING AGAIN
THIS IS NOT THE FIRST TIME THE
LEGISLATURE HAS LOOKED AT THE
ESTIMATING TOOLS THAT INSURERS
ARE USING AT THE POINT OF SALE
THERE WAS A HEARING AFTER THE
SAN DIEGO WILD FIRES WHERE THE
EXECUTIVES FROM MARSHALL'S WITH
BACK WERE BROUGHT IN TO SAY HOW
COME YOU GUYS ARE GETTING ALONG
WHAT'S GOING ON HERE SO AGAIN
WE HAVE BEEN TRYING TO YOUR THE
LEGISLATURE HAS DONE A NUMBER
OF DISCLOSURE BILLS YOU'VE DONE
A NUMBER OF OF BILLS TO TRY TO
GET THE CONSUMER MORE AWARE TO
PAY ATTENTION THAT THERE ARE
DIFFERENCES IN DIFFERENT KIND
OF POLICIES BUT WHAT WE HAVEN'T
SOLVED IS THE FACT THAT THE
CONSUMER REALIZE AT THE POINT
OF SALE ON THE PROFESSIONALS
THEY DON'T KNOW ANYTHING ABOUT
INSURANCE THEY DON'T KNOW
ANYTHING ABOUT REAL STATE OTHER
THAN MAYBE WHAT THEY PAID FOR
THEIR HOUSE MAYBE THEY KNOW
HOW MUCH SQUARE FOOTAGE THEY
HAVE ZERO IDEA ABOUT WHAT
THEIR INSURANCE NEEDS ARE AND
THAT'S WHAT I ALWAYS ASSUMED
THAT AN INSURANCE AGENT BROKER
PROFESSIONAL THAT'S WHAT THEY
GET THEIR COMMISSION FOR THEY
DON'T GET A COMMISSION JUST
FROM PASSING THE PAYMENT YOU
KNOW FROM THE CONSUMER TO
THE TO THE COMPANY THEY DO
HAVE A ROLE THAT SAID THEY
ARE BETWEEN A ROCK AND A HARD
PLACE BECAUSE THEY DON'T GET A
LOT OF DISCRETION IN TERMS OF
WHAT NUMBER THEY PUT THEY ARE
GIVEN A SOFTWARE PROGRAM TO
USED TO GENERATE A QUOTE AND
THEY DO THAT SO IT'S NOT I'M
NOT IS INTERESTED IN POINTING
FINGERS OF BLAME AS I AM AT
FINDING SOLUTIONS BUT I WILL
TELL YOU I THINK IN GENERAL THE
INSURANCE COMPANIES -- DON'T
THEY'RE JUST NOT USED TO THESE
THIS MANY TOTAL LOSSES AT ONCE
IT IT REALLY TO BE COLLOQUIAL
IT FREAKS THEM OUT COMPLETELY
THEY DON'T LIKE TO BEND THE
RULES THEY TREAT THESE CLAIMS
VERY MUCH LIKE THE CREEK TREAT
ALL THEIR CLAIMS THEY ARE NOT
USED TO THIS KIND OF ORGANIZE
PUSH BACK FROM THEIR CLIENTS
-- BUT THIS IS THE REALITY OF
A MASS DISASTER IT WE'VE GOT
TO DO BETTER SO I THANK YOU FOR
BEING HERE -- WITH THAT GOAL
IN MIND THANK YOU MISS FLOCK
AND THANK YOU FOR BRINGING
YEAR MANY YEARS OF EXPERIENCE
AND WISDOM AND INSIGHT TO
OUR PANEL TODAY AND I'M SURE
THEY'LL BE QUESTIONS IN JUST
A COUPLE MINUTES -- MISTER
DARE I PRONOUNCING THAT RIGHT
IT'S A THEIR PARTNER IN AN
INSURANCE AGENCY YOU'RE SELLING
POLICIES TALKING THROUGH WITH
CONSUMERS WHAT THEY'RE GETTING
ON WITH THEY'RE NOT GETTING
OBVIOUSLY USING THE SAME THING
THAT -- WE HAVE SEEN HERE AND
YOU'VE EXPERIENCE WHICH IS A
BIG CHALLENGE WHEN YOU HAVE
SUCH A MASSIVE CATASTROPHE THAT
WE EXPERIENCE THAT YOU HAVE
EXPERIENCE OF WHAT THE INSIDE
YOU BRING FROM ALL OF THAT WELL
A LITTLE BIT OF BACKGROUND ON
OUR AGENCY JUST TO GIVE YOU
SOME PERSPECTIVE -- WE HAD --
NINETEEN HUNDRED CLAIMS AT THE
PEAK LAST OCTOBER NOVEMBER --
OF THOSE CLAIMS -- TWO HUNDRED
AND FIFTY FOUR WERE TOTAL HOME
LOSSES SO -- YEAH THAT'S IN
OUR COMMUNITY THAT'S YOU KNOW
HUNDREDS OF OUR FRIENDS OF
THE PEOPLE THAT WE PLACE IN
OUR KIDS PLAY SOCCER TOGETHER
-- BASEBALL EXCEPT FOR -- THE
BUSINESS OWNERS TO INSURE SO
VERY VERY PERSONAL SITUATION
FOR US IN OUR IN OUR EMPLOYEES
-- RIGHT THAT RIGHT NOW THE
THE MOST RECENT NUMBERS THAT
I'VE SEEN WHAT WE'VE WE'VE
GOT JUST UNDER US SIX HUNDRED
MILLION AND FIRE CLAIMS NOW SO
-- WE HAVEN'T -- TAKEN ON A A
TREMENDOUS AMOUNT OF STAFF TO
DEAL WITH THIS IT'S JUST BEEN
ARE ARE THE EMPLOYEES WE'VE
GOT -- WE'VE GOT EIGHTY EIGHTY
TWO EMPLOYEES IN SANTA ROSA
HAVE ALL JUST BEEN STEPPING
UP AND AND WORKING HARD TO
TAKE CARE OF OUR CLIENTS TO
POLICY HOLDERS -- AND IN FRONT
I WANT TO MAKE MAKE CLEAR
THERE'S THERE'S TWO SIDES OF
DISTRIBUTION WITHIN THE AGENCY
PLAN YOU KNOW WE ARE WHAT'S
CALLED AN INDEPENDENT AGENT
SO WE'RE BROKERS WE REPRESENT
MULTIPLE INSURANCE COMPANIES
-- THAT THE OTHER SIDE OF IT
DID DISTRIBUTION IS IS THE
DIRECT WRITER SO THAT'S THE
FARMERS THE STATE FARM -- ALL
STATE TRIPLE A SO -- YOU I'M
HERE TO REPRESENT -- YOU KNOW
THE INDEPENDENT AGENCY SIDE
SPECIFICALLY WHAT YOU KNOW HOW
WE DO THINGS WITH OUR AGENCY
-- SO YOU KNOW WHEN WE WHEN
WE TALKED TO A HOMEOWNER -- UP
TO TEN SOMEBODY WHO'S BUYING
A HOME OR SOMEBODY OWNS A
HOME AND THEY WANT TO TALK TO
US ABOUT POTENTIALLY MOVING
THEIR INSURANCE TO US -- YOU
KNOW WHAT OUR AGENTS DO THEY
TALK TO THEM ABOUT THE HOUSE
-- WE DEAL WITH THE INTERNET
RIGHT NOW -- IN TODAY'S DAY
AND AGE YOU KNOW YOU CAN GO ON
THE LOW AND SEE FIFTY EIGHTY
PICTURES OF THE HOUSE TO GET
A REAL IDEA OF WHAT WHAT THAT
HOUSES -- IS ALL ABOUT -- BUT
BUT WE TALK TO THEM -- YOU
KNOW IF IT'S AN EXISTING HOME
OR WE TALK TO THEM ABOUT WHAT
SORT OF UPGRADES THEY'VE MADE
-- HOW RECENTLY THE UPGRADES
HAVE BEEN HAVE THERE BEEN
ADDITIONS THAT THEY MADE TO
THE HOUSE AND THEN WE'VE GOT
STANDARDS IS AS AN AGENCY THAT
WE -- HOUSE FOR A COST PER
SQUARE FOOT -- YOU KNOW HOST
-- PRE FIRE WE WERE WE WERE
WE WERE INSURING ANYTHING FOR
UNDER TWO HUNDRED DOLLARS A
FOOT ANYONE SANTA ROSA -- --
CERTAIN AREAS OF SANTA ROSA
WE WE WOULD BE INSURING HOUSES
FOR THREE HUNDRED FIFTY DOLLARS
A FOOT FOUR HUNDRED DOLLARS
A FOOT -- AND THEN ON TOP OF
THAT WE WOULD ADD -- EXTENDED
REPLACEMENT COST SO THAT'S THE
THAT'S THE COVERAGE THE DATE
WE CAN PROVIDE TO OUR CLIENTS
-- ANYWHERE FROM FOR US IT'S
REALLY FIFTY PERCENT ADDITIONAL
SO IF YOU'VE GOT SOMETHING
INSURED FOR TWO HUNDRED DOLLARS
A FOOT IT'LL GIVE YOU THREE
HUNDRED DOLLARS A FOOT ABOUT
FIFTY PERCENT LEVEL -- WE'VE
GOT MANY OF OUR CLIENTS --
WITH A HUNDRED PERCENT EXTENDED
REPLACEMENT COST SO -- A LOT
OF THE HOMES THAT WE LOST OUR
CLIENTS LOST IN IN SANTA ROSA
WERE INSURED FOR YOU KNOW FOUR
HUNDRED DOLLARS A FOOT WITH
FIFTY PERCENT ON TOP OF THAT
-- SO -- TALKING TO THE TO THE
CLIENT LEARNING ABOUT THE HOUSE
THEN THE NEXT STEP FOR US IS
TO TO RUN THIS FAX ON THE HOUSE
THROUGH A REPLACEMENT COST
ESTIMATOR THAT THE INSURANCE
CARRIERS HAVE SO WE'LL GO
OUT THE MULTIPLE CARRIERS AND
-- AND AND RUN THROUGH THAT
THAT MODEL THAT THEY HAVE TO
TO GET AN IDEA OF WHERE THEY
THINK THOSE MODELS THINK THE
PRICE SHOULD BE ARE IN SOME
INSTANCES -- THEY COME IN --
EARLY -- WHERE WHAT WHAT WE
FEEL WHERE THEY SHOULD BE --
IN SOME CASES WE WE FEEL THERE
LOW AND -- WILL WILL GO BACK
TO THE -- CLIENT TALK TO THEM
ABOUT WHERE WE THINK IT NEEDS
TO BE IN THE GULF NEGOTIATE
THAT HIGHER VALUE -- WITH THE
INSURANCE COMPANY -- SO SO
THAT'S KIND OF THE PROCESS
THAT WE WE DO -- YOU KNOW IT'S
ONLY AS GOOD AS TO THE THE
THE EARLIER PANEL IS THE IS
THE THAN THE NUMBERS THEY HAVE
PLUGGED INTO THOSE SOFTWARE
PROGRAMS BUT -- YEAH WE HAVE
ONE OF OUR OUR CARES RIGHT A
LOT OF BUSINESS WITH -- POST
FIRE THEY WITHIN THREE WEEKS
OF OF OF THE FIRES LAST YEAR
-- THEY THEY PUT THE MINIMUM
STANDARD THREE HUNDRED DOLLARS
A FOOT IN THEIR REPLACEMENT
COST ESTIMATOR BECAUSE THEY
SAW WHAT WAS HAPPENING -- WITH
THE REPLACEMENT COST AND AND
THE THE DEMAND SEARCH COMING SO
THIS YEAR IT SOUNDS LIKE THAT
AT LEAST A FOR YOUR AGENCY
-- AND I DON'T KNOW HOW MANY
HUNDREDS OF PEOPLE AT THAT
BEEN AFFECTED THAT THAT YOU'VE
COVERED THAT THEY SEEM TO BE
SATISFIED THEN THAT THEY'RE
GETTING THE ARE THAT THEY'RE
GETTING THE MONEY THAT THEY
THINK THEY NEED TO REBUILD AND
IS THAT WHAT WE'RE HEARING FOR
US IN PARTICULAR YES WE'VE GOT
WE'VE GOT ABOUT A HANDFUL OF
PEOPLE THAT -- WE THINK THERE
MIGHT BE A SITUATION OF UNDER
INSURANCE -- AND YOU KNOW
WHAT WITH THAT E.
ME ALTERNATELY YOU KNOW THE
THE WHAT TO ENSURE THE HOUSE
FOR IS THE IS THE HOMEOWNERS
RESPONSIBILITY BUT THEY NEED
HELP FROM YOU KNOW OFFICES AS
PROFESSIONALS TO TO -- TO HELP
THEM FIGURE OUT WHAT THAT'S
GOING TO COST SO -- YOU KNOW
I THINK YOU TO HEAR THAT YOU
KNOW THAT I I HEAR THIS ALL
THE TIME IN SANTA ROSA HOW
MANY HUNDREDS AND HUNDREDS
OF PEOPLE ARE UNDER INSURED
AND -- YOU KNOW PART OF THAT
I MEAN YOU KNOW THERE THERE
IS PRICE SENSITIVITY ON THE
BUYERS PARTS OF IT SOMEBODY
BY THEIR FIRST HOME -- IF IF
IF THEY'VE GOT YOU KNOW EIGHT
HUNDRED DOLLARS THE BUDGET FOR
HOMEOWNERS INSURANCE AND WE'RE
PROPOSING SOMETHING THAT MIGHT
BE ELEVEN HUNDRED AND THEY'RE
GONNA PUSH BACK -- TO TRY TO
GET IT CLOSER TO WHERE WHAT
THEY'VE GOT AVAILABLE TO TO
PAY SO -- BUT BUT IT AND THEN
WE'VE WE'VE SEEN WE RUN INTO
AGENTS THAT WILL -- YOU KNOW
IF WE CAN THE THE REPLACEMENT
COST OF FIVE HUNDRED THOUSAND
ON THE HOUSE -- THEY MAY ENSURE
FOR FOUR HUNDRED AND AND TRY
TO CONVINCE THIS HOMEOWNER TO
ENSURE FOR FOUR HUNDRED AND
THEN I'LL PUT SOME EXTENDED
REPLACEMENT COST TO GET TO
THAT FIVE HUNDRED -- AND THAT'S
GOING TO SAVE THEM NOT A LOT
OF MONEY BUT IT'S GOING TO SAVE
SOME MONEY -- BUT WHEN YOU HAVE
A DISASTER ON THE SCALE THAT
WE HAD HERE -- AND YOU GET THAT
DEMAND SURGEON PRICING -- THAT
DOESN'T HOLD UP SO WHEN WHEN
NOW AT AS AN INDEPENDENT AGENT
ARE YOU IN BETWEEN THE INSURED
AND THE ENGINE INSURANCE
COMPANIES AFTER YOU'VE SOLD
THAT POLICY YEAH SO SO THAT'S I
THINK ANOTHER -- -- POINT IT'S
-- IT'S WORTH MENTIONING YOU
KNOW WE'VE HEARD A LOT ABOUT
THE INSURANCE ADJUSTERS IN THE
CARRIERS BE AN OVERWHELMING
THE ADJUSTERS BEING OVERWHELMED
-- WE EXPERIENCE THAT EVERY
SINGLE DAY I MEAN YOU KNOW
ALL OF OUR HOMEOWNERS AGENTS
ALL OF OUR COMMERCIAL AGENTS
WHO HAVE FIRES IN THESE
CLAIMS WERE TALKING TO THESE
AGENTS ARE THESE ADJUSTERS
YOU KNOW ON A DAILY OR WEEKLY
BASIS -- ME PERSONALLY I'VE
GOT A DOZEN HOMES WHERE I'M
INTIMATELY INVOLVED WITH
THE ADJUSTERS BECAUSE --
THEY'RE OVERWHELMED THEY'RE
NOT LOOKING AT THINGS THE WAY
WE'RE LOOKING AT A MORE THE
WAY THAT WE SEE THE CONTRACT
WORK SELF SO -- YOU KNOW IN
OUR CASE WE ARE THAT ADVOCATE
IN THE GO BETWEEN BETWEEN
THE INSURANCE COMPANY AND THE
POLICY HOLDEN AND WHAT'S AND
SO WE'VE HEARD IN THE EARLIER
PANEL SIMS EXAMPLES OF WHERE
THEY THINK THE PROBLEMS ARE
BUT FROM YOUR POINT OF VIEW
WHAT ARE THE PROBLEMS -- THE
THE THE BIGGEST PROBLEM THAT
WE EXPERIENCE IS JUST THE
LAYS WITH COMMUNICATION --
AND THAT'S SIMPLY BECAUSE --
ALL ALL ALL USE NATIONWIDE
FOR EXAMPLE -- WE WE HIT THOSE
GUYS VERY VERY HARD A WE HAD
A LOT OF LOT OF CLAIMS WITH
THEM -- VIA THERE THEY'VE GOT
YOU KNOW WELL OVER A BILLION
DOLLARS IN IN EXPOSURE JUSTIN
IN THIS THESE NORTH BAY FIRES
AND THEY DON'T HAVE THE PEOPLE
TO -- TO ADJUST THESE CLAIMS
I MEAN THERE THERE'S -- YOU
KNOW THEY'RE THERE I WOULDN'T
SURPRISE ME IF THERE POLLUTION
SEVEN EIGHT HUNDRED TOTAL LOSS
CLAIMS AND -- YOU KNOW YOU'VE
GOT A -- PERSONAL PROPERTY
ADJUSTER YOU'VE GOT A --
DWELLING ADJUSTER -- FOR PEOPLE
THAT HAD CARS BURN THEY'VE GOT
A -- AN AUTO ADJUSTER SO IN THE
EARLY STAGES OF THE OF RIGHT
AFTER THESE FIRES -- YOU HAD
-- CLAIMANTS HAVING TO DEAL
WITH THREE ADJUSTERS FOR THREE
SPECIFIC LINES OF COVERAGE
AND -- -- I I WHAT I SAW AS A
I'M A LOT OF BURN OUT I MEAN
-- TO -- -- LET'S SEE IT WAS
-- MISTER KHAN -- HE HE HE
TALKED ABOUT I THINK A LOT OF
THESE THE CARE IS JUST MOVING
THESE ADJUSTERS OUT WHAT I
SEE MORE IS MORE TURNOVER WITH
ADJUSTERS WHERE THEY'RE JUST --
THEY'RE BURNING OUT AND THEY'RE
JUST SAYING THIS ISN'T JUST A
WAR SUPPORT THE PAYCHECK I'M
GETTING SO IN ADDITION TO THE
ADJUSTER ISSUE ANYTHING ELSE
THAT YOU'VE -- AT THE WOULD
HIGHLIGHT AS A SIGNIFICANT
PROBLEM AND WILLING CLAIMS --
NOT YET -- BUT IT BUT -- TO
VICE MAYORS ROGER -- ROGERS
POINT YOU KNOW HE HE KEPT
REFERENCING THAT EIGHTEEN MONTH
IN THE IN THE POLICY CLAUSE FOR
THE ADDITIONAL LIVING EXPENSES
I'M NOT SURE WHO'S POLICY THOSE
ARE BUT MOST OF THE POLICIES
THAT WE HAVE -- HAVE TWO YEARS
AND THEN -- SOME OF THEM HAVE
-- WHAT THEY CALLED REASONABLE
EXPENSE BUT BUT -- TO TO HIS
POINT EIGHTEEN MONTHS IS ENOUGH
TO YEARS IS ENOUGH EITHER WITH
WHAT WE'RE DEALING WITH SO I
THINK -- I THINK THAT WE'RE
GOING TO SEE YOU KNOW WE JUST
PASSED THE ONE YEAR ANNIVERSARY
WE'RE GOING TO SEE A LOT OF
PEOPLE IN THE NEXT SIX MONTHS
WHO -- EITHER NO THEY'RE NOT
GOING TO BE IN THEIR HOMES
OR MAYBE HAVING STARTED
TO REBUILD THEIR HOMES AND
THAT'S GONNA BE A PROBLEM --
WHAT ONE LAST POINT AND
THEN WE'LL CONTINUE WITH
THE OTHER PANELISTS BUT TAKE
OUT THE BIGGER RACER FIRES
DIDN'T HAPPEN OR PUT IT A
DIFFERENT WAY WE'RE STARTING
OVER AGAIN AND YOU'RE SELLING
YOUR NEXT POLICY TO ME WHAT
HAVE YOU LEARNED THAT WOULD
INSTRUCT YOU TO MAYBE HOPE
THAT -- I DO A SMARTER JOB
AND IN THE INSURANCE THAT I
NEED OR YOU FEEL LIKE YOU'VE
BEEN DOING THAT YOU'VE BEEN
BEEN GETTING THE X.
THE REPLACEMENT COSTS IN THE
AND ALL THE REST THAT YOU IS
THAT IS EVERYTHING REALLY OKAY
-- EVERYTHING IS NOT REALLY
OKAY -- IN OUR COMMUNITY --
AND WITH WITH THE PEOPLE THAT
LOST THEIR HOMES I I FEEL FEEL
LIKE THINGS ARE ARE FAIRLY
OKAY WITHIN OUR AGENCY BUT
-- YOU KNOW WHAT IT REALLY
TAKES IS I MEAN NOW THAT WE'VE
HAD THIS EVENT -- IT DOESN'T
MATTER IF IT'S A HOMEOWNER
OR A COMMERCIAL CLIENTS EVERY
POLICY HOLDER WE HAVE -- IT
WANTS TO REVIEW THEIR LIMIT SO
WE THIS IS SOMETHING THAT WE
DO ON A REGULAR BASIS WITH OUR
CLIENTS -- I CAN GIVE YOU AN
IDEA -- I'VE GOT A OF A HOTEL
OWNER THAT -- HE HAD HIS HOTEL
INSURED FOR TWO HUNDRED FIFTY
DOLLARS A FOOT FOR FIVE SIX
SEVEN YEARS I'VE TRIED TO GET
HIM TO INCREASE THAT WOULDN'T
INCREASE IT WOULDN'T INCREASE
IT YOU KNOW WE JUST INSTANCE
INCREASED IT TO TO THE QUESTION
SIX HUNDRED DOLLARS A FOOT NOW
BECAUSE HE SEEN WHAT HAPPENS SO
SO IT'S THAT KIND OF IT'S NOT
GONNA HAPPEN TO ME THING AND
-- BUT IT DOES MEAN THAT THE
OF THE UNTHINKABLE HAPPENED AND
AND THAT'S WHAT WE'RE HAVING TO
DEAL WITH RIGHT NOW SO I THINK
COMMUNICATION WITH THE AGENTS
IN THE POLICY HOLDERS TRYING
TO EXPLAIN TO HIM -- WHEN
EVERYTHING YOU OWN IS GONE --
WHAT'S IT GONNA TAKE TO GO BACK
-- TO TO SOME SORT OF NORMALCY
THANK YOU MISTER THERE ARE
MISTER JACKSON YOU'RE UP NEXT
I UNDERSTAND YOU FIVE AT THE
RAND CENTER FOR CATASTROPHIC
RISK MANAGEMENT COMPENSATION
YOU FINISHED A STUDY ON CLIMATE
CHANGE AND THEIR IMPACT AND WE
LOOK FOR YOUR TESTIMONY THIS
MORNING -- GOOD MORNING AND
IT'S A PLEASURE TO BE HERE THIS
MORNING YET TODAY ALL OUT GIVE
SOME -- -- SOME OF THE FINDINGS
AND IMPLICATIONS OF THE STUDY
WE DID US PART OF CALIFORNIA'S
FOR CLIMATE CHANGE ASSESSMENT
AND IT WAS FUNDED BY THE
CALIFORNIA NATURAL RESOURCES
AGENCY AGENCY SO IN THIS STUDY
WOULD WE DO WE COMPARED THE
INSURANCE MARKET OUTCOMES
DIFFERENT MEASURES OF HOW THE
INSURANCE MARKETS PERFORMING IN
ZIP CODES WITH A HIGH WILD FIRE
RISK WITH IN -- WITH WITHOUT
COMES AND ZIP CODES WITH --
LOW -- WILD FIRE RISK AND SO
WHAT WE FIND AND I I CAN'T GO
THROUGH ALL THE FINDINGS BUT
I'LL TALK ABOUT THE A FEW MOST
RELEVANT TO THE -- THE HEARING
TODAY OUR FIRST REGARDING
THE THE COST TO THE PART OF
THE PREMIUMS FOR HOMEOWNERS
POLICIES WE LOOKED AT THE --
RATE PER THOUSAND DOLLARS OF
COVERAGE AND WE FOUND THAT IT
WAS SUBSTANTIALLY HIGHER IN THE
END THE CODES WITH HIGH RISK
-- HIGH WILD FIRE RISK AND YOU
KNOW YOU'D EXPECT THAT -- WE
ALSO FOUND THAT THOSE RATES
FOR THOUSAND DOLLARS COVERS
BEEN INCREASING A LOT FASTER
IN THE HIGH RISK ZIP CODES
OF ALASKA -- -- SEVENTY SINCE
NINETEEN FIFTY THOUSAND SEVEN
SO WHAT WE FOUND WITH THAT
-- THE RATES FOR A THOUSAND
DOLLARS OF COVERAGE WERE FIFTY
PERCENT HIGHER IN THE HIGH
RISK THE ZIP CODES AND THAT
BETWEEN TWO THOUSAND AND SEVEN
AND TWO THOUSAND FOURTEEN THEY
ROSE TWELVE PERCENT -- COMPARED
TO LOW RISK OF CODES WERE THE
ACTUALLY THE RATES FOR THOUSAND
DOLLARS COVERAGE COVERAGE FELT
FELT -- -- TWELVE PERCENT SO
YOU SEE -- YOU KNOW THE MARKET
ADJUSTING AND -- AND -- HIGHER
AS YOU'D EXPECT HIGHER RATES
IN HIGH RISK OF CODES NOW WHEN
WE TALK TO THE -- YOU KNOW TALK
TO THE INSURERS ABOUT THESE
FINDINGS -- YOU KNOW THEY THEY
BY A LARGE BELIEVE THAT THE
-- THE DIFFERENCES BETWEEN THE
HIGH RISK AND LOW RISK AREAS
DO NOT FULLY REFLECT THE ACTUAL
RISK DIFFERENCE BETWEEN THE
HIGH RISK AND LOW RISK AREAS
THAT -- THAT -- THAT THERE'S
SOME ABOUT COMPRESSION OF THE
OF THE THE RATE DIFFERENCES
ACROSS HIGH RISK AND LOW RISK
AREAS -- WE ALSO TALKED TO THE
CALIFORNIA DEPARTMENT INSURANCE
ABOUT THIS AND THEIR FEELING
WAS THAT THEY POINTED OUT FIRST
THAT THE RATES ARE INCREASING
A LOT FASTER IN THE IN THE HIGH
RISK AREAS IN THAT THE INSURERS
REALLY NOT HAVE NOT PROVIDED
SUFFICIENT EVIDENCE THAT -- --
GREATER RESTORE PRINCE OF RATE
DIFFERENCES ARE WARRANTED --
BETWEEN THE TWO THE TWO AREAS
THE SECOND AREA -- WANTED TO
TALK ABOUT TODAY WAS WHAT WE
FOUND OUT OF -- REGARDING THE
ADEQUACY OF COVERAGE AND TO
LOOK AT THAT WE COMPARED THE
AMOUNT OF COVERAGE -- USING
-- -- DATA REPORTED TO THE
DEPARTMENT OF INSURANCE FIGHT
BY INSURERS -- RELATIVE TO
THE VALUE OF THE STRUCTURES
-- BY ZIP CODE SO IT'S KIND OF
A RATIO OF COVERAGE TO -- TO
INSURABLE OR REPLACEMENT COST
OF THE OF THE STRUCTURE AND WE
FOUND IT IN THE LOW RISK LOW
ROB FOLLOWED WITH BLOW WILD
FIRE RISK AREAS THAT THAT RATIO
IS ROUGHLY HUNDRED PERCENT
-- SO THAT THE THE COVERAGE
AMOUNTS WERE COMPARABLE TO THE
REPLACEMENT AND -- MOUNTAIN THE
LOWER OF WILD FIRE RISK AREAS
AND THAT IN POINTED OUT THAT
DOESN'T INCLUDE EXTENDED -- THE
-- THE EXTENDED COVERAGE THAT'S
JUST THE YOU KNOW THE BASIC
COVERAGE JAY AND COVERAGE BE
ON THE POLICY -- SO WHILE IT'S
AROUND A HUNDRED PERCENT --
THAT REACHES RUN HOW TO PRESENT
A LOW RISK AREAS IT IS LOWER
IN THE HIGH RISK AREAS WE FOUND
IT WAS ABOUT TEN PERCENTAGE
POINT LOWER IN THE -- IN THE
HIGH RISK AREAS -- SO SO SO
THAT GIVES YOU SOME INDICATION
THAT -- AND COME BACK TO THIS
IN A MINUTE BUT -- THAT --
HOMEOWNERS IN HIGH RISK AREAS
TEND TO -- BY A LESS COVERAGE
RELATIVE TO THE VALUE OF OF
THE HOME -- TO PROVIDE ANOTHER
PERSPECTIVE ON THIS ISSUE OF OF
-- OF -- COVERAGE OUT OF THREE
-- ADEQUACY WE ALSO COLLECTED
DATA ON A CONFIDENTIAL BASIS
FROM A NUMBER OF INSURERS ON
THE NUMBER OR PERCENTAGE OF
RESIDENTIAL LOT PART CLAIMS
THAT UPDATED THE POLICY
LIMIT YOU KNOW THAT'S ANOTHER
INDICATION OF YOU KNOW HOW
OFTEN PEOPLE ARE BUMPING UP
AGAINST THEIR -- COVERAGE
LIMITS AND HAVING COVERAGE
PROBLEMS AND WE FOUND THAT --
THE INSURERS REPORTED ABOUT
SIX PERCENT OF CLAIMS PAID
AT THE POLICY LIMIT NO THAT'S
NOT A HIGH PERCENTAGE BUT
YOU KNOW A LOT OF -- A CLAIMS
ARE SMALL CLAIMS AND YOU
KNOW THEY'RE NOT THEY'RE NOT
GONNA PLAY POLICY LIMIT SO WE
ACTUALLY DIDN'T HAVE THE DATA
TO LOOK AT -- WHAT PERCENT OF
THE TOTAL LOSSES PAID AT THE
POLICY LIMITS BUT IT'S PROBABLY
UP SUBSTANTIALLY HIGHER --
OKAY SO WE TALKED ABOUT -- --
HEARD ALREADY ON THE PANEL A
NUMBER OF REASONS THAT -- THAT
-- THAT -- -- THAT THESE YOU
KNOW COVERAGE RATIOS MAY BE
LOW IN THE HIGH RISK AREAS ONE
OF WHICH THAT YOU KNOW IT'S
A IT'S A HOMEOWNER CHOICE TO
SOME EXTENT AND THERE ARE YOU
KNOW VERY PRICE SENSITIVE AND
TEND TO -- WANT TO -- CONTROL
OF OF THE COST OF COVERAGE
AND IF ANY SAID THERE'S A LOT
OF -- INFORMATION UNCERTAINTY
AND LACK OF INFORMATION ON ON
THIS WHOLE PROCESS OKAY SO --
THAT'S WE COME IN THE COVERAGE
TO VALUE RATIO WE ALSO FOUND IN
THE HIGH RISK AREAS THAT PEOPLE
TEND TO BUY HIGHS HAVE HIGHER
DEDUCTIBLES WE DIDN'T FIND
THAT THAT WAS A HUGE OF FACT
BUT THERE'S A THERE'S A -- --
TEND TO BE HIGHER DEDUCTIBLES
IN HIGH RISK AREAS SO -- LET
ME CONCLUDE BUT JUST OF MAKING
A FEW OBSERVATIONS ABOUT OUR
OUR FINDINGS -- FIRST -- YOU
KNOW I THINK IT'S IMPORTANT IT
HOMEOWNER INSURANCE PREMIUMS IN
CALIFORNIA REFLECT THE ACTUAL
RISK -- IN THE PROPERTY OWNERS
IN HIGH RISK AREAS ARE NOT
CROSS SUBSIDIZED BY PROPERTY
OWNERS AND LOW RISK AREAS AND
THERE'S A COUPLE OF -- REASONS
FOR THIS -- THE THE -- CALL
THESE RISK BASE RATES AND --
YOU KNOW THE ADVANTAGE OF THESE
RISK BASE RATES IS FIRST THAT
THE CREATE INCENTIVES -- TO
AVOID BUILDING AND THE RISK IF
AREAS SECOND THEY CAN ENCOURAGE
MITIGATION BY ALLOWING PREMIUM
REDUCTIONS ARE DEDUCTIONS FOR
RISK MITIGATION MEASURES AND
THIRD YOU KNOW YOU COULD ARGUE
THAT THOSE CROSS SUBSIDIES
BETWEEN THE LOW RISK AREAS
IN HIGH RISK AREAS THE STATE
REALLY AREN'T FAIR THE LOW
RISK AREAS YOU KNOW WHY SHOULD
PEOPLE AND YOU KNOW FROM POOR
URBAN AREAS -- THE IN EFFECT --
CROSS SUBSIDIZING THE PREMIUMS
IN HIGH RISK AREAS AND THESE
THESE -- NOW THE IF YOU MOVE
IF YOU GO TO RISK BASE RATES
THERE ARE YOU KNOW GOING TO
BE EXPENSIVE OR THAT THEY ARE
EXPENSIVE AND AND OUR WORKERS
FOUND THAT WITH CLIMATE CHANGE
YOU COULD WE WE SHOULD ONLY
EXPECT THAT -- THROUGH THESE
RATES TO INCREASE -- AS --
IS WILD PAR RISK -- INCREASES
TO THE TO THE CLIMATE CHANGE
SO THESE -- THESE -- HIGHER
RATES IN THE HIGH RISK AREAS
WILL UNDOUBTEDLY CREATE SOME
AFFORDABILITY PROBLEMS FOR
CERTAIN CERTAIN HOUSEHOLDS BUT
I THINK GOT YOU KNOW MY POINT
IS AND IT'S JUST A THOUGHT FOR
YOU KNOW HOW TO PROCEED MOVING
FORWARD THAT RATHER THAN YOU
KNOW WE SHOULD BE THINKING AS
A YOU KNOW THE STATE THAT THE
RATHER THAN PROVIDING CROSS
SUBSIDIES TO YOU KNOW TO REDUCE
RATES FOR ALL HOMEOWNERS IN
THE HIGH RISK AREAS THAT WE
TARGET THOSE SUBSIDIES TO
THE HOUSEHOLDS THE MOST NEED
THEM SO FOR EXAMPLE IN THE
-- NATIONAL FLOOD INSURANCE
PROGRAM WHAT YOU CONGRESS
HAS ASKED THE NATIONAL FLOOD
INSURANCE PROGRAM TO DEVELOP
AFFORDABILITY PROGRAMS FLOOD
INSURANCE AFFORDABILITY
PROGRAMS THAT PROVIDE
ASSISTANCE TO HOUSEHOLDS LOW
INCOME LOW NETWORK HOUSEHOLDS
IN YOU KNOW HIGH FLOOD RISK
AREAS AND I THINK THAT'S YOU
KNOW THAT'S SOMETHING TO THINK
ABOUT YOU KNOW THOSE KIND OF
WORRY ABOUT FUNDING SOURCE FOR
THAT AND WHO'S GOING TO PAY
FOR THAT BUT -- YOU KNOW I I
THINK WE'D BE BETTER OFF WITH
THE STATE WITH RISK BASE RATES
WITH TARGETED SUBSIDIES TO THE
HOUSEHOLDS THE NEED THEM AS
OPPOSED TO -- CROSS SUBSIDIES
THAT MAKE RATES CHEAPER FOR
ALL A HOUSEFUL TONIGHT RISK
AREAS MANY WHICH -- -- CAN
BE VERY WEALTHY REGARDING THE
ADEQUACY OF OF COVERAGE --
YOU KNOW THESE HIGHER PREMIUMS
WE'VE TALKED ABOUT CREATE
-- IN HIGH RISK AREAS CREE
OBVIOUS INCENTIVES FOR POLICY
HOLDERS TO REDUCE THE AMOUNT
OF COVERAGE THAT THEY BY AND
I THINK WE'VE HEARD SOME OF
THE WE'VE HEARD SOME OF THE
REASONS THAT -- THAT LEAD UP
POLICY HOLDERS TO DO THAT AND
I I DO AGREE WITH THE WITH
WITH THE TH ON THE PANEL THE
IMPORTANCE OF YOU'RE REVIEWING
THAT THAT PURCHASE PROCESS TO
MAKE SURE THE POLICY HOLDERS
FULLY UNDERSTAND YOU KNOW THE
TRADE OFFS OF OF WHAT THEY'RE
CHOOSING -- NO FOR A HIGH
INCOME HOUSEHOLD YOU KNOW IF
THEY WANT TO BUY A LOAF LOW
AMOUNT OF COVERAGE FOR THE
HIGH DEDUCTIBLE FINE YOU KNOW
WE DON'T WE'RE NOT WORRIED
ABOUT THEM -- BUT -- FOR LOWER
INCOME HOUSEHOLDS THAT -- MAY
HAVE LESS INFORMATION UNLESS
-- YOU KNOW SAVVY AND THE WHOLE
PROCESS I THINK IT'S IMPORTANT
TO THINK ABOUT HOW WE STRUCTURE
THAT PROCESS TO -- YOU KNOW
FULLY -- COMMUNICATE -- AND
PROVIDE THE RIGHT INCENTIVES
FOR ALL THE PARTIES TO
COMMUNICATE VIA THE TRADE OFF
BETWEEN -- BUYING HIGHER LEVELS
VERSUS LOWER LEVELS OF COVERAGE
AT THAT THANK YOU MISTER DIXON
FOR YOUR -- YOUR WISDOM --
FINALLY AT BATTING CLEANUP HERE
ON THE PANEL -- MISTER FRAZIER
FROM THE PERSONAL INSURANCE
FEDERATION OF CALIFORNIA
REX THANK YOU FOR BEING HERE
AND FOR YOUR TESTIMONY THE
SAME WAY YOU OF THE TWENTY
SEVENTEEN FIRE SEASON WAS
DEVASTATING AND FOR INSURANCE
INDUSTRY PROFESSIONALS THE
IMMEDIATE AFTERMATH WAS INTENSE
WITH PERSONNEL RELOCATING
FROM OTHER STATES TO ENSURE
IMMEDIATE PAYMENT OF CUSTOMERS
ADDITIONAL LIVING EXPENSES AND
SOME AGENTS HELPING CUSTOMERS
WHILE THEY HAD LOST THEIR OWN
HOME -- THE TWENTY SEVENTEEN
FIRE LOSSES WIPED OUT SIXTEEN
YEARS OF UNDERWRITING PROFITS
DATING BACK TO TWO THOUSAND
AND ONE BUT IMPORTANTLY
THERE'S NO REPORT OF ANY
INSURANCE SOLVENCY RELATED TO
THE FIRES AT THIS POINT OUR
MEMBERS REPORT THAT THE VAST
MAJORITY OF THE CLAIMS OVER
NINETY PERCENT ARE CLOSED
BUT THESE ARE TYPICALLY NOT
GOING TO BE THE TOTAL LOSSES
OTHER MORE LIKELY TO BE
CLAIMS SUCH AS SMOKE CLAIMS
THE REMAINING OPEN
CLAIMS ARE OBVIOUSLY MORE
COMPLICATED TOTAL LOSSES IN
NORTHERN CALIFORNIA CLAIMS
MANAGERS REPORT SIGNIFICANT
RECONSTRUCTION COST INCREASES
FOLLOWING THE FIRES IN CINEMA
NAPA COUNTIES A SHORTAGE OF
SKILLED LABOR AS A PARENT
DRIVING LARGE PRICE INCREASES
OF PARTICULAR NOTE ARE
REPORTS OF FRAMING CONTRACTORS
ATTEMPTING TO NAME THEIR PRICE
RAISING THE ISSUE OF BEHAVIOR
THAT'S MORE THAN SIMPLY DEMAND
SEARCH THE FEEDBACK IS CAN
STEP FEEDBACK IS CONSISTENT
WITH PUBLIC REPORTING ON
TO NOVA HOMES PULLING OUT
OF AN ARRANGEMENT EARLIER
THIS YEAR TO REBUILD HOMES
ON A BALK BASIS IN CINEMA
COUNTY THEY SPECIFICALLY
SITED AN INABILITY TO SECURE
FRAMERS ON A CONSISTENT BASIS
CUSTOMERS HAVE STRUGGLED
WITH HIGH COST PRELIMINARY
CONTRACTOR ESTIMATES THE
LACKING SUFFICIENT DETAIL
FOR INSURERS TO EVALUATE --
LEADING TO CUSTOMER ALARM
ABOUT INADEQUATE COVERAGE
WHEN INSURERS HAVE PURSUED
ADDITIONAL DETAILS THERE ARE
MANY INSTANCES WHERE UPGRADES
TO LOST HOME WERE INCLUDED
IN THE ESTIMATE AND HAD TO
BE BACKED OUT FOR CERTAIN
CATEGORIES SUCH AS WELLS AND
SEPTIC SYSTEMS WERE BIT AS
COMPLETE REPLACEMENTS WITHOUT
ADEQUATE INVESTIGATION AS TO
WHETHER A MORE LIMITED REPAIR
WOULD BE WARRANTED IN SUCH
SITUATIONS MANY ESTIMATES
HAVE BEEN EYEBROW RAISING
WITH ESTIMATES WELL ABOVE SIX
HUNDRED DOLLARS PER SQUARE FOOT
WHICH CLAIMS PROFESSIONALS TO
HELP TO ROOM TO REDUCE WITH A
MORE INVESTIGATION -- TRYING
TO GET WELL DOCUMENTED BIDS FOR
POLICYMAKERS CONCERNED ABOUT
THE ADEQUACY OF STRUCTURAL
INSURANCE COVERAGE THIS IS
AN IMPORTANT ISSUE THAT THE
LEGISLATURE CONSIDERED AFTER
THE OAKLAND HILLS FIRES IN
NINETEEN NINETY ONE AT THAT
TIME RESIDENTIAL PROPERTY
INSURERS TYPICALLY OFFERED A
GUARANTEED REPLACEMENT COST
POLICY WE'RE NOT SURE PROMISED
TO REBUILD THE HOME NO MATTER
HOW MUCH COVERAGE THAT THE
CUSTOMER HAD PURCHASED DURING
THOSE DAYS DISPUTES IN SUED
AS TO WHETHER THE CUSTOMER
WAS OVER INSURED BECAUSE SOME
CUSTOMERS OBVIOUSLY WOULD
ATTEMPT TO PRESS FOR LOWER
COVERAGE LIMITS KNOWING THAT
THE INSURER WOULD STILL BE
RESPONSIBLE FOR A COMPLETE
REBUILD REGARDLESS OF THE
COVERAGE PURCHASED FOLLOWING
OAKLAND HILLS THE FIRST ELECTED
INSURANCE COMMISSIONER JOHN
GARAMENDI EXERTED TREMENDOUS
PRESSURE UPON INSURERS TO
INCREASE THEIR PAYMENTS WELL
BEYOND THE REPLACEMENT COST
ESTIMATES WHICH SPURRED THE
MARKET TO MIGRATE AWAY FROM
GUARANTEED REPLACEMENT COST
POLICIES -- OAKLAND SENATOR
NICK PETROUS RESPONDED WITH
LEGISLATION EXPLICITLY ALLOWING
REPLACEMENT COST COVERAGE
WITH A MAXIMUM DOLLAR LIMIT ON
STRUCTURAL REPAIR ALONG WITH
MANDATES FOR INCREASED INSURER
EXPLANATION OF COVERAGES AND
DISCLOSURES ABOUT THE RISK
BOTH OF UNDER INSURANCE AS
WELL AS DEMAND SURGED FOLLOWING
A WIDESPREAD DISASTER WELL
THERE ARE SOME GUARANTEED
REPLACEMENT COST POLICIES
REMAINING IN THE MARKET THE
INDUSTRY STANDARD TODAY IS
THE LESS EXPENSIVE OPTION A
REPLACEMENT COST COVERAGE OF
THE MAXIMUM POLICY BENEFIT
WHICH IS ELIMINATED COMPLAINTS
ABOUT OVER INSURANCE BUT HAS
LED SOME TO WORRY ABOUT UNDER
INSURANCE DOCTOR DIXON CLIMATE
CHANGE ASSESSMENT CALCULATES
FOR THE FIRST TIME I'M AWARE A
SYSTEMATIC MEASUREMENT OF UNDER
INSURANCE AND WHETHER IT'S
PERVASIVE IN HIGH RISK AREAS IN
A STUDY CALCULATED THE COVERAGE
LEVELS BETWEEN NINETY THREE
PERCENT AND ONE HUNDRED FOUR
PERCENT OF HOME RECONSTRUCTION
COSTS AND IMPORTANTLY THAT
MEASURE DID NOT INCLUDE
EXTENDED REPLACEMENT COST
FEATURES WHICH ARE WIDELY
AVAILABLE IN THE MARKETPLACE
THOSE THOSE DATA HIGHLIGHT
ENSURE COMPLIANCE WITH THE
CALIFORNIA DEPARTMENT OF
INSURANCE REGULATIONS MANDATED
MANDATING THE REQUIRED ELEMENTS
OF REPLACEMENT COST ESTIMATES
WITH THE GOAL OF HELPING
CUSTOMERS SELECT APPROPRIATE
PROTECTION FOR THEIR PROPERTY
WELL THE CALIFORNIA INDUSTRY
INSURANCE INDUSTRIES WELL
CAPITALIZE THERE ARE TRENDS
FOR POLICY MAKERS TO MONITOR
REGARDING AFFORDABILITY
CALIFORNIA'S AVERAGE HOMEOWNERS
INSURANCE RATE IS JUST ABOVE
ARE JUST BELOW THE AVERAGE
IN THE COUNTRY WITH HURRICANE
PRONE STATES SUCH AS TEXAS
AND FLORIDA APPROXIMATELY
DOUBLE THE NATIONAL AVERAGE
THERE HAVE BEEN -- THERE'S
BEEN A SLOW RISE OF HOMEOWNERS
INSURANCE RATES IN HIGH RISK
AREAS HOWEVER INSURERS STILL
EXPRESSED CONCERNS ABOUT RATE
INADEQUACY AND THE HIGHEST RISK
AREAS REGARDING AVAILABILITY
ADMITTED IN MARKETING SURE IS
STILL SERVE HIGH RISK AREAS
BUT THERE HAS BEEN A SMALL
BUT STATISTICALLY SIGNIFICANT
DECREASE OF EIGHT PERCENT
AND THEIR PRESENCE IN THE
HIGHEST RISK AREAS WE BELIEVE
THIS DECREASE REFLECTS BOTH
ENSURE SOLVENCY CONCERNS --
WELL IN CHURCH RELATED BOTH
TO AVOIDING OVER CONCENTRATION
IN HIGH RISK AREAS AS WELL
AS GRADUALLY WITHDRAWING FROM
AREAS WHERE INSURERS ARE NOT
PERMITTED BY THE STATE TO
CHARGE ADEQUATE PRICES LOOKING
FORWARD WE ARE CONCERNED ABOUT
SEVERAL ISSUES IN CALIFORNIA
AS HOUSING HAS EXPANDED FURTHER
INTO THE FOREST CHAPARRAL AND
CRAFT GRASSLAND AREAS WERE
FIRES HAVE NOT BEEN PERMITTED
TO BURN THE RISK OF LOSS
HAS INCREASED CONSIDERABLY
ENSURE RATING PLANS HAVE
GENERALLY INVOLVED TO INCLUDE
SIGNIFICANT DISCOUNTS FOR FIRE
RESILIENT BUILDING MATERIALS
VERTICALLY FOR ROOFING
AND SIDING BUT CALIFORNIA
CALIFORNIA'S BUILDING CODE
NEWEST BUILDING CODE IS VERY
STRONG BUT THE TUBS FIRE
BURNED EVEN THE NEWEST HOMES
AT RATES EQUIVALENT TO OLDER
HOMES INSURERS DO ENCOURAGE
SITE SPECIFIC DEFENSIBLE
SPACE AS WELL AS COMMUNITY
WIDE MITIGATION BUT SUCH
WORTHWHILE EFFORTS TO NOT STOP
A MASSIVE FIRE EMBERS CAN LAND
FROM TWO OR THREE MILES AWAY
WE'RE HOPEFUL THAT SB NINE
NO ONE WILL ACT AS A FIRST
STEP TOWARD SIGNIFICANT FUEL
REDUCTION WHICH IS ABSOLUTELY
NECESSARY GIVEN ALL THE HOMES
INSURED AND -- WE WE AREA
BUT THERE'S CLEARLY MUCH MORE
NEEDED IN ORDER TO ASSURE
THAT INSURANCE WILL REMAIN
AVAILABLE AND AFFORDABLE AND
EVERY COMMUNITY THANK YOU
THANK YOU MISTER FRAZIER
APPRECIATE YOUR INSIGHT FROM
THE INSURERS POINT OF VIEW AND
I'M SURE THEY'LL BE SOME FOLLOW
UP QUESTIONS I WANT INVITE MY
COLLEAGUES ON THE PANEL TO ASK
QUESTIONS AND -- START WITH
SENATOR DODD AND SENATOR MORE
SO IN GIPSON FORGET MISTER
FRAZIER -- YOU AT THE TOP OF
YOUR -- PRESENTATION YOU TALKED
ABOUT -- COULD YOU REPEAT
THAT -- THESE FIRES WIPED OUT
PROFITS FROM IT WAS A SPECIFIC
YEARS DATING BACK TO TWO
THOUSAND AND ONE SIXTEEN YEARS
OF INSURER PROFITS HOMEOWNERS
LINE OF BUSINESS AND HOW DOES
THAT HAPPEN WHEN THERE'S --
ABSOLUTE LIABILITY M.
P. GENIE IS PICKING UP -- THE
COST WITH ABSOLUTE LIABILITY
I UNDERSTAND YOU SUBGRADE
SOMEWHERE IN THE NEIGHBORHOOD
OF SIXTY TO SIXTY FIVE PERCENT
BUT I JUST DON'T UNDERSTAND
HOW THAT WIPES OUT THE PROFITS
FROM ALL THOSE YEARS WE DON'T
HAVE ANY RECOVERY AT THIS
POINT FROM A UTILITY IS THIS
IS MONEY OUT THE DOOR AND
WE'LL SEE WHAT HAPPENS BUT WE
DON'T KNOW WHETHER YOU HAVE A
CRY ME A RIVER TYPE OF COMMENT
IF YOU WILL AND YOU KNOW THAT
YOU'VE GOT BACK TO THESE OTHER
THESE OTHER -- WILDFIRES --
THAT WE COULD BE CAUSED BY
UTILITIES A AND P.
GENIES PAYING THE COST OR
AT LEAST A SUBURB GATED COST
FROM WHAT YOU'VE TOLD ME THIS
SOMEWHERE NEIGHBORHOOD AND
SIXTY AND SIXTY FIVE PERCENT
WE DON'T WE DON'T KNOW WHO'S
RESPONSIBLE FOR THE TUBS FIRE
AND IN THE MEANTIME THAT'S
SURELY COMPANIES INSURANCE
COMPANIES SUGGEST THESE CLAIMS
SO I'M JUST REPORTING THE
CLAIMS EXPERIENCE THAT WE
HAVE THAT THAT SUBSEQUENTLY
REDUCED THAN THOSE NUMBERS
WILL CHANGE BUT THAT'S THE
NUMBER WE CURRENTLY HAVE I I
I I JUST WANTED TO ADD SOME
DAYLIGHT TO THAT THAT THAT'S
NOT NECESSARILY THE WAY IT'S
GOING TO BE AND STOP THE WAY
IT'S GONNA PASS WHERE THERE
HAS BEEN A UTILITY COSTS ARE
I I WOULD SPEND YEAH WHEN
THERE'S BEEN A UTILITY BECAUSE
FIRE I DO WANT TO EMPHASIZE
THOUGH THE UTILITY CAUSE
FIRES ARE THE VAST MINORITY
OF FIRES -- LESS GENERALLY
TEN PERCENT OR LESS OF FIRES
ARE RELATED TO UTILITIES --
INSURANCE COMPANIES PAY FOR
ALL THE FIRES AND IF A UTILITY
OR SOME OTHER THIRD PARTY
COSTA FIRE THEN THERE'S AN
OPPORTUNITY FOR SUBROGATION BUT
IT'S TYPICALLY NOT A UTILITY
FIRE WELL I RESPECT THAT
THAT WOULD BE THE SUBJECT OF
TODAY'S PRAYER AND OF COURSE
-- A HUNDRED PERCENT OF A MORE
-- UTILITY CAUSED FIRES I WE
HAVE NOT HEARD ABOUT THE TUBS
FIRE YEAH I RESPECT THAT BUT
-- -- IT'S CERTAINLY -- NOT
GOING TO BE ZERO A VEHICLE
FOR CERTAIN YEAH SO -- SO IT
IT SEEMS TO ME THAT -- WITH
WITH THOSE TYPE OF SUBROGATION
I'M JUST NOT SURE -- THAT
I I THINK THERE NEEDS TO BE
SOME SORT OF INVESTIGATION
IN TERMS OF HOW THOSE RATES
ARE ESTABLISHED PARTICULARLY
WHEN YOU ARE SEGREGATING --
YOU KNOW FROM BY THE UTILITY
COMPANIES WILL WE'RE SUBJECT
TO EXTENSIVE I STATE REGULATION
BY THE DEPARTMENT OF INSURANCE
ON RATES AND NO INSURANCE
COMPANY IS PERMITTED TO EITHER
INCREASE OR DECREASE ITS RATES
WITHOUT PRIOR APPROVAL OF THE
DEPARTMENT OF INSURANCE SO
IT'S NOT AS IF AN INSURANCE
COMPANY JUST MAKES THIS UP
THEY HAVE EXTENSIVE DIALOGUE
AND MUST PROVE A TREMENDOUS
AMOUNT TO THE DEPARTMENT OF
INSURANCE AND THAT IS IN THE
BEST CASE SCENARIO THREE OR
FOUR MONTHS AND THERE'S IT'S
NOT UNCOMMON FOR A RATE FILING
TO EXCEED A YEAR SO IT'S YOU
KNOW RATES ARE NOT ESTABLISHED
CASUALLY AND BELIEVE ME THE
DEPARTMENT OF INSURANCE STAFF
THEY'RE EXTREMELY EXPERIENCED
I'D WORKED THERE WORKED WITH
THEM FOR SIX YEARS -- THEY
KNOW THIS -- THEY KNOW THIS
RATING STRUCTURE -- QUITE
EXPERTLY AND ADDED AND IN MY
VIEW DO ADEQUATELY SAFEGUARD
CONSUMER INTERESTS THANK
YOU UP OF OF ALL OF THIS
CHAIR YEAH SURE CHAIRS --
WHAT WHAT ONE OF MY
EXPERIENCES IN TRYING TO GET
TOUGH LEGISLATION THROUGH
-- THIS YEAR AFTER THE --
THE WILDFIRES I DO -- WANT
TO THANK THE CHAIRS AND
-- YOU KNOW FOR THEIR --
PUTTING UP WITH -- ME AND
AND AND AND OTHERS -- BECAUSE
IT WAS TOUGH TIME FOR THE
REST OF THE PANEL AND I
THINK ALSO FOR FOR MISTER
FRAZIER FOR ME IT SEEMS LIKE
WITH ALL THE EVIDENCE
POINTING TO THINGS THAT --
THAT NEED TO HAPPEN LIKE --
THE INSURANCE COMPANIES FOR
EXAMPLE VOLUNTARILY CAME
UP WITH SEVENTY PERCENT OF
CONTENTS WITHOUT INVENTORY
VOLUNTARILY MOST OF BUT YEAH
WHEN WE TRIED TO GET MORE --
FOR OUR CONSTITUENTS EITHER
PAST OR FUTURE -- THERE WAS
NO OFFER EVEN CLOSE TO THAT
EVEN WHEN IT WAS A WILD
FIRE -- NATURAL DISASTER
GOVERNOR DECLARED DISASTER
WE HAD SOME OTHER -- --
LEGISLATION WHICH I WON'T GO
INTO BUT IT SEEMS TO BE AN
INSURANCE COMMITTEE MEMBERS
-- THEY'RE HERE THIS IS
NOT THAT WELL I GUESS AND
IT'S JUST AN OBSERVATION
USED WE SIT THERE ON THE DIET
SAYS COMMITTEE MEMBERS IN THE
INSURANCE INDUSTRY COMES OUT
AND SAYS OVER IF YOU DO THIS
THEN YOUR RATES EVERYBODY'S
RATES IN THE ENTIRE STATE OF
CALIFORNIA'S GOING TO GO OUT
OKAY NOBODY WANTS THAT I THINK
THAT'S -- THAT'S A CONDITION
THAT -- WERE ALL CONCERNED
ABOUT WHETHER IT'S -- PGD --
POWER RATES OR WHETHER IT'S
INSURANCE RATES OR ANY THE TYPE
OF THINGS THAT -- WE REGULATE
BUT THEN THERE'S ALSO NOT ONLY
-- WILL THE RATES GO UP FOR
EVERYBODY BUT WE JUST MIGHT
MOVE OUT OF THE CALIFORNIA
MARKET AND WE'RE JUST NOT
COULD ENSURE THEIR OR WILL
PULL OUT OF THE WILDLAND
FIRE AND WILL STAY IN OTHER
AREAS BUT NOT DOING I GUESS
TO THE TO THE TO THE PANEL
HOW DO WE AS LEGISLATORS
OR HOW DO COMMITTEE MEMBERS
PARTICULARLY WHEN WE HAVE THE
DEPARTMENT OF INSURANCE OPINING
I WANT TO USE BE -- SO I CAN
I THE I GUESS I CAN DO THAT
THE TO I DON'T THINK THEY USE
THOSE WORDS BUT IN IN ESSENCE
THERE SAY NO THAT'S NOT CORRECT
YOU LOOK AT THE NUMERATOR
IS LIKE FIVE THOUSAND THE
DENOMINATORS TWELVE MILLION
POLICY HOLDERS THAT IS NOT
CORRECT AND THEN WE HAVE YOUR
OTHERS THAT COME IN A WAY IT
ON BOTH SIDES THEN THE -- I I
GUESS WHAT I'M LOOKING FOR IS
SOME DIRECTION FOR COMMITTEE
MEMBERS THAT SERVE ON THE
INSURANCE COMMITTEE WHAT ARE
OTHER FACTORS TO MITIGATE THESE
TYPE OF THINGS TO GET IMPORTANT
LEGISLATIVE SOLUTION THROUGH
TO HELP OUR CONSTITUENTS THIS
IS ALL WE ARE TRYING TO DO FOR
THE VERY VERY BEGINNING A HAD
-- -- TO TO TO ME WAS VERY VERY
DISAPPOINTING BUT I CERTAINLY
RESPECT MY COLLEAGUES AT SERVE
ON THE INSURANCE COMMITTEE
BECAUSE THAT IS NOT AN OUTCOME
IT'S ACCEPTABLE FOR FORTY
MILLION CALIFORNIANS OR TWELVE
MILLION POLICY HOLDERS SO I'D
LIKE TO -- DIRECTION -- FROM
THE OTHER ELEMENT PANELS THIS
BLOCK YOU WANNA BEGIN THANK
YOU YES -- -- SO THIS DOES KIND
OF DRAW DOWN THERE'S JUSTICES
FINITE NUMBER OF AREAS WHERE
VOLUNTARY AND ENHANCEMENTS OF
FROM REX'S CLIENTS FROM FROM
THE CARES MAKE A HUGE AMOUNT
OF DIFFERENCE AND I HAVE THE
SAME FRUSTRATION THAT YOU HAVE
IN TERMS OF WELL YOU KNOW THE
THAT THIS WE HEARD OKAY SIX
PERCENT OF CLAIMS PAID A POLICY
LIMIT WE HAVE A VERY SMALL
SUBSET OKAY OF OF THE OF THE
INSURERS CLIENTS THAT WE ARE
TRYING TO HELP RIGHT THERE'S A
VERY SMALL UNIVERSE OF PEOPLE
WHO NEED EVERY DOLLAR AVAILABLE
UNDER THEIR POLICY IN ORDER
TO GET BACK ON THEIR FEET OKAY
SO WE'RE REALLY ARE HERE TO
FOCUS ON THOSE PEOPLE RIGHT SO
WE HAVE THE FACT THAT A LOT OF
PEOPLE TWO THIRDS OF THE PEOPLE
DON'T HAVE ENOUGH COVERAGE
OVERALL THAT'S THAT'S A WE HAVE
A REAL SERIOUS MARKET PLACE
PROBLEM OKAY -- THERE THEN WE
HAVE THE THE PROOF REQUIREMENTS
WE KNOW THAT A NUMBER OF
INSURERS DID IN FACT STEP
UP VOLUNTARILY AND SO THERE
TO DO SEVENTY AND SOME DID A
HUNDRED -- PAY OUT ON CONTENTS
WITHOUT ITEMS ATION BUT SAME
FRUSTRATION I HAD BUT THEN
YOU SAY WELL WHY CAN'T WE JUST
MAKE THAT A LAW NO NO NO NO
NO AND THEN WE HAVE THIS WHOLE
ARGUMENT ABOUT THAT I I CAN'T
GET AWAY FROM THE LOGIC BECAUSE
SO MANY OF THE THOUSANDS OF
FIRE SURVIVORS I'VE WORKED WITH
SEE IT THE SAME WAY I SEE IT
WHICH IS IF I PAID A PREMIUM
FOR TWO HUNDRED AND EIGHTY
THOUSAND DOLLARS AND CONTENTS
COVERAGE AND EVERYTHING I HAVE
IS GONE WHY AREN'T I GETTING
A CHECK FOR TWO HUNDRED EIGHTY
THOUSAND SO I DO THINK WE NEED
JUST TO REALLY HAVE A SIT DOWN
AND NOT WITH A LOT OF YOU KNOW
NOT NEW GET A LOVE THE MEDIA
BUT MAYBE YOU KNOW CLOSE THE
DOOR LITTLE MORE FREE TALKING
-- TO GET SOME OF THE INSURANCE
EXECUTIVES TO SAY WHAT THEY
CAN DO BECAUSE OF COURSE YOU
KNOW WHEN WE HAD STEVE BOYS
NEGOTIATED THE VOLUNTARY CLAIMS
ARE FORMS -- DAVE JONES HAS
HAS -- KEPT THOSE IN PLACE
AFTER EVERY DISASTER SO WE KNOW
THAT THE CARRIERS CAN DO SOME
THINGS TO MAKE OF THEIR THEIR
CUSTOMERS -- LIVES BETTER BUT
ALSO TO TO DO WHAT WE ALL WANT
THEM TO DO WHICH IS PAY AS MUCH
AS YOU CAN AS QUICKLY AS YOU
CAN SO PEOPLE ARE IN A POSITION
TO MAKE DECISIONS AND YOU DON'T
HAVE THIS WHOLE RIPPLE EFFECT
OF WHY KEITH WOODS AND I ARE
CONSTANTLY ON PANELS TOGETHER
TRYING TO FIGURE OUT YOU KNOW
WHY DO WE ONLY HAVE THIRTY
TWO HOMES AND YOU KNOW REBUILT
AND IT'S BEEN OVER A YEAR SO
THERE'S THERE'S THE THERE ARE
SOME LOW HANGING FRUIT I THINK
WITH THE WITH THE THE TAKING OF
EXPANDING THE VOLUNTARY CLOSER
FORMS YEAH WE COULDN'T GET IT
THROUGH AN LEGISLATION BUT WE
KNOW WE'VE GOT A BIG RUNNING
START HERE I'M YOU KNOW AND
AND AND AGAIN I MEAN -- THE
FOR THE FACT THAT THE INSURERS
THAT REX IS SAYING THAT THERE
ARE I THOUGHT I HEARD YOU SAY
INVESTMENT INCOME IS SUPPOSED
TO PROFITS WERE WIPED OUT BUT
REGARDLESS IF IF IN FACT YOU
KNOW YEAH THIS WAS THIS WAS
THIS WAS AN EXPENSIVE OBVIOUSLY
FIRE OF BUT AGAIN YOU HAVE
TO LOOK AT IN THE CONTEXT OF
THEIR BROADER THEY OF THEIR
BROADER CUSTOMER BASE THIS IS
STILL A VERY SMALL PERCENTAGE
OF THEIR CUSTOMERS SO I THINK
YOU KNOW AGAIN WILDFIRE TOTAL
LOSSES ARE DIFFERENT THEY NEED
TO BE TREATED TO THEY NEED
TO BE ADJUSTED DIFFERENTLY
ALL THIS THIS DEPRECIATION
AND A WHOLE BOX OF ACTUAL
CASH VALUE I UNDERSTAND WHY
INSURERS DO THAT IN THE DAY TO
DAY CLAIMS BUT IN A SITUATION
LIKE THIS IS JUST CRUEL
SO I KNOW WE CAN DO BETTER
-- WELL I THINK THE CHALLENGE
FOR FOR FOR YOUR CHURCH
CARRIERS TRY TO PREDICT LOSSES
RIGHT THEY'VE GOT TEAMS OF
ACTUARIES TO TRY TO FIGURE THIS
STUFF OUT THE MODELS ARE ALL
BLOWN TO HELL I MEAN NOBODY
THOUGHT COPY PARK WITH BURKE
COPY PARK IS NOT A WILD FIRES
ON SO THAT THE I THINK THE WAY
THAT THE INSURANCE CARRIERS
HAVE LOOKED AT THESE MODELING'S
AND TRY TO PRICE THEIR BUSINESS
-- YOU KNOW SOME OF THAT STUFF
GOING OUT THE WINDOW MORE HAVE
AND -- HURRICANES GO PLACES
THEY HAVEN'T GONE WE'RE HAVING
TORNADOES IN PLACES THEY
HAVEN'T GONE SO -- YOU KNOW
THE THE THE THE FORTUNATE THING
FOR FOR THIS TERRIBLE EVENT
THAT WE HAD IS THAT IT WOULD
BECAUSE IT WAS A FIRE YOU KNOW
IT WAS LARGELY AN INSURED EVENT
IT WASN'T LIKE AN EARTHQUAKE
OR A FLOOD WHERE WERE THOSE
THINGS AREN'T INSURED BUT BUT
I DON'T KNOW THAT THE INSURANCE
CARRIERS HAVE A WAY TO -- PRICE
POLICIES -- WITH WITH MODELS --
BECAUSE THE MODELS ARE HOLDING
UP THE WAY THAT THEY HAVE SO
-- I DON'T I DON'T HAVE HOW
THEY DO THAT BUT IT BUT IT IS
IT IS IT IS A DIFFICULT THING
FOR THEM TO DO WHEN YOU HAVE
A COPY PART BURKE FOR EXAMPLE
YEAH I THAT THAT MY ANGLE ON
THAT LOOKING AT THAT IS --
THE AVAILABILITY OF INSURANCE
IN THE IN THE HIGH WILD FIRST
WILDFIRE RISK AREAS AND SIR
WHAT WE FOUND WAS THAT THE
ADMITTED MARKET IS -- YOU
KNOW TENDING TO IS NERVOUS
ABOUT THOSE AREAS THAT THE
MARKET SHARE OF THE SURPLUS
LINES CARRIERS INCREASING THE
MARKET SHARE THE FAIR PLAN IS
INCREASING IN THOSE HIGH RISK
AREAS AND INSURERS -- YOU KNOW
WHETHER THEY POINT TO WELL THEY
POINT TO THAT WERE NOT ABLE TO
CHARGE THE THE THE RATE THAT WE
NEED TO STAY IN THOSE AREAS --
THAT THAT'S -- THAT'S ONE THING
YOU HERE AND THEN THERE'S ALSO
SOME OTHER ISSUES REGARDING
REINSURANCE AND OTHER THINGS A
BRING UP BUT YOU KNOW AS FAR AS
MAKING THE MARKET FUNCTION WELL
YOU KNOW I THINK THERE ARE SOME
INDICATORS THAT -- YOU KNOW
WE GOT ISSUES AND I WITH THIS
THE HIGH WILD FOR RISK AREAS
THAT WE WE NEED TO BE THINKING
ABOUT MOVING FORWARD YES TO THE
INSURANCE INDUSTRY RESPONSE I'M
I'M NOT AWARE THAT THE GENERAL
INSURANCE INDUSTRY LINE WAS YOU
BETTER DO WHAT WE WANT OR WE'RE
GOING TO EXTORT YOU AND LEAVE
YOUR COMMUNITIES I JUST I DON'T
BELIEVE THAT'S WHAT WE SAID
THIS YEAR AND I DON'T BELIEVE
THAT'S WHAT WE'RE SAYING MOVING
FORWARD WHAT I TRIED TO POINT
OUT IS THAT THERE ARE SOME
CRACKS IN THE SYSTEM IN THE
HIGHEST RISK AREAS THAT'S WHAT
DOCTOR DIXON'S RESEARCH SHOWED
BUT THE ADMITTED MARKET IS
STILL SERVING EVERY COMMUNITY
BUT THERE'S A PUSH AND PULL
EVERY TIME THAT LET'S SAY AMY
SAYS WELL JUST PAY COVERAGE
LIMITS WITHOUT LOOKING AT
ACTUAL LOSS OKAY RATES ARE
BASED UPON HISTORICAL LOSSES
AND THAT'S BUT THE NOTION THAT
WE JUST WOULD REQUIRE PAYMENT
AT POLICY LIMITS WITHOUT A
DOCUMENT TO THE BOSS THAT'S
CLEARLY GOING TO INCREASE
CLAIMS PAY OUT OKAY AS A PUBLIC
POLICY YOU MIGHT DECIDE YOU
WANT TO DO THAT THEN WILL YOU
ALSO BE ADVOCATING WITH US AT
THE DEPARTMENT OF INSURANCE
TO HELP US GET IT INCREASED
RATES SO THAT WE'RE ABLE TO
PAY FOR THOSE LOSSES I DOUBT
IT SO THERE'S ALWAYS PRESSURE
ON INSURANCE COMPANIES YOU MUST
SAY YES TO EVERY APPLICATION
YOU MUST RENEW EVERYONE BUT
WE'RE NOT GONNA LET YOU CHARGE
ADEQUATE RATES FOR THE BUSINESS
YOU'RE GOING TO DO AND BY THE
WAY ASK FEWER QUESTIONS WHEN
YOU'RE PAYING CLAIMS AND MAKE
SURE YOU'RE MORE GENEROUS
THOSE ALL TOGETHER MAKE IT
DIFFICULT TO DO BUSINESS IN
EVERY COMMUNITY SO WE'RE TRYING
OUR BEST TO FIGURE OUT HOW
TO SERVE IN EVERY COMMUNITY
BECAUSE INSURANCE AGENTS ARE
IN EVERY COMMUNITY THERE ON
EVERY LITTLE LEAGUE FENCE JUST
LIKE EVERYONE ELSE WHO WHO
TALKED WITH LOCAL KNOWLEDGE
INSURANCE PROFESSIONALS ARE
THERE AS WELL CALIFORNIA'S AN
INCREDIBLY DIFFICULT PLACE TO
DO BUSINESS BUT YET OUR RATES
HERE IN CALIFORNIA ARE BELOW
THE NATIONAL AVERAGE THEIR
HALF OF WHAT THE AVERAGE IS IN
TEXAS AND IN FLORIDA SO IT'S
NOT AS IF INSURANCE COMPANIES
ARE SAYING WE NEED CRAZY
RATES AND IF YOU DON'T DO IT
BAD THINGS ARE GONNA HAPPEN
BUT WE DID NEGOTIATE WITH THE
LEGISLATURE ELEVEN BILLS TO
COMPLETION THIS YEAR IN EACH
ONE ADDED INCREMENTAL COSTS TO
THE COST OF DOING BUSINESS IN
CALIFORNIA AND WE'RE GONNA HAVE
TO RECOVER THOSE IN RATES AS
WELL SO IT'S NOT AS IF WE JUST
SAT BACK AND SAID NO WE WORKED
TRULY HARD FOR SEVEN MONTHS
TRYING TO FIGURE OUT THE BEST
COMPROMISE SO THAT WE COULD
BE GOOD PARTICIPANTS IN THE
CALIFORNIA BUSINESS COMMUNITY
AND ALL COMMUNITIES FOR THAT
MATTER -- AND THAT'S WHAT WE
WANT WE'RE HERE TO PROBLEM
SOLVE WITH YOU AND ACKNOWLEDGE
IF WE HAVE PROBLEMS WE WANT
TO HEAR ABOUT IT AND WE WANT
TO WORK WITH YOU TO ADDRESS
THEM WE'RE NOT AFRAID TO TO
TO TO BE TOLD WE SHOULD DO
BETTER WERE OPEN FOR THAT BUT
THE NOTION THAT THERE'S JUST
A SOME SORT OF MASS PROBLEM
THERE SO MANY SO MANY CUSTOMERS
WHO DON'T COME TO AMY'S
COMMUNITY FORMS BECAUSE THEY
DON'T HAVE PROBLEMS THERE'S
SO MANY PEOPLE PEOPLE WHO HAVE
WONDERFUL CLAIMS EXPERIENCES
BUT THEY'RE NOT THE ONES WHO
ARE GOING TO COME AND FILL OUT
A SURVEY ASKING IF YOU HAVE
A PROBLEM OKAY I WENT OUT WE
HAVE OF MEMBERS WHO HAVE MORE
QUESTIONS TO BE ASKED IN OUR
TIME IS RUNNING A LITTLE SHORT
AS SENATOR MORE LOCK ASSEMBLY
MEMBER GIPSON CENTER LARA
ASSEMBLY MEMBER GRACE THANK
YOU MISTER CHAIR MISTER DER
AND MR DICTION YOU BROUGHT UP
THE CONSUMER CHOICE ASPECT OF
THIS WHOLE PROCESS AND SO WHEN
A CONSUMER WANTS TO PROTECT
AN ASSET LIKE A CAR THEY CAN
BUY LIABILITY INSURANCE SO
THEY CAN GET FULL COVERAGE
THAT THEY MAKE CHOICES RIGHT
CORRECT SO -- WHEN IT COMES
TO UP PURCHASING A HOME YOU
WANT TO PROTECT ITS A MAJOR
INVESTMENT BUT YOU WANT TO
PROTECT IT ALSO FOR COLLATERAL
PURPOSES BECAUSE YOU BORROWED
A SIGNIFICANT AMOUNT OF MONEY
FROM A LENDER THE PIPE THAT
HOME AND I'M I DON'T HAVE THE
MORTGAGE INDUSTRY AT THE TABLE
BUT ARE THE A MAJOR FORCE IN
SAYING YOU'VE GOT OF ME YOU'RE
MANDATED TO BUY THIS INSURANCE
YEAH I MEAN AND AND THAT'S
PART OF THE EDUCATION THAT WE
HAVE TO DO WITH OUR CLIENTS
TO ME OFTENTIMES WE WE GET A
-- INFORMATION FROM A CLIENT
SAYING I'M BUYING THIS HOUSE
HERE'S WHAT IT'S GOING TO COST
MY LOAN IS -- FIVE HUNDRED AND
THIRTY THREE THOUSAND DOLLARS
-- DOUBT THAT HOUSE MIGHT BE
WORTH EIGHT HUNDRED THOUSAND OR
MY COST EIGHT HUNDRED THOUSAND
DOLLARS TO REPLACE ITSELF SO
THAT'S WHERE -- YOU KNOW THE
CONSUMERS DON'T NECESSARILY
ALWAYS THINK I NEED TO ENSURE
FOR THE SCENARIO I'VE USUALLY
TO ENSURE FOR OLD WILL MY
LOAN IS BUT -- YOU KNOW AGAIN
IF THAT HOUSE BURNS -- IF
EVERYTHING IN THAT THAT HOUSE
BURNS ON WHAT IS IT GONNA
TAKE TO TO -- TO REBUILD IT
THAT'S THAT'S THE EDUCATION
PROCESS THAT WE HAVE TO DO
WITH THE CLIENTS AND HELP
THEM UNDERSTAND AND IN HEALTH
HAVE THEM HELP US UNDERSTAND
WHAT THEIR TOTAL LOSS SCENARIO
WOULD LOOK LIKE SO THAT THEY
CAN GET OUT WE CAN PROVIDE
ADEQUATE COVERAGE FOR THAT
SO THE VICE MAYOR POINTED OUT
THAT WE CAN EXPECT THE NUMBER
OF LOTS BEING SOLD IS THAT
BECAUSE OF BANK TRANSACTIONS
WHERE THEY JUST FINALLY SAID I
CAN'T MAKE THE MONTHLY PAYMENT
I GOTTA JUST CUT ARM WHAT
WE'RE SEE WE'RE SEEING A LOT
OF THE THE THE LENDERS KEEPING
THEIR RELATIONSHIP WITH THEIR
I MEAN THEY'RE THEY'RE THEY'RE
BORROWERS I MEAN IN A PERFECT
WORLD THE LENDER STICKS WITH
THEM INSURANCE COMPANY STICKS
WITH THEM THROUGH THAT REBUILD
PROCESS THE INSURANCE OR IS THE
NEW HOUSE THE THE THE LENDER
HAS THE SAME LOAN OR WORKED
WITH THEM ON A CONSTRUCTION
LOAN THAT THAT'S IN A PERFECT
WORLD BUT MOST OF THE LOTS THAT
WE SEE GOING UP FOR SALE ARE
PEOPLE THAT HAVE -- EITHER JUST
MOVED OUT OF THE AREA OR SIMPLY
BOUGHT ANOTHER HOUSE AND AND
THEY'RE YOU KNOW THEY WERE ON
THE FENCE IF THEY WERE GONNA
REBUILD OR NOT BUT THEY'VE
DECIDED TO DO STUFF WITH A
LOT ON THE MARKET AND SELL THE
CASE SO I JUST LOOK AT MORTGAGE
COMPANIES AS A FORCE THAT ISN'T
RESIDENT THE ROOM ARE THERE ANY
OTHER FORCES THAT ARE DICTATING
WHAT PURCHASE WHAT A PURCHASER
SHOULD BE LOOKING AT FOR THE
AMOUNT OF COVERAGE THERE ARE
I'M NOT REALLY IN IT I THINK
IT'S IMPORTANT TO POINT OUT TO
THE MORTGAGE COMPANY ONLY WANT
TO PROTECT THEIR THEIR LOAN
VALUE THEY DON'T CARE FOR THE
THE HOMEOWNERS AND MAY HOLE IN
A IN A LOSS SITUATION AS LONG
AS THEIR LOAN IS PROTECTED SO
I BELIEVE THAT SOME THOUGH WILL
REQUIRE THAT THE POLICY BE A
REPLACEMENT VALUE POLICY NUMBER
IN A CD I HAVE SEEN THAT NEW ON
IN A MORE LOCK IT I'M JUST
WANNA MAKE SURE THAT THE WE'VE
GOT SOME FORCE SOMEBODY SALAS
THE BY A CERTAIN AMOUNT AND
THEN WE CAN GO FROM A YOU GO TO
A CADILLAC OUR CHOICE CORRECT
I MEAN AND THEN YOU KNOW THEN
THAT A ROUGHLY A THIRD OF HOMES
DON'T HAVE MORTGAGES SO YOU
KNOW INDIA THAN THAT YOU DON'T
HAVE THAT PRESSURE IN THAT
CASE MADE AND WE ARE SEEING A
MY ORGANIZATION IS DEFINITELY
SEEN AN INCREASE IN THE NUMBER
OF DISASTER VICTIMS WHO HAVE
NO INSURANCE IN THE LAST FEW
YEARS BUT I I MEAN AND IF IF I
CAN TAKE ONE MINUTE -- I AM NOT
HERE DENIES YOUR CLIENTS I'M
FACT AND I WANT YOUR CLIENTS
TO THRIVE AND AND BE HEALTHY
-- I THINK CERTAINLY OBVIOUSLY
THERE ARE MANY PEOPLE WHO HAVE
COME OUT FINE -- BUT WE'RE HERE
TO SOLVE THE PROBLEMS OF THE
PEOPLE WHO DIDN'T COME OUT FINE
AND HAVE BEEN COMING TO ELECTED
OFFICIALS FOR HELP -- AND I
YOU KNOW OUR ORGANIZATION FROM
DAY ONE HAS BEEN TELLING PEOPLE
DON'T BE PENNY WISE AND POUND
FOOLISH WHEN YOU'RE INSURING
YOUR BIGGEST ASSET THE PROBLEM
IS AND AND AND YOU KNOW WE HAVE
BEEN FULLY ANTICIPATING THAT
RATES ARE GOING TO ARE GOING
TO BE GOING UP GIVEN CLIMATE
CHANGE IT'S IT'S PRETTY OBVIOUS
IT'S WE WORK IN OTHER STATES
WHERE THERE ARE HURRICANE SO
WE'VE SEEN IT -- AND AND YOU
KNOW YES THE CALIFORNIA MARKET
IS STILL A HEALTHY WE WANT TO
KEEP IT HEALTHY BUT I THINK
YOU KNOW WHAT THE THE THE CAR
COMPETITION BETWEEN INSURERS
FOR CLIENTS IS PART OF WHAT'S
FUELING THIS UNDER INSURANCE
PROBLEM IS THAT YOU KNOW YOU
YOU KNOW I'D HAVE HAD A LOT
OF INSURANCE EXACTS POINT THE
FINGERS AT A COMPETITORS THEY
WILL THEY THEY LOW BALLED THE
ESTIMATE SO I GOT A LOW BALL
THE ESTIMATE IF I WANT TO
KEEP IF I WANT TO YOU KNOW GET
THAT CLIENT AND YEAH YOU KNOW
I AND I DON'T KNOW VERY MANY
CONSUMERS ARE SUPER KEEN TO
PAY ANYMORE FOR INSURANCE AND
THE ABSOLUTE FEEL LIKE THEY
HAVE TO BUT THE REALITY IS
THAT THAT THAT YOU KNOW YOU YOU
YOU JUST HAVE AN EXPECTATION
IN THE PUBLIC'S MIND THAT THE
INSURANCE PROFESSIONALS KNOW
THEIR JOB AND THEY'RE GONNA
TALENT SO EVERY SINGLE ONE OF
THESE PEOPLE THAT HAVE BEEN
COMING TO OUR OVERFLOW YOU KNOW
THREE HUNDRED OF OF PEOPLE AT
A SHOT WORKSHOPS ALMOST EVERY
ONE OF THE MOST WILL TELL
YOU AND THEY WILL TAKE A LIE
DETECTOR TEST AND TELL YOU
THIS YOU KNOW I ASKED IF I HAD
FULL COVERAGE AND I WAS TOLD
MY COVERAGE WAS ADEQUATE AND
I'VE SEEN THE COMMUNICATION
BETWEEN THE CONSUMERS AND
THEIR INSURANCE COMPANIES AND
AGENTS AND THEY WERE LULLED
INTO A FALSE SENSE OF SECURITY
AND WE JUST HAVE TO BREAK OKAY
ANOTHER MISTER FRAZIER QUICK
RESPONSE THAT YEAH BUT THAT'S
THE I CAN'T LET THAT STAND
WHEN MY ON WHEN IF INDEED
AN AGENT WOULD SAY I'M
GUARANTEEING THE ADEQUACY
OF COVERAGE THE POLICY IS
CONVERTED TO A GUARANTEED
REPLACEMENT COST POLICY BY
VIRTUE OF THAT REPRESENTATION
SO THE NOTION THAT SOMEONE
WOULD BE LULLED INTO A
FALSE SENSE OF SECURITY BY
MISREPRESENTATION AND HAVE
NO RECOURSE THAT'S SIMPLY NOT
THE LAW IN CALIFORNIA YOU HAVE
RECOURSE IN THAT COMPANY IS
GOING TO PAY THAT CLAIM NOW
WHAT I SEE HAPPEN IS YOU KNOW
THE DEPARTMENT OF INSURANCE
WILL EXAMINE SITUATIONS WHERE
-- COMPANY A WOULD GIVE A
REPLACEMENT COST ESTIMATE OF A
CERTAIN AMOUNT AND -- THERE'S
THERE'S NO DOUBT WHAT THEY'RE
CALCULATING AS THEIR ESTIMATE
BUT LET'S SAY IT'S LOWER THAN
COMPANY BE COMING ALONG AND
SAYING WELL -- THAT YOU REALLY
NEED TO GO HIGHER IN YOUR
COVERAGE AND THE DEPARTMENT
OF INSURANCE AS LONG AS THE
THE -- THE COMPANY HAS BEEN
FORTHRIGHT IN SAYING THIS IS
WHAT WE CALCULATE YOUR ESTIMATE
ADS -- IF OFTENTIMES IF AN
AGENT IF THE SECOND AGENT CAN'T
COME ALONG AND SAY NO NO THAT'S
NOT ENOUGH YOU REALLY NEED
TO PAY MORE AND GET THIS --
THEN THE LAW DOES NOT PREVENT
THE PERSON FROM CHOOSING THE
LOWER AMOUNT OF COVERAGE AS
LONG AS THERE'S BEEN ADEQUATE
DISCLOSURE BECAUSE IN THE END
IT'S THE CUSTOMER'S CHOICE
AS TO HOW MUCH INSURANCE THEY
WANT TO PURCHASE IT'S AN SO
THERE IS NO LAW THAT SAYS --
AN INSURANCE AGENT FOR INSTANCE
HAS A FIDUCIARY DUTY TO PUT
THE CUSTOMER'S INTERESTS FIRST
IN SUCH A WAY THAT THEY'RE
RESPONSIBLE FOR ANYTHING THAT
GOES WRONG AFTERWARD THAT'S
SIMPLY NOT THE LAW OKAY VERY
GOOD SO WHAT AT CENTER YOU
VERY GOOD I HAVE ASSEMBLY
MEMBER GIPSON THANK YOU VERY
MUCH OF MY MOTHER ALWAYS SAID
RATHER HAVE INSURANCE THE NOT
NEEDED THEY NEEDED NOT HAVE IT
AND SO MY QUESTION IS IS WHAT
IS THE LIKELIHOOD INSURANCE
COMPANIES WILL STOP WRITING AND
RENEWING HOMEOWNERS POLICIES
IN AREAS OF HIGH FIRE RISK
MOVING FORWARD SO THAT'S MY
QUESTION AND THAT'S SOME OF
THE CONCERNS IN WHICH -- --
PEOPLE HAVE CONVEYED MESSAGES
TO ME THAT'S MY FIRST QUESTION
SURE -- ASSEMBLY MEMBER
GIPSON -- OUR OUR HOPE IS
THAT THE MARKET WILL ATTRACT
NEW ENTRANCE AND MAKE SURE
THAT YOU KNOW THERE ARE SOME
COMPANIES WHO THEY LOOK AT A
COMMUNITY AND FEEL OVER EXPOSED
IN BECAUSE IT GEOGRAPHIC OVER
OVER CONCENTRATION THEY START
EXPRESSING RETICENCE TO ACCEPT
A RAMP EVERY APPLICATION AND
THE HOPE IS THAT THE MARKET IS
HEALTHY ENOUGH TO ATTRACT NEW
ENTRANTS INTO THE MARKETPLACE
AND IN FACT DOCTOR DIXON STUDY
SHOWS THAT IN THE VERY HIGHEST
RISK ZIP CODES THERE IS A
HIGHER THAN AVERAGE NUMBER OF
CARRIERS COMPETING IN THOSE
AREAS SO -- MY HOPE IS THAT THE
MARKET WILL STAY HEALTHY BUT --
WHAT WE ADVOCATED ALL YEAR WAS
LET'S NOT CREATE A CRISIS THAT
DOESN'T EXIST WITH LEGISLATION
THAT -- THAT TRIGGERS PROBLEMS
AND SO WE FEEL LIKE WE ARE
ABLE TO REACH ACCOMMODATIONS
ON THOSE ELEVEN BILLS THAT
MAXIMIZE THE LIKELIHOOD OF
COMPANIES STAYING IN THE
HIGHEST RISK -- ZIP CODES BUT
OBVIOUSLY I CAN'T PROVIDE ANY
GUARANTEES FOR ANY SPECIFIC
COMPANIES ONE OF THE FOLLOW UP
QUESTION HIS UP I'LL JUST ADD
REAL QUICK ON THAT -- WE SEE
CERTAIN KERRY'S I MEAN IN MY
IN MY COMPANY WE'VE GOT A ABOUT
A THOUSAND -- RE INSPECTIONS
THAT ARE BEING TRIGGERED BY A
WILDFIRE OR BRUSH CONCERNS BY
INSURANCE COMPANIES ARE SOME
OF THOSE WERE WERE THE CLIENTS
ARE ABLE TO MITIGATE IT SOME
THEY'RE NOT BUT -- AS SOME
OF THOSE CLIENTS OR CARRIERS
ARE WANTING TO LESSEN THEIR
EXPOSURE IN CERTAIN WILDFIRES
WE WE STILL ARE SEEN NEW
CARRIERS THAT ARE COMING IN THE
WRITING SO -- WE'RE NOT SEEN A
OF A PROBLEM WITH CAPACITY ON
THAT ISSUE THREE THREE QUICKIES
ONE -- -- THE ONE GOOD THING AB
TWENTY TWO TWO TWO NINE -- THAT
REQUIRES INSURERS TO DISCLOSE
DISCOUNTS IS IS A GOOD STEP IN
THE RIGHT DIRECTION -- BEFORE
LAST YEAR'S FIRE SEASON I DID
A RIDE ALONG IN MORAGA I'M YOUR
DISTRICT WITH THE FIRE MARSHALL
TO A HOME WHERE THE WHERE ALL
SEATED SAID IF YOU DON'T YOU'LL
GET MAKE THIS THE LAST RUSH
HEAVY AROUND YOUR HOUSE WE'RE
GOING TO DROP YOU SO THERE'S A
LOT WE CAN DO WITH MITIGATION
-- AND AND THE LAST POINT --
BUT BUT WE DIDN'T WE COULDN'T
GET A LOT OF COOPERATION
FROM YOUR TEAM ARM ON THE
LEGISLATIVE KIND OF STANDARD
SO WE DON'T REALLY HAVE THAT AT
ALL -- TERMS OF YOU KNOW WHAT
WHAT KIND OF INCENTIVES COULD
HOMEOWNERS GET TO MAKE THEIR
HOMES LESS LIKELY TO BURN THAT
KIND OF THING -- LAST FALL AND
THERE IS AN INSURANCE FINDER
TOOL THAT OUR ORGANIZATION
HAS PIONEERED SO YOUR CALL
YOUR CONSTITUENTS NEED NOT
PANIC AND BECAUSE THERE ARE
DEFINITELY LOTS OF OPTIONS LAST
VERY LAST -- IT IN CHANGING
A POLICY ADDING AN EXTENDED
REPLACEMENT COST PROVISION
TO A HOME POLICY THAT DOUBLES
THE COVERAGE IT REALLY IS NOT
THAT EXPENSIVE SO IF IT ISN'T
THAT HARD ON THE HOMEOWNER TO
GET BETTER COVERAGE IF THEY'RE
WORKING WITH A REALLY GOOD
AGENT -- SO IT JUST MAKES ALL
THE DIFFERENCE TO SHORT DR
DIXIT DIX YET IF THE MUSIC UP
JUST A COUPLE MORE THINGS ON
YOUR ON YOUR POINT OF THAT SO
WE DID FIND THAT THE MARKET
SHARE OF THE SURPLUS LINES
CARRIERS IS INCREASING A LITTLE
BIT IN THESE HIGH RISK AREAS
AND YOU KNOW THOSE AREN'T IS
-- THOROUGHLY REGULATED BY
THE CALIFORNIA DEPARTMENT OF
INSURANCE AS THE ADMITTED --
CARRIERS -- SO YOU KNOW THAT
THAT'S SOMETHING TO THINK ABOUT
AND THE OTHER THING WE DID FIND
IS THAT IN CERTAIN AREAS THE
FAIR PLAN IS INCREASING THEIR
MARKET SHARE SO THAT TELLS YOU
THAT THERE IS SOME YOU KNOW
CONCERNS BY THE ADMITTED MARKET
EVEN THOUGH THERE'S TURNOVERS
AND THERE'S NEW ENTRANTS
OVERALL THERE IS SOME CONCERNS
AND YOU KNOW WE'RE NOWHERE NEAR
THIS IN IN CALIFORNIA BUT YOU
KNOW YOU ALWAYS HAVE TO KEEP
OUR EYE ON THE MARKET YOU'RE
THE FAIR PLAN WE DON'T WANT TO
TURN TURN INTO SOMETHING LIKE
HAPPEN IN FLORIDA WHERE YOU HAD
A MATH OF -- -- -- -- -- THE
YOU KNOW -- FAIR PLAN IN EFFECT
COME INTO BEING AND ALL THE THE
PROBLEMS THAT THAT COSTS SEVEN
NUMBER GIPSON AUG I'LL GET
YOU KNOW I'LL ASK THEM OFF
LINES I KNOW FOR THE INTEREST
OF TIME SENATOR LARA THANK YOU
I THINK I I SHOULD JUST ASK
ALL MY QUESTIONS AND THEN TO
PICK AN ANSWER BECAUSE I WANNA
MAKE SURE -- I GUESS I HAVE
I HAVE ROUGHLY FOUR QUESTIONS
FOR DIFFERENT PEOPLE SO ONE FOR
MISTER DIXON WE KEEP TALKING
ABOUT HIGH RISK AREAS WHAT
DOES THAT MEAN NOW WE HAVE NO
IDEA WHAT A HIGH RISK AREA IS
GOING TO BE NEXT YEAR OR THE
YEAR BEFORE SO ARE AND AND
THIS GIVEN CHANGING CLIMATE
AND WE'VE ALWAYS TO WORK ON
LEGISLATION TO TRY TO FIGURE
OUT HOW WE CAN DO NEW MODELING
TO BE ABLE TO FIGURE OUT WHAT
IS A HIGH RISK AREA NOW BECAUSE
CLEARLY WHAT WAS A HIGH RISK
AREA BEFORE CLEARLY NOT NOW
OR IS IT SOMETHING DIFFERENT
SOLD OUT FOR -- MISBACH WHAT
ROLE SHOULD LOCAL GOVERNMENTS
PLAY INCITING YOU HOUSING
AND HOW DO WE FIGURE OUT --
WHERE SHOULD LOCAL GOVERNMENTS
FOLK FOCUS ON A IN TERMS OF
BUILDING IN SENSITIVE AREAS
WANT TO GET YOUR THOUGHTS ON
THAT -- THE OTHER THING IS --
THE OTHER QUESTION I HAVE TO
FACT THAT -- THE MAJORITY OF
THE LEGISLATION THAT WE PASSED
SEEMS TO REALLY TARGET -- THIS
ISSUE PROSPECTIVELY HAVE WE
DONE ENOUGH FOR PEOPLE WILL
ACTUALLY SURVIVED -- THESE AS
ASTERS NOW -- AND AND WHAT CAN
WE DO THE OTHER THING IS AS
YOU KNOW WE PASSED LEGISLATION
TO -- EXPAND PROTECTIONS TO
TWELVE MONTHS FOR PEOPLE WHO
ARE HAVING LOST HER HOME WE'VE
ALSO -- HOW TO COLLECT NEW
DATA WHEN IT COMES TO FIRE
RISK ASSESSMENT IF THAT DATA
COMES BACK SAYING THAT -- THIS
VIRUS STATE IS BEING USED TO
DENY PEOPLE ACCESS TO INSURANCE
WILL YOU COMMIT TO HELPING US
ADDRESS THIS ISSUE OKAY ENOUGH
OKAY OFF THEIR -- SO YOU KNOW
IT'S FAR AS HIGH RISK AREAS OF
REALLY GOOD QUESTION WHAT WE
DID IS WE LOOK WE LOOK AT --
WILD FAR MODELS -- AND LOOK AT
THE PERCENT OF ACRES IN EACH
-- ZIP CODE THAT ARE EXPECTED
THE BURN AND THEN COMBINE THAT
WITH ESTIMATES OF WHERE THE
POPULATION IS TO DETERMINE THE
YOU KNOW THE EXPECTED AVERAGE
THAT NUMBER OF STRUCTURES
EXPECTED TO BURN IN ANY GIVEN
YEAR SO THAT WAS A THE MEASURE
OF HIGH RISK VERSUS LOW RISK
AND YOU KNOW YOU CAN THINK OF
THE LOW RISK ONES AND YOU KNOW
THINGS ARE CHANGING BUT YOU
KNOW AND VERY DENSELY URBAN OUR
URBAN AREAS YOU KNOW WILD FIRES
NOT A RISK AND YOU KNOW TO THE
ISSUES RELATED EMBERS AND ALL
THAT SO THOSE ARE OUR LOW RISK
AREAS IN THE HIGHER ONES ARE IN
THE YOU KNOW THE THE WILDLAND
URBAN INTERFACE THE OTHER PART
OF OUR STUDY WAS TO LOOK AT HOW
THOSE -- THOSE HIGH WILD WILD
FIRE RISK AREAS ARE EXPECTED
TO CHANGE WITH CLIMATE CHANGE
TO THE END OF THE CENTURY --
USING THE DIFFERENT PROJECTIONS
AND WE FOUND LIKE IN THE AREAS
ABOVE THIS YEAR OF SACRAMENTO
AND THE SIERRA FOOTHILLS DID
THE EXPECTED NUMBER OF PERCENT
OF ACRES TO BURN DISAFFECTED
TO DOUBLE BY MID CENTURY AND
THEN DOUBLED AGAIN BY THE --
THE END OF THE CENTURY SO THOSE
ARE -- YOU KNOW BIG NUMBERS AND
-- YOU KNOW TO THIS IS THE ON
GOING -- MAJOR ISSUE FOR THE
STATE TO DEAL WITH AND JUST AS
A SIDE ALSO IMPORT -- POINTS
OUT THE IMPORTANCE OF EFFORTS
TO CONTROL CARBON EMISSIONS
THAT WILL THAT CAN REDUCE
THAT THAT AFFECT THIS BALK
OKAY -- SO ON OUR WHAT CAN
LOCAL OFFICIALS DO LET'S START
THERE -- CERTAINLY ENFORCE
BUILDING CODES WHICH IS EASIER
SAID THAN DONE I KNOW YOU KNOW
CINEMA COUNTY AND NAPA COUNTY
YEAH YOU HAVE THERE'S A LITTLE
BIT OF A OF A CONFLICT YOU KNOW
YOU WANT TO HELP PEOPLE REBUILD
BUT YOU ALSO WANT TO MAKE SURE
THAT THEY BUILD SAFE AND SO
BUT THEY DO SO WE DO NEED TO
ENFORCE OUR BUILDING BECAUSE
I YOU KNOW LIMIT DEVELOPMENT
IN STE NEW CONSTRUCTION IN
SENSITIVE AREAS I MEAN I THINK
TO A DEGREE THE INSURANCE
MARKET DOES -- DOES HELP BY YOU
KNOW BY APPROPRIATELY -- AND
CHARGING FOR YOU KNOW PEOPLE
WHO ARE BUILDING A HIGHER RISK
WE JUST WANT TO MAKE SURE THAT
THEY'RE NOT THAT THEY'RE DOING
IT FAIRLY BUT WE DO HAVE A
PRETTY HARDY REGULATORY REGIME
INSURERS CAN COME IN ANYTIME
THEY WANT FOR A RATE INCREASE
REQUEST SO IT'S NOT LIKE YOU
KNOW THERE'S SOME CAP THERE --
AT THE TWO THE TWO ISSUES THAT
I KNOW WE'RE GONNA NEED MORE
COOPERATION FROM FROM INSURERS
ON -- ALIY IN THIS AREA JUST
LIVING EXPENSE A LOT OF PEOPLE
-- ARE ARE ARE VERY NERVOUS
THAT THEY'RE NOT THAT NEW EVEN
THEIR TWENTY FOUR MONTHS --
ISN'T GONNA GET TO GET THEM
THEY'RE NOT GONNA BE ABLE TO
BE BACK HOME -- AND I AND I
THINK YOU KNOW WE'RE AGAIN
WE'RE GONNA CALL ON INSURERS TO
WORK WITH THEIR THEIR CUSTOMERS
AND YOU KNOW JUST JUST TO JUST
TO REFUTE YOU KNOW REX'S AYE
IT'S A CASUAL IDEA THAT YOU
KNOW YOU HAVE A LITTLE BIT OF
PROOF THAT YOU WERE MISLED AND
-- FOR YOUR POLICY GETS REFORM
IS NOT LIKE THAT AT ALL YOU
KNOW PEOPLE WHO PEOPLE HAVE
TO GET EVIDENCE THAT THERE
WAS THIS COMMUNICATION OF
PEOPLE HARDLY EVER DO SO THE
MAJORITY OF PEOPLE WHO ACTUALLY
GET THEIR POLICIES REFORM TO
BE WHERE THEY WE SHOULD HAVE
BEEN THERE A VERY SMALL SET
SUBSET OF PEOPLE WHO ROCKY
LESLIE SAVE THESE TAX IN THESE
LETTERS MOST PEOPLE WHO ARE
IN THE HE SAID SHE SAID AND
I WANT TO SPONSORS AND LARA
QUESTION SURE SURE I'M SO YEAH
JUST SO EXTENDING A LEAVE FOR
ANOTHER SIX MONTHS IF PEOPLE
CAN SHOW THAT THEY USE DEL
DUE DILIGENCE AND COULDN'T GET
BACK IN AND THEN WE STILL HAVE
A BIG ISSUE COMING DOWN THE
PIKE WITH THE DEBRIS REMOVAL
BILLS OKAY MISTER FRAZIER
CENTER LARA'S HERE RETROACTIVE
IMPACT WE SAW A LOT OF THOSE
BILLS THIS YEAR -- WE CERTAINLY
BELIEVE THAT PRICES ARE BASED
ON WHAT THE LAW IS THAT THE
TIME YOU MAKE YOUR RATE FILING
AND WHEN THE LEGISLATURE
CHANGES THE RULES TO LET'S
SAY ADD ADDITIONAL POLICY --
EXPENSES THAT WE WOULD PAY --
AT THAT POINT ONCE WE REFLECT
THOSE THEN WILL COME TO THE
DEPARTMENT OF INSURANCE ASK
FOR RATE INCREASES TO COVER
THOSE ADDITIONAL COSTS -- BUT
WE HAVEN'T BEEN ABLE TO GET
COMFORTABLE WITH THE NOTION
THAT WHEN OUR RATES ARE BUILT
ON A CERTAIN BODY OF LAW THAT
THE LEGISLATURE WOULD COME
ALONG AND THEN RETROACTIVELY
CHANGE THE LAW TO ADD ADD
ADD COSTS WITHOUT THAT BEING
INCLUDED IN THE RATE FILINGS
AS TO UNDERWRITING UNDERWRITING
IS REALLY A TOOL THAT INSURERS
MUST USE WHEN THEY ARE NOT
ABLE TO GET ADEQUATE RATE
WHEN -- WHEN A A RATE -- PLAN
APPROVED BY THE DEPARTMENT OF
INSURANCE IN A CERTAIN AREA
LET'S SAY -- WOULDN'T ALLOW
THE INSURANCE COMPANY TO
GET ADEQUATE PRICE YOU CAN'T
CONTINUE JUST TO OPERATE AS
BUSINESS AS USUAL SO YOU START
USING -- UNDERWRITING TOOLS
-- TO DENY APPLICATIONS OR
POSSIBLY NON RENEW TO MAKE SURE
THAT THE RICH THAT THAT LOWER
RISK MATCHES THE INADEQUATE
PRICING OF THE AREA THAT'S THE
STRUGGLE -- THAT THAT COMPANIES
FACE AND OBVIOUSLY WITH RATE
ADEQUACY IT'S A LOT EASIER
TO WRITE IN EVERY COMMUNITY
WHERE THE ONLY THING YOU'RE
MANAGING AT THAT POINT IS
GEOGRAPHIC OVER CONCENTRATION
CENTER LARA YOU GET THANKS
FOR THOSE GOOD QUESTIONS THAT
ASSEMBLY MEMBER GRAYSON THANK
YOU SENATOR AND CHAIR I -- AND
I UNDERSTAND THE PURPOSE AND
HAVE FOR THIS HEARING AND AND
WHILE WE'RE HERE -- HOWEVER
-- JUST JUST AS A REMINDER
THE WILD FIRES THAT WE HAVE
CAN'T BE SILENT INTO JUST A
CONFLICT BETWEEN HOMEOWNERS
AND POLICY OF PROVIDERS THERE
ARE SO MANY OF THE THINGS THAT
WE NEED TO DO ON A STATE LEVEL
WITH FIRE MANAGEMENT AS FAR
AS FORCED -- MANAGEMENT AND
LAND MANAGEMENT AS WELL AS THE
LOCAL POLICIES SO I DON'T NEED
AN ANSWER TODAY WHAT I WILL
DO IS THROW THIS OUT CHAU AND
SHARE WITH YOU THE INTEREST
THAT I HAVE IN MY OFFICE WHAT
WILL BE PURSUING AND WHAT WAS
MENTIONED BY MISBACH WAS THAT
WE HAVE THE LAWS WERE JUST NOT
ENFORCING THEM AND -- THE SOME
OF THE THINGS THAT YOU HAD
MENTIONED ABOUT WHEN WE HAD
THE DISASTER YOU AT A TABLE
OUT THERE -- THAT'S GREAT AND
THAT'S FANTASTIC BUT NOT ALL
THE VICTIMS COULD MAKE IT TO
YOUR TABLE AND SO I THINK THE
ONE THING I'M REALLY INTERESTED
IN IS MAKING SURE THAT PRIOR
TO A DISASTER -- POLICY HOLDERS
PROPERTY OWNERS ARE AWARE
OF THEIR RIGHTS AND THEY ARE
AWARE OF RESOURCES THAT ARE
AVAILABLE FOR THEM WHETHER IT
BE FEMUR ANYTHING ELSE PRIOR
TO RATHER THAN WAITING TILL
AFTER THE DISASTER AND THINGS
ARE A BIT AWRY THE OTHER THING
I'M REALLY REALLY FOCUSED AND
INTERESTED IN AND POSSIBLY
IF YOU DID WANT TO RESPOND
MISTER THERE -- ON HOW OFTEN
ARE POLICIES REVIEWED AND HOW
OFTEN ARE THE UPDATED TO ASSURE
THAT SOMEONE HAS ADEQUATE
INSURANCE -- I WOULD SAY ON
ON OUR COMMERCIAL POLICIES --
AND WE WERE REVIEWING THOSE
LIMITS WITH WITH THOSE POLICY
HOLDERS ON AN ANNUAL BASIS --
ON THE HOMEOWNER'S POLICIES --
YOU KNOW OUR POLICY IS TO DO
A COMPREHENSIVE REVIEW EVERY
THREE YEARS -- SO -- YOU KNOW
SOME OF THE SOME OF THE CLIENTS
GET A REVIEW MORE OFTEN THAN
THAT BASED ON -- THERE NEED
-- YOU KNOW A LOT OF TIMES
THEY'RE THEY'RE ASKING FOR THAT
BUT -- YOU KNOW I WOULD SAY
EVERY THREE YEARS AS YOU KNOW
WE'RE WE'RE SITTING DOWN AND
WE'RE ASKING OUR OUR AGENTS TO
SIT DOWN AND AND LOOK LOOK AT
THESE -- LIMITS WITH WITH SO
POSSIBLY I NEED TO -- -- SEEK
SOME HELP THEM BECAUSE I'VE
HAD ONE FOR FIFTEEN YEARS AND
NEVER HAD A I WOULD I WOULD
BE REVIEW AND CONTACT THE
VETERAN TO SEND THE NEED FOR
GRAYSON AYE AYE AYE OH SORRY
I I I I JUST WANTED TO DRAW
YOUR ATTENTION AB SEVENTEEN
NINETY SEVEN WHICH WAS PASSED
THIS YEAR TO REQUIRE -- A AND
A PROVISION OF IT REPLACEMENT
COST ESTIMATE EVERY TWO YEARS
ON THE LOT THAT THE GOVERNOR
SIGNED JUST HAVE A COUPLE
MOTHER QUESTION SO AS CELLULAR
GRACIE YOU'RE GOOD OKAY SENATOR
GALGIANI AND THEN ASSEMBLY
MEMBER COOLEY -- SENATOR MORE
LOG SORT OF TOUCHED IN THE
SPACE A LITTLE BIT EARLIER AND
I I WANTED TO THROW THIS OUT
SPECIFICALLY TO MR FRAZIER --
AND OF THE BUILDER COMMUNITY
AND THEY MORTGAGE COMMUNITY MY
DISTRICT -- HAPPENS TO BE IN A
A FLAT OUT HEY THE EXPOS FLAT
AREA HAVE SEVENTEEN HUNDRED
MILES OF DELTA LEVEES -- THAT
GOES FROM SAN JOAQUIN COUNTY
OF SACRAMENTO COUNTY IN TWENTY
YEARS AGO WE HAD A MASSIVE
FLOOD AND MASSIVE DAMAGE AND
THE SENSE THAT TIME THERE HAS
BEEN LEGISLATION THAT HAS BEEN
VERY CONTROVERSY I'LL BUT IT
SET UP NEW STANDARDS FOR TWO
HUNDRED YEAR FLOOD PLAIN AREAS
WHERE BY ANY BUILDER GOING
INTO AN AREA INTO ONE OF THOSE
DESIGNATED AREAS MUST MEETS
CERTAIN HIGHER STANDARDS --
BEFORE THEY CAN GET APPROVED
TO BE ABLE TO BUILD AND THERE'S
A TIME LINE THAT'S ATTACHED
WITH THAT YOU MIGHT YOU MIGHT
REMEMBER IT WAS SB FIVE BY
SENATOR MACHADO AM AND AGAIN
IT'S BEEN CONTROVERSY BECAUSE
THERE BEEN SOME SOME PROBLEMS
WITH IT IT GETS DIFFICULT WHEN
YOU'RE TRYING TO TELL PROPERTY
OWNERS WHAT THEY CAN DO AND
CAN'T DO WITH THEIR PROPERTY
BUT CAO FIRED DOES KEEP --
MAPS OF THEIRS THEY CALL THEM
THEIR STATE RESPONSIBILITY
AREAS THERE AS R.
A.'S OF THE VERY HIGH RISK
-- FIRE AREAS AND I KNOW THAT
WITH THE THE CONSTITUENTS IN
MY DISTRICT -- THEY DIDN'T
SET OUT TO INTENTIONALLY BY
HOME IN A FLOOD PLAIN -- THEY
TRUSTED OTHERS WHO ENCOURAGED
THEM TO BUY WHETHER IT'S THAT
THE THE BUILDER THE -- REAL
ESTATE AGENTS TO ENSURE WHOEVER
WOULD BE THEY JUST TRUSTED THAT
WELL THIS IS ON THE MARKET AND
AND I'M GONNA BUY THIS HOME
BECAUSE I WANTED -- I'M JUST
WONDERING IF THERE'S BEEN ANY
THOUGHT TO HAVING DISCUSSION
AMONG THE INSURANCE INDUSTRY
THE BUILDING INDUSTRY MORTGAGE
INDUSTRY ABOUT TAKING A LOOK AT
THE STATE RESPONSIBILITY AREAS
AND REALLY LOOKING AT YOU KNOW
DO WE NEED TO SET UP SOME SOME
REQUIREMENTS SIMILAR TO WHAT'S
BEEN DEAD FOR DONE FOR FLOOD
AREAS THAT ACTUALLY FEMALE WAS
INVOLVED WITH AS WELL AS AT A
CONVERSATION IT'S BEEN STARTED
OR THOUGHT ABOUT I'M I'M NOT
A AWARE OF THAT WHERE THERE
WOULD BE TO SIGN UNDERSTAND
YEAH -- THAT THERE WOULD BE
SOME ENFORCER WEATHER WOULD
BE I GUESS SOME STATE AGENCY
THAT WOULD THAT WOULD MANDATE
THE PURCHASE OF INSURANCE FOR
CERTAIN FOLKS IS THAT IS THAT
THE BECAUSE CERTAINLY IN LAKE
COUNTY THAT WAS A GREAT EXAMPLE
WHERE THERE ARE A LOT OF FOLKS
WHO THEY INHERITED THEIR HOMES
THEY WERE PAID OFF THERE'S NO
BANK THEY'RE REQUIRING A NOTE
AND ALL OF A SUDDEN YOU HAVE A
TREMENDOUS -- TO WAY TOO MANY
FOLKS WHO JUST COMPLETELY LOST
THEIR HOME INSURANCE WE I MAYBE
I UNDERSTOOD IT TO ASK ABOUT
AN EQUIVALENT OF THE FLOOD
MAPPING PROGRAM FOR FIRE RISK
OKAY AND SO IF YOU DON'T MIND
I I I DON'T THINK WE HAVE THAT
WE DO HAVE IN FACT WHEN I I HAD
A NOTE HERE TO ASK LLOYD AND
A YOU KNOW IS THERE A UNIFORM
STANDARD FOR HIGH RISK I THINK
-- A CENTER LARA ACTUALLY
ASKED FOR THE SAME QUESTION
AND I JUST WANT TO THE POINT OF
INFORMATION TO SHARE IF THE IF
IF ALL OF YOU DIDN'T KNOW THIS
BUT THE GOVERNOR CREATE A TASK
TASK FORCE ON TREE MORTALITY
A NUMBER OF YEARS AGO RIGHT
AND THEY WERE LOOKING AT WHAT
WE GONNA DO WITH THE HUNDRED
MILLION DEAD TREES FROM THE
BARK BEETLE INFESTATION BUT
THEN IT THEN A THEN BECAUSE
IN A LOT OF THESE AREAS THE
INSURANCE MARKET WAS CHANGING
AND PEOPLE WERE GETTING ON
RENEWED ONE OF YOUR COLLEAGUES
-- ACTUALLY HOT NOT RENEWED --
AND AND SO THERE AN INSURANCE
SUB GROUP -- GREW OUT OF THE
TREE MORTALITY TASK FORCE IT'S
KIND OF -- I REALLY MORE OF
ONE BUT IT'S IT'S SORT OF ON
HOLD RIGHT NOW AND I JUST SPOKE
TO A SUPERVISOR DOWN AMERICA
COUNTY ABOUT WHETHER WE SHOULD
TRY TO RENEW IT BECAUSE THE
FOCUS THERE WAS WOULDN'T BE
GREAT IN TERMS OF OF DEVELOPING
MITIGATION STANDARDS DISCOUNT
SUPPORT -- AND BEST PRACTICES
WITH WITH FORESTRY MANAGER
AND ALL THAT THAT WE THAT
WE CONTINUE THIS WORK WITH
INSURERS WITH STAKEHOLDERS WITH
CAL FIRE BECAUSE THERE REALLY
ISN'T A STANDARD THERE'S I
DON'T BELIEVE THERE'S A HIGH
RISK -- CLASSIFICATION THAT
EVERYONE WOULD AGREE WITH I
THINK THE IN THE INSURANCE
PROBABLY A LOT OF THEM USE
THEIR OWN WAY OF DEFINING AND
I KNOW THAT -- THAT THERE'S
WE HAVE A LONG WAY TO GO TO
FIGURE OUT WHAT'S EFFECTIVE IN
SAVING HOMES IN THE AFTERMATH
OF A WILDFIRE COMPARED TO FLOOD
WE HAVE A LOT MORE THERE'S A
LOT MORE STRATEGIES YOU CAN
USE THAT WE KNOW WORK YOU KNOW
WITH WILDFIRE WE STILL HAVE
YOU KNOW THE THE -- SCREENS
TO KEEP EMBERS WERE FLYING
BACK AND YOU CAN DO THAT ROOF
VENT -- SCREENS YOU'VE GOT THE
THE PHONE AND THAT OF COURSE
REPLACING RUSE BUT THEY'RE
STILL -- YOU KNOW WE STILL
HAVE SOME WORK TO DO -- BUT I
THINK TRYING TO GET SOME CLEAR
STANDARDS I THINK A MAPPING
IDEAS GREAT -- IF YOU CAN
FIGURE OUT WHO'S GOING TO PAY
FOR IT AND DO IT THERE THERE
ARE THERE ARE MAPS THAT ARE OUT
THERE THE CPC'S BEEN WORKING
FOR I I BELIEVE THE LAST TEN
YEARS ON UPDATING THEIR MAPS
CAL FIRE HAS BEEN INTIMATELY
INVOLVED IN THAT I THINK THE
CRITICISM YOU'LL HEAR OF OF THE
EXISTING A HIGH FIRE SEVERITY
MAPS IS THAT LACKS NGUYEN DATA
-- WHICH HAS BEEN TERRIBLY A
JUST THERE'S NEVER BEEN THE
COMPUTING POWER IN ORDER TO
PUT THAT TOGETHER -- THE BUT
THERE ARE THERE ARE START UPS
AND SILICON VALLEY THAT ARE
TRYING TO BUILD A BETTER MOUSE
TRAP IN THOSE THOSE MODELS
WILL GET BETTER OVER TIME
AND THE CPC CERTAINLY IS IS
PRESSING FOR THAT OKAY THANK
YOU THANK YOU -- ASSEMBLYMEMBER
COOLEY ON THAT LAST QUESTION
OUR
--
EIGHT GENERAL QUESTION IS HOW
DO YOU FEEL THE -- RESIDENTIAL
PROPERTY INSURANCE DISCLOSURE
FORM IS WORKING AT OF COURSE
CAME OUT OF THE OAKLAND HILLS
FIRE NICK PREFERS LOST HIS
HOME IN IS THREE THOUSAND
VOLUME LIBRARY THINKCENTRE NICK
PETROUS LOST A HOME IN OAKLAND
HILLS WE HAVE THE DISCLOSURE
FORM WHICH IS ACTUALLY WHERE IN
THE COLD WE TALK ABOUT DEMAND
SURGE CHANGES IN BUILDING
CODES IT DEALS WITH ACTUAL
CASH VALUE COVERAGE REPLACEMENT
COST COVERAGE SO THERE IS A
DISCLOSURE THE PEOPLE SUPPOSED
TO GET THE DETAILS OF WHAT
TYPE OF -- COVERAGE THEY'VE GOT
WHICH DEALS WITH THE ADEQUACY
ISSUE OR NOT BUYING INSURANCE
THEIR ACTION OBVIOUSLY NOT
GETTING THAT DISCLOSURE WHICH
WAS START EDUCATING THEM BUT
JUST ANY COMMENTS ABOUT HOW
THAT SCHEME OF THE -- COVERAGE
DISCLOSURE THAT IS CURRENTLY
A PART OF OUR LAW AND THEN
RELATED TO THE BILL OF RIGHTS
ANY UPDATED COMMENTS ON THOSE
MY ONLY COMMENT ON THAT IS I
JUST DON'T THINK PEOPLE READING
IT I MEAN EIGHTY I GUESS EIGHTY
PERCENT OF THE PEOPLE THAT
LOST HOMES OR HAVE SMOKE DAMAGE
CLAIMS IN THIS THIS EVENT
DIDN'T DIDN'T HAVE A CLUE WHAT
WHAT THEIR COVERAGE WAS SO --
IT'S GREAT TO HAVE THESE THINGS
BUT IF IF IT'S NOT -- IF PEOPLE
ARE TAKING THE INITIATIVE TO
TO READ WHAT THEY'RE BUYING
AND -- AND TRYING TO UNDERSTAND
IT -- THAT THAT STUFF FOR
TO ADD TO THAT I THINK -- YOU
KNOW I'M A LAWYER I SO I YOU
KNOW I'VE I'VE LOOKED AT THE
HISTORY OF THE LAW AND YOU
GAVE SOME GOOD OUT OF IN THE
BACKGROUND MATERIALS FOR THE
HEARING OF OF THE EVERY CASE
AND WHICH BASICALLY HAS HAS
BEEN IN MY OPINION LOOKING AT
THIS FOR A LONG TIME I THINK
THE FACT THAT ULTIMATELY -- THE
INSURER AND ITS PRODUCER OR DO
NOT HAVE A -- AS A TO A DUTY TO
ADEQUATELY ENSURE AT LEAST THE
COURTS HAVE NOT WANTED TO HIM
THAT ON THE SELLER TO SAY OKAY
IT'S NOT ENOUGH JUST TO SELL
SOMEBODY INSURANCE YOU GOT TO
SELL THEM INSURANCES TAILORED
FOR THEIR PROPERTY THE COURTS
HAVE NOT WANTED TO GO THERE
BUT I HONESTLY THINK THAT THE
FACT THAT THAT THAT THAT THEY
HAVEN'T GONE THERE IS WHY THE
PROBLEM KEEPS GOING BECAUSE
I THINK AS LONG AS YOU'VE GOT
THIS COMPETITION AND YOU KNOW
BETWEEN CARRIERS ARE GONNA YOU
KNOW YOU AND AND BECAUSE TOTAL
LOSSES ARE RARE AS LONG AS THE
CARRIER AND ITS AGENTS KNOW
THAT THEY ARE NOT GOING TO BE
HELD LIABLE UNLESS THE PERSON
HAS THIS INCREDIBLE QUANTUM
OF PROOF WHICH HARDLY ANYONE
HAS THAT THEY WERE MISINFORMED
MOST OF THE TIME THE CUSTOMER
LOSES SO I THINK THAT IS A
REALITY I KNOW THIS BODY IS
NOT ENTHUSIASTIC ABOUT CREATING
A NEW CAUSE OF ACTION BUT I
HAVE TO SAY -- WE'VE TRIED
ALMOST EVERYTHING ELSE OKAY
ASSEMBLYMEMBER COOLEY YOU'RE
GOOD GUY UNLESS THERE'S FURTHER
QUESTIONS FROM THE PANEL I
WANT TO THANK THEM FOR COMING
AND SHARING THEIR THOUGHTS
AND INSIGHTS WE'RE GONNA MOVE
NEXT TO PUBLIC COMMENT AND SO
IF YOU'RE HERE AND WOULD LIKE
TO SHOW THAT WE HAVE A PODIUM
TO THE RIGHT HE HERE AND YOU'D
LIKE TO PROVIDE SOME PUBLIC
COMMENT TO OUR JOINT COMMITTEE
I'D LIKE TO INVITE YOU TO COME
STAND UP BEHIND THE PODIUM AND
WE'LL GIVE EACH OF THE MEMBERS
OF THE PUBLIC THAT OPPORTUNITY
TO SHARE THEIR THOUGHTS -- AS
THE PANEL -- LIKE THIS FINISHES
UP HERE OKAY SO FOR PUBLIC
COMMENT I'D LIKE TO ASK YOU TO
TRY TO GET YOU IF YOU LET US
KNOW WHO WE ARE -- THAT WOULD
APPRECIATE THAT AND LIKE TO
ASK YOU TO CONSOLIDATE YOUR
COMMENTS IF YOU CAN INTO A
MINUTE OR TWO SO WE CAN HAVE
AT THE TIME FOR EVERYONE TO
WATCH PROVIDE THEIR TESTIMONY
TO US THIS MORNING SO WELCOME
COME ON UP AND THEN AT A GO
YEAH WE ARE READY TO GO IT IS A
GENTLEMAN THANK YOU FOR HAVING
THIS MEETING BY THE WAY IT'S
-- VERY INFORMATIVE -- MY WIFE
AND I LOST OUR HOME ON THE --
TUBS FIRE OCTOBER NINTH TWENTY
SEVENTEEN WE LOST OUR HOME
OR PERSONAL PROPERTY AND ARE
PROOF OF LIFE TOOK AS A MOTHER
TO CERTAINLY AFTER CHRISTMAS
BUT TO GATHER OURSELVES UP TO
PURCHASE CLOTHES SHOES POTS
AND PANS THINGS TO LIVE ON
AND FIND A PLACE TO LIVE SOON
AFTER CHRISTMAS WE REALIZED
THROUGH TALKING WITH NEIGHBORS
LAWYERS FRIENDS OF MINE
CONTRACTORS AND OTHERS AND ALSO
ATTENDING THE UNITED POLICY
HOLDER MEETINGS AND THANK
YOU VERY MUCH TO ME BOX FOR
THAT WE REALIZED THAT WE WERE
UNDERINSURED BUT WE WERE JUST
UNDERINSURED WE WERE SEVERELY
UNDERINSURED WE JUST PURCHASED
OUR HOUSE IN AUGUST OF TWENTY
FIFTEEN IN THE FOUNTAIN
GROVE AREA OF SANTA ROSA
NOW YOU WOULD THINK YOU WOULD
BE PROPERLY INSURED JUST BE
TWO YEARS BEFORE THE FIRE BUT
WE WEREN'T I HAD TO DO SOME
RESEARCH AND I'VE DONE A LOT
OF IT THROUGH -- A LOT OF
SOURCES ONE OF THOSE WAS IN
NORTH BAY BUILDERS EXCHANGE
REALIZING THAT THE PER SQUARE
FOOT BUILDING COST IN MY
NEIGHBORHOOD AND AREA AT THE
TIME OF THE FIRE WAS PROMISED
ME FOUR HUNDRED FIFTY TO FOUR
HUNDRED SEVENTY FIVE DOLLARS
PER SQUARE FOOT YOU'VE HEARD
HIGHER FIGURES OF THAT TODAY
GOING ABOVE SIX HUNDRED DOLLARS
A SQUARE FOOT AND I BELIEVE
THAT'S WHAT WE ARE RIGHT NOW
THAT COST IS GOING TO GO WHAT
MY HOUSE WAS INSURED FOR TWO
HUNDRED SIXTEEN DOLLARS PER
SQUARE FOOT I DON'T KNOW HOW
THAT HAPPENED WE JUST PURCHASED
OUR HOUSE TWO YEARS BEFORE
THE FIRE I TALK TO MY AGENT
WHO WE ARE NOT TALKING WE'RE
NOT TALKING RIGHT NOW BECAUSE
HE'S A BAND TO ME TWICE IN
THE LAST YEAR BECAUSE HE
THINKS HE'S GONNA GET SUED SO
WE STOPPED TALKING TO ME BUT
WHEN WE WERE TALKING I ASKED
HIM HOW CONGRESO UNDERINSURED
HE THOUGHT WE WERE PROPERLY
INSURED I TOLD HIM THAT WE WERE
NOT HE SAID THAT THE INSURANCE
COMPANIES INSURED UNDERINSURED
YOU ON PURPOSE I SAID WHY DID
THEY DO THAT THAT DEFEATS ITS
PURPOSE BECAUSE IF THEY REALLY
HONORED SURE YOU THE BE A LOT
OF LAWSUITS AND THEY GONNA
HAVE TO PAY OVER AND ABOVE THE
POLICY HE SAYS NO IT DOESN'T
WORK THAT WAY THE UNDERINSURED
BECAUSE NINETY PERCENT OF THE
PEOPLE WILL NOT FIGHT THEM
WILL NOT RESIST THEM THEY WILL
WALK THEY WILL GIVE UP I'M
HERE TODAY TO TELL YOU THAT I'M
NOT GIVEN WE'VE GONE THROUGH
FROM THIS BOX ORGANIZATION
AND LEARNING THROUGH HER
MEETINGS THAT THERE IS A
PROCESS CALLED THE REFORMATION
PROCESSES REFORMATION A POLICY
AND COVERAGES THIS THIS IS
A POLICY OR THIS IS -- AN
ACTION THAT THE INSURANCE
COMPANIES CAN TAKE TO AWARD
YOU YOUR COVERAGES ABOVE AND
BE ON YOUR POLICY LIMITS IF
THEY FIND THAT THEY HAVE MADE
MISTAKES AND WANT TO OWN UP
TO THEIR RESPONSIBILITIES I'VE
BEEN THROUGH THAT PROCESS AND
SINCE EARLY MARCH IN MAY THEY
ADMITTED THAT THERE WAS AN
AGENT BIDDING AIR WHATEVER THAT
MEANS IT MEANS THAT THE AGENT
MADE A MISTAKE HE DIDN'T COME
OUT TO MY HOUSE AND MEASURE THE
SQUARE FOOT IS ALTHOUGH HE WAS
OUT THERE SOCIALLY AND SO MANY
THINGS EVEN HELP ME PUT UP THE
OUTSIDE THE BACKYARD STRUCTURE
HE KNEW WHAT WE HAD YOU SAW WE
HAD ANY SONG ABOUT TWO HUNDRED
THOUSAND DOLLARS OF JUST A
MATERIAL COSTS OF IMPROVEMENTS
ON THAT HOUSE FOR THE TWO
YEARS THAT I OWN THE HOUSE THAT
I'VE WORKED ON EVERY SINGLE
DAY I ALSO FOUND OUT THAT HE
WAS INSURED FOR APPROXIMATELY
THREE HUNDRED FIFTY TO FOUR
HUNDRED DOLLARS A SQUARE FOOT
IN HIS NEIGHBORHOOD WHICH WAS
LESS THAN MINE WE WENT THROUGH
THE REFORMATION PROCESS THEY
ADMITTED THEIR MISTAKE THEY
ADDED TO MY COVERAGE J.
WHICH YOUR IS YOUR BUILDING
COST OF A HUNDRED THOUSAND
DOLLARS THEY WERE STILL
APPROXIMATELY SIX HUNDRED
THOUSAND DOLLARS SHORT OF WHAT
WAS GOING TO TAKE TO REBUILD AT
THAT TIME I TOLD HIM THAT WAS
WHOLLY INADEQUATE AND THAT I
WOULD PROVE TO THEM THROUGH A
BUILDER OR TWO THAT I WOULD GET
THOSE CONTRACTORS ESTIMATES TO
THEM AND I WOULD SHOW YOU THE
REAL COST OF WHAT IT'S GOING
TO COST TO REBUILD MY HOME IN
SANTA ROSA THAT WAS DONE BY
A VERY GOOD AND KNOWLEDGEABLE
PROFESSIONAL THROUGH A COUPLE
OF BUILDERS IT'S GOING TO
COST ABOUT APPROXIMATELY ONE
POINT THREE TO ONE POINT FIVE
MILLION DOLLARS TO REPLACE
MY HOUSE MY HOUSE WITH A SOUL
FOR APPROXIMATELY NINE HUNDRED
THOUSAND DOLLARS AT THE TIME
OF THE FIRE I HAD APPROXIMATELY
FIVE HUNDRED THOUSAND DOLLARS
OF PERSONAL PROPERTY WITH MY
WIFE AND I INVENTORY FOR ABOUT
TOO MUCH EVERY SINGLE DAY OVER
ELEVEN HUNDRED LINES INTO EXCEL
PROGRAM THEY JUST TURNED DOWN
MY SECOND REQUEST THE THEY HAD
A PERSONAL BECAUSE WHICH WE
CALL A MINI A MINI REFORMATION
BUT THEY JUST TURNED ME DOWN
LAST THURSDAY ON THE SECOND
REQUEST FOR A PROPER AND TRUE
REFORMATION OF POLICIES BECAUSE
THIS IS A SWAM DARK I'VE HAD
LAWYERS BEG ME FOR THEM TO
REPRESENT ME ON CONTINGENCY
BECAUSE THIS IS SUCH A SLAM
DUNK I TOLD FARMERS INSURANCE
FOR MONTHS AND MONTHS PLEASE
DON'T BE PENNY WISE AND POUND
FOOLISH I DO NOT WANT TO SUE
YOU I DO NOT WANT TO GO THROUGH
THAT IT'S GOING TO TAKE A LONG
TIME RIGHT NOW MY WIFE AND I
ARE REFUGEES IN THE NORTH BAY
WE'VE LOST OUR JOBS AND THIS
INSURANCE THING IN THIS FIRE
IS A FULL TIME JOB AND THAT'S
WHAT I'VE BEEN DOING FOR A
YEAR SO THE TERM IT DOWN LAST
THURSDAY I SIGNED THE CONTRACTS
ON SATURDAY TO SUE THEM I A
COUPLE VERY GOOD LAWYERS AND
HOPEFULLY THAT'LL TURN OUT WELL
THE WORD A PROTRACTED BATTLE
SO I WANTED TO EXPLAIN TODAY
FROM A FIRE CASUALTY WILL CALL
MYSELF A VICTIM BECAUSE I AM
NOT PART OF THE NINETY PERCENT
THAT'S NOT GOING TO FIGHT ON
THE PART OF THE TEN THAT'S
GOING TO FIND I'M GOING TO WIN
AND I INTEND TO GO TO THE MEDIA
AFTER THIS TO IT'S PART OF
MY CAMPAIGN NOW ON THE FORMER
MARINE OFFICER I FIGURE I'M IN
A BATTLE I'M STEPPING OVER THE
LINE OF DEPARTURE AND AND I'M
IN A FIGHT AND IT'S GOING TO BE
A COMPREHENSIVE FLIGHT AT THAT
THANK YOU ONE MORE TIME OF ONE
MORE THING I'M NOT JUST HERE
TO STATE THIS SOMEONE ASK YOU
SOMETHING SO I'M IN A LAWSUIT
NOW I AM GOING TO BE GOING
TO THE MEDIA BUT WE HAVE BEEN
TALKING ABOUT THE ADDITIONAL
LIVING EXPENSE THE LOSS OF
USE WHICH IS A TWO YEAR --
-- BENEFIT THAT THE INSURANCE
COMPANIES PROVIDE WE DO NEED
AN EXTENSION ON THAT I'VE ASKED
MY INSURANCE COMPANY TO EXTEND
THAT TO A THIRD YEAR OR MAYBE
MORE BECAUSE THIS ENTIRE LAST
YEAR'S BEEN A WASTE OF TIME HAS
BEEN A WASTE OF TIME IT'S BEEN
A LOSS OF TIME WE STILL HAVEN'T
STARTED YET WE CANNOT BUILD
OUR HOUSE WE CANNOT ALONG UNTIL
DON'T HOUSE AND I CANNOT BY OUR
HOUSE IN OUR AREA WE ARE RIGHT
NOW REFUGEE STATUS FLOODING
THE INSURANCE COMPANIES THAT'S
WHAT I WANTED TO SAY TODAY AND
IF YOU CAN ADD THE ELITE OF
ANYTHING BUT ALSO TAKE NOTE
I AM JUST ONE OF MANY MANY
OF MY FRIENDS ARE ALSO HAVING
TO SUE MY NEXT DOOR NEIGHBOR
ANOTHER PERSON HERE NOW BUT WE
ARE GOING THROUGH IT WHICH WE
SHOULD NOT HAVE HAD TO AND BY
THE WAY HOW DID MY INSURANCE
AGENT INSURE ME FOR TWO HUNDRED
AND SIXTEEN DOLLARS A SQUARE
FOOT TWO YEARS BEFORE THE FIRE
WHEN THE ACTUAL BUILDING COSTS
WAS FOUR HUNDRED FIFTY TO FOUR
HUNDRED SEVENTY FIVE DOLLARS
A SQUARE FOOT HOW DID THAT
HAPPEN BECAUSE ONE MORE THING
I'M A GUY THAT WAS WORKING
THREE JOBS OUT THERE I WAS
WORKING TWELVE FOURTEEN HOURS
A DAY WHEN THE BILL'S CAME
IN I WROTE CHECKS I'M NOT
NECESSARILY LOOKING AT THE
FINE PRINT BECAUSE WHEN HE TOLD
ME I WAS PROPERLY INSURED AND
EVERYTHING WAS GOING TO BE GOOD
TO GO IF THERE WAS A FIRE I
TRUSTED HIM I DID NOT KNOW WHAT
THE PER SQUARE FOOT BUILDING
COST WAS IN MY NEIGHBORHOOD --
AREA AND YOU KNOW WHAT MOST OF
US DON'T IN THIS FOR THE LAST
THE GENTLEMAN'S TALKED ABOUT
WHAT THE AMOUNT OF PEOPLE WHAT
THEY'RE DOING ON BUILDING OUT
THERE IT WAS SEVENTY TO EIGHTY
PERCENT OF THE PEOPLE THE TUBS
FIRE ARE UNDERINSURED THAT'S
WHAT'S REALLY GOING ON TALK TO
ON THEY'RE TRYING TO WORK OUT
THEIR CLAIMS THEY'RE TRYING
TO GET THE MONEY THEY CAN'T
DO ANYTHING UNTIL THEY FIGURE
OUT WHAT THEY HAVE TO WORK
WITH SEVERAL ON HOLD BECAUSE
OF THE INSURANCE COMPANY
AND HERE'S THE STATEMENT
WE CAN HANDLE THE FIRE WE
CAN HANDLE THE LOS WE CAN'T
HANDLE THE INSURANCE COMPANY
THANK YOU FOR YOUR TIME PIZZA
GOOD AFTERNOON AND I DON'T KNOW
HOW I'M GONNA FOLLOW THAT BUT
I AM STACY HEATING FROM THE
RURAL COUNTY REPRESENTATIVES
OF CALIFORNIA RC RC WE
REPRESENT THIRTY SIX ROLE
COUNTIES STATEWIDE INCLUDING
NAPA MENDOCINO LAKE AND NOW
CINEMA THEY JUST JOINED US IN
SEPTEMBER WE'VE BEEN HEARING
A LOT OF STORIES LIKE THE
PREVIOUS COMMENTS ARE OVER THE
LAST NOT JUST SINCE THE TWO
THOUSAND SEVENTEEN FIRES BUT
ALSO ON PREVIOUS FIRE SUCH AS
THE VALLEY FIRE IN LAKE COUNTY
AND THE BUTTE FIRE IN CALAVERAS
AND AMADOR COUNTY AND NOW WE'VE
HAD THE CAR FIRE THAT DESTROYED
MORE THAN A THOUSAND HOMES
UP IN THE SHASTA COUNTY AREA
AS WELL AS THE FERGUSON FIRE
IN THE MEDICINAL COMPLEX FIRE
THIS YEAR SO THESE FIRES ARE
GOING AWAY THESE HIGH SEVERITY
FIRES ARE GOING AWAY AND WE
ALSO HAVE A HUNDRED TWENTY NINE
MILLION DEAD TREES STILL DOWN
IN THE SOUTHERN AND CENTRAL
SIERRAS WHERE WE'RE HEARING
A LOT OF INSURANCE ISSUES
COMING FROM THOSE HOMEOWNERS
THAT ARE BEING CANCELLED THE
NON RENEWED AND WE'VE BEEN
HEARING THOSE STORIES FOR A
FEW YEARS NOW AND WE REALIZE
THIS IS A VERY COMPLEX ISSUE
WE'VE BEEN SPENDING THE LAST
FEW YEARS IN CONVERSATIONS
WITH THE INSURANCE INDUSTRY --
BOTH INDEPENDENTLY AND THROUGH
THE STATE'S TRIMMER TALLY TASK
FORCE -- BOTH RC RC AND OUR
MEMBER COUNTIES WE ARE TRYING
TO GEAR UP TO CONTINUE THOSE
DISCUSSIONS THROUGH THE NEWLY
FORMED FORCE MANAGEMENT TASK
FORCE THOSE CONVERSATIONS
HAVE UNFORTUNATELY NOT BEEN
AS PRODUCTIVE AS WE WOULD
LIKE WE HOPE TO MAKE THEM MORE
PRODUCTIVE SO WE CAN HOPEFULLY
TACKLE SOME OF THESE ISSUES
WITHOUT HAVING TO CONSTANTLY
GO BACK TO LEGISLATION BUT WE
APPRECIATE THE SUPPORT OF YOUR
TO COMMITTEES AND HOPEFULLY WE
CAN CONTINUE TO WORK THROUGH
SOME OF THESE ISSUES SO THAT
MY BOARDS CONSTITUENTS CAN
IMPROVE THEIR COVERAGE REBUILD
THEIR HOMES AND THOSE THAT ARE
STILL LIVING OUT IN HIGH FIRE
RISK AREAS WHICH AS WE KNOW
IS A GREATER AREA OF THE STATE
EVERY YEAR CAN CONTINUE TO
IMPROVE THEIR COVERAGE OPTIONS
THANK YOU VERY MUCH THANK YOU
HI EVERYONE MY NAME THIRTY FELL
CAM INSURANCE BROKER BUT IN THE
BUSINESS ALMOST THIRTY YEARS
HOW YOU DOING -- I'VE HEARD
QUESTIONS AND I JUST WANTED
TO GIVE YOU MY OPINION AND MY
BASED ON MY EXPERIENCE AS AN
INSURANCE AGENT I REPRESENT AS
A BROKER REPRESENT BOTH SIDES
ARE REPRESENT THE CONSUMER
AND I REPRESENT THE COMPANY TO
ALWAYS SIT IN THE MIDDLE AND
I DON'T LIKE CONSUMERS RIPPING
OUT THE COMPANY AS MUCH AS I
WOULD LIKE COMPANIES RIPPING
OFF THE CONSUMER AND IT'S MY
JOB TO DO MY BEST TO FIGHT FOR
EITHER THE PARTY'S DEPENDING
WHO I FEEL IS THE RIGHT DOING
THE RIGHT THING SO THE THING I
WANT TO SAY IS WHAT CHANGES CAN
YOU GUYS DO LEGISLATIVELY ONE
OF THE THINGS I WOULD CONSIDER
FOR YOU GUYS TO MAYBE CONSIDER
MAYBE EVEN WRITING DOWN BECAUSE
THESE ARE THE THINGS THAT WAY
I THINK YOU CAN MAKE A CHANGE
IS NUMBER ONE YOU HEARD A GUY
TESTIMONY TODAY THAT COULD
CAUSE AN EXTRA HUNDRED THOUSAND
DOLLARS WITH BUILDING CODE
UPGRADES WELL MOST INSURANCE
POLICIES HAVE A STANDARD FOR
BACK UP TEN PERCENT IF YOU'RE
SURE HOUSE FOR THREE HUNDRED
THOUSAND A TEN PERCENT THAT'S
THIRTY THOUSAND DOLLARS THAT
COMES WAY SHORT I THINK THE
STANDARD DRAWBACKS A BABY BE
TWENTY FIVE THIRTY PERCENT
SO WE SHOULD CONSIDER HAVING
MINIMUMS IT WHEN IT COMES TO
BUILDING GOT CAUGHT UP GREAT
SO WE CAN COVERED A HUNDRED
THOUSAND DOLLARS AND MAKE IT
A STANDARD PART OF A POLICY --
IT'S GOING TO COST VERY LITTLE
SECOND THING I WOULD LOOK AT
IS I WILL LOOK AT POLICIES
WE COMES TO LEADING COMPANIES
THEN THE COMPANIES A LOT OF
TIMES HE GAVE AN EXAMPLE GUIDES
PAYING THREE HUNDRED DOLLAR
FINE ONE THOUSAND DOLLARS FOR
A HOUSE ASKEW'S BEFORE PIECE
OF PROPERTY BUT THE HOUSE IS
WORTH EIGHT HUNDRED THOUSAND
YEAH THAT HAPPENS AND YES IT'S
DIFFICULT TO EXPLAIN TO AN
INSURED THAT WE DON'T INSURE
WHAT YOU BOUGHT THE HOUSE FOR
WILSHIRE WOULD COST TO REBUILD
THE HOUSE BUT A LOT OF TIMES
THE OPPOSITE IS TRUE YOU COULD
SPEND EIGHT HUNDRED THOUSAND
DOLLARS FOR A PIECE OF PROPERTY
AND THE HOUSE IS ONLY WORTH
TWO HUNDRED FIFTY THOUSAND
DOLLARS NOT TRY EXPLAINING THAT
TO THE LENDER WHO WANTS IS TO
COVER THE LOAN SO IT WORKS BOTH
WAYS SO WHEN YOU LOOK AT THE
INDUSTRY LOOK AT THE LENDING
INDUSTRY AS WELL BECAUSE THEY
HAVE A LOT TO DO WITH HOW
PEOPLE ARE SHORT ANOTHER THING
THEY PROVIDE REPORTS TODAY WHEN
YOU BUY A PIECE OF PROPERTY I
THINK IT'S REQUIRED BY LAW IF
YOU BUY A PIECE OF PROPERTY
TO THE HOME THAT IF YOU'RE
IN A FLOOD PLAIN YOU HAVE TO
HAVE TO BE DISCLOSED THEIR
DISCLOSURES AND I'M NOT TALKING
ABOUT INSURANCE IS BECAUSE I
KNOW YOU KEN COOLEY RIGHT BUT
SEE WHY CAN'T THESE PEOPLE WHO
REPORT THESE NOMINEES BASED
ON WHERE YOUR HOME IS SAY HEY
YOU'RE BUYING A HOME IN A FIRE
HAZARD ZONE SO THAT PEOPLE WHO
ARE BUYING THESE HOUSES CAN'T
SEE LATER HEY I WAS UNDER SURE
BECAUSE YOU KNEW THAT THAT'S
WHAT YOU WERE GETTING YOU
KNEW YOU WERE GETTING A HOUSE
IN THE FOOT PAIN SO I THINK
THAT SHOULD BE A REQUIREMENT
BECAUSE AS FAR AS MAPPING IS
CONCERNED THREE YEARS AGO I
STARTED NOTICING THAT ALL THE
CARRIERS THAT I USED TO USE
THAT WOULD COVER PEOPLE THAT
WERE IF FIRE AREAS STARTED
BACKING UP THEY WERE BRAGGING
ABOUT HOW YOU CAN COME TO US
BECAUSE WE ARE SURE PROTECTION
CLASS TEN PROTECTION CLASS IS
WHAT WE USED TO USE IN ORDER TO
DETERMINE WHAT THE RISK FACTORS
WERE FOR THE HOMES SO WITH
SOMEONE WITHIN THE EIGHT NINE
OR TEN YOU KNOW THAT YOU HAD
TO GO TO A SPECIALTY COMPANY
OR COMPANY THAT TOOK ON THOSE
RISKS THOSE SAME COMPANIES
TODAY THEY WON'T TOUCH PROP
THOSE PROPERTIES AT THE
PROTECTION CLASS CAN STILL BE A
TEN BUT WHAT'S GOING ON BEHIND
THE SCENES IS WHAT'S CALLED
MAPPING SO THE THING ABOUT MAPS
IN WHO IS IN A FIRE PROTECTION
CLASS I COULD TELL YOU RIGHT
NOW INSURANCE COMPANIES THEY
KNOW THAT BECAUSE THE SECOND
I PUT IT ADDRESS INTO THE
COMPUTER IT'S GOING TO TELL ME
THAT PERSON CAN GET IS IF THAT
PERSON QUALIFY TO GET INSURANCE
WITH THAT CARRIER NOT BECAUSE
THE FIRE DEPARTMENT BECAUSE
PROTECTION CLASSES WERE BASING
YOUR FIGHT APARTMENT AT THEIR
FULL TIME IF THEY CAN BE THERE
WITHIN THREE MINUTES IF YOU'RE
WITHIN FIVE MILES AWAY IF YOU
GOT TO HIDE WITHIN IT DOESN'T
MEAN YOU COULD GET A DECENT
RIGHT BUT NOW DOESN'T REALLY
MATTER ANYMORE BECAUSE SOMEBODY
WHO DRAW UP A MAP IT SAYS YOU
GOT TOO MANY TREES AROUND YOU
CALIFORNIA'S ABOUT TREES AND
THE LOOK BUT CALIFORNIA TREES
I UNDERSTAND ARE DESIGNED TO
BURN EVERY FEW YEARS WHERE
STATE THAT BASICALLY BURNS
ITSELF EVERY FEW YEARS SO
IT'S JUST WHERE WE LIVE SO
WHY CAN'T WE MAKE THOSE MAPS
AVAILABLE SO THAT THESE GUYS
THESE REPORTS HE SAID YOU'RE
IN A FLOOD ZONE OR YOU'RE IN
A FIRE HAS ITS OWN SO PEOPLE
HAVE THAT KNOWLEDGE OF FRENCH
SO THEY CAN'T OPEN NOTICE A
LATER ADDED NO OKAY SO BUILDING
CODES SHOULD BE HIGHER AS FAR
AS THE STANDARD THE OTHER THING
IS PEOPLE TALK ABOUT RATES A
LOT OF TIME SOMEBODY TO COME
TO THE RIGHT AND JUST SAY I
GOT A GUY WHO'S BUYING A HOUSE
AND HIS INCOME IS RIGHT THERE
HE COULD ONLY AFFORD TO SPEND
SIX HUNDRED AND TWENTY THREE
DOLLARS FOR HOME RESISTORS
OTHERWISE HE CAN GET A HOUSE
AND THEN I AND THEN I ALWAYS
FEEL TERRIBLE BECAUSE I GOT
TO SAY HEY YOU KNOW THE TO GET
TO WHERE HE NEEDS TO BE IT'S
GOING TO BE EIGHT HUNDRED BUCKS
IF I START SHAVING AND TAKING
OFF THINGS THAT BASICALLY NOW
HE DOESN'T HAVE REPLACEMENT
COST OF PERSONAL CONTENTS AND
AND THINGS LIKE THAT I HAVE
TO TALK TO THESE GUYS TO SAY
HEY YOU NEED TO SIGN SOMETHING
THAT SAYS YOU KNOW YOU DO NOT
HAVE THIS RIGHT I MEAN SO IF
PEOPLE ARE NOT WILLING TO BE
COVERED PROPERLY THEN MAYBE IT
SHOULD BE A REQUIREMENT THAT
WE SHOULD HAVE SIGNATURES SO
THEY CAN COME BACK LATER OKAY
YOU KNOW BECAUSE BERNIE A LOT
OF PEOPLE DO IT FOR THAT REASON
HOUSE YES MORE TESTIMONY TO
HEAR SO ANYTHING ELSE YOU WANT
TO SUM UP SECOND YEAH ANYTHING
ELSE WE'VE MADE WONDERFUL
SUGGESTIONS I THINK WE'VE TAKEN
ALL DOWN OKAY NOT THINK THOSE
WITH THE THINGS I WAS THANK YOU
FOR COMING AND PARTICIPATING
I THINK YOU'VE MADE SOME VERY
GOOD SUGGESTIONS OF THAT YOU'RE
WELCOME OKAY NECK NEXT WITH US
HI MY NAME IS BOB LANES AND
-- MY WIFE AND I BILLS ARE
HOLDING BACK THIRTY FIVE YEARS
AGO AND NOW ON THE TIME OF THE
FIRE WE DON'T ALLOW ANYBODY
NOW WE ARE VERY UNDER
INSURED -- NOW DAY WINE --
WE HAVE NEIGHBORS WORK ON
THE WEEKLY BASIS ON A BI
MONTHLY BASIS AND NINETY
SEVEN PERCENT OF US ARE ALL
UNDERINSURED -- ALSO LIKE
EVERY ASPECT OF THE THREE
THE GENTLEMAN HERE MISTER
LARSON MR WOODY AND MISTER
ROGERS TALK TO US ABOUT IT
YET SEVEN ADJUSTERS FOR CARS
BECAUSE OF COLLECTIBLE CARS
THEN I HAVE ANOTHER ADJUSTER
FOR ALL OF THE CARS THAT WE
DRIVE THEN -- WE HAVE THREE
-- ADJUSTERS FOR A HOME
AND THEN ONE FOR CONTENTS
BUT ANYWAY RE ARTISTS --
UNDERINSURED OR HOME ANGRY
-- LAWSUIT WAS TO AFFRONT
TO FILL IN FOR TWO POINT
FIVE MILLION DOLLARS YOU
JUST BARELY GET HALF OF THAT
FOR MORE INSURANCE COMPANY
THERE HAVE JUST A LOT OF PUSH
BACK WITH THE INSURANCE COMPANY
THEY HAPPEN TO HAVE STATE FARM
-- WANTED TO PUSH BACKS IS CORD
ENFORCEMENTS AFTER THE FIRE
OF VOCAL AND MY WIFE WAS KEEN
ENOUGH TO HAVE FIFTY PERCENT
OFF THE -- CODE ENFORCEMENT
AND WE DON'T WE HAVEN'T
EVEN SEEN ANY OF THAT YET
--
ONE OF OUR NEIGHBORS
ACCEPTED A BID AND IS JUST
HEARSAY FOR FIFTEEN HUNDRED
DOLLARS A SQUARE FOOT
SO MY WIFE AND I REALLY UPSET
WE WENT TO -- JOHN TO REVIEW
SISTERS OFFICE IN THIS COUNTY
AND WE EXPLAINED EVERY YOU
ARE NOT ABLE TO AFFORD FIFTEEN
HUNDRED SQUARE FOOT AND THE
OFFICE SAID THE THIRTY TWO
THOUSAND DOLLARS A SQUARE FOOT
SO ANYWAY I'M I'M HERE YOU'RE
REALLY NOT TO BE AGGRESSIVE
ABOUT IT THIS JUST THE
SUBTLE COMPLAIN IT'S BEEN
A YEAR NIGHTMARE FOR US --
HURLEY'S HAVE ENOUGH SLEEP AT
NIGHT ACCOUNT AND DEPRESSED --
IF I DO GO TO A DJIA -- MEDICAL
DEVICES IF THEY'VE TOLD ME
GETS A MA'AM ANTI ANXIETY DRUGS
GETS -- THE ANTIDEPRESSANT
DRUGS THAT DOESN'T HELP ME
OKAY SO I JUST WANNA LET YOU
KNOW AND -- HAS A SENATOR DODD
AND ALSO NEW PEOPLE ARE OR
-- YOU WERE A NEW YOU LEARN
YOU IS SUPERVISOR IN A YEAR
SENATOR AND ALSO THE STATE
ASSEMBLY I WANT YOU TO HEAR
ABOUT US AND NOT TO SPEAK
THANK YOU BOB SORRY FOR YOUR
LOSS AND YOU DO HAVE TO GREAT
ADVOCATES ON YOUR BEHALF I
CAN TELL YOU THAT YES SIR
MY NAME IS STORED FUNK I
TO LIVE ON THAT LIST PEAK
ROAD ARE USED TO HAVE A NEW
JOB AND I'M THINKING ABOUT
PRINTING BUSINESS CARDS FOR
IT IT'S CALLED FIRE VICTIM --
I REITERATE AND SUPPORT THAT
WHAT'S BEEN SAID BEFORE ME BY
THE PUBLIC COMMENTS THEY'RE
THEY'RE PRETTY ACCURATE OUR
INSURANCE COMPANIES TRIPLE
A REFUSE TO GIVE US MORE
INSURANCE EVER RECORDS OF THE
FACT THAT WE ATTEMPTED TO BUY
INSURANCE KNOWING I'M I'VE BEEN
IN THE REAL ESTATE BUSINESS
FOR THIRTY FIVE YEARS WE KNEW
THE CONSTRUCTION COSTS HERE
WERE FAR IN EXCESS OF WHAT
TRIPLE A WAS ALLOWING SO WENT
TO MY AGENT EVERY YEAR THEY
SAID WHAT YOU HAVE AN EXTENDED
POLICY OF A HUNDRED AND FIFTY
PERCENT A SO THERE'S NOT GOING
TO COVER IT I ARGUED ARGUED
THEY SAY WE USE A NATIONAL
SOME KIND OF AN AVERAGE THEY
WOULD NEVER PROVIDE ME WITH
THE FORMULA LONG STORY SHORT
I WON'T BORE YOU WE WERE
UNDER INSURED BECAUSE OF THAT
FACTOR USA A WHO WE TRIED TO
SWITCH INSURANCE COMPANIES RED
LINES OUR AREA TRIPLE A USED
TO REDLINE AND AS DID OTHER
COMPANIES IN THE PAST AND I
GUARANTEE YOU THIS IS A THIS
IS A SUBJECT THAT YOU'RE GOING
TO REVISIT IS -- COMPANIES
REDLINING THESE AREAS OR
MAKING IT IMPOSSIBLE IF I GO TO
REBUILD AND MY ASSURED THAT I
WILL BE ABLE TO BUY AFFORDABLE
INSURANCE IN THE FUTURE IF I
A REBUILD AND THE AVERAGE AGE
ON OUR MOUNTAIN WAS SEVENTY
YEARS ALL AVERAGE MALE LIVES
TO EIGHTY TWO AND A HALF AND
I THINK I'VE AGE TEN SO I'VE
GOT ABOUT FIFTEEN MINUTES LEFT
I GUESS THAT LET'S ASSUME I
REBUILD AND AT SOME POINT I
NEED TO SELL THIS PROPERTY
I LIVE IN A RIDGE TOP AND --
THE NEW GUY CAN'T BUY INSURANCE
NOW WHAT DO I DO I WANT TO
SPEAK TO ONE OF THE THINGS I
THINK IT'S GOING TO BEAT THIS
TO DEATH BUT -- ON THE LOSS OF
USE -- I GOT CUT OFF BECAUSE
THEY'VE DECIDED THEY'VE ALREADY
PAID TOO MUCH THOUGH THERE'S
ANOTHER COUPLE HUNDRED THOUSAND
SITTING THERE THEY'RE NOW
SAYING YOU'RE RUNNING OUT OF
TIME YEAH HAVEN'T READ BILL YOU
HAVEN'T SUBMITTED PLANS I HAVE
MOVED SIX TIMES AND I'M GONNA
HAVE TO MOVE A SEVEN TIME AND
THERE'S NOTHING TO RANT THIS
WILL GO OUT BY HOUSE THERE'S
SOME COMING FROM THIRTY ACRES
THREE THOUSAND SQUARE FEET
AND A TRACK HOUSES A MILLION
DOLLARS AND -- BY THE WAY
THERE'S BIDDING WARS THIS IS
NOT A GOOD MARKET FOR SOMEONE
TO HAVE HIS HOUSE BURNT DOWN
LET ALONE FIVE THOUSAND PEOPLE
ANOTHER ISSUE AND I AND I'LL
LEAVE IT AT THIS IS THE --
REPLACEMENT VALUE -- INS I GET
IT INSURANCE COMPANIES DON'T
WANT FRAUD -- BUT HOW IT'S MISS
REPRESENTED AN ANIMAL USE THAT
TERM BECAUSE I TRULY BELIEVE IT
IS THE REPLACEMENT COST IS IS
BASED ON YOUR HONESTY AND UNDER
PENALTY OF PERJURY YOU'RE GONNA
SAY I LOST SO MANY SOCKS I
MEAN KAREN SOCKS FOR TEN MONTHS
I HAVEN'T DONE ANYTHING ELSE
BUT MAKE LESS WE'VE GOT FIFTY
PAGES OF SINGLE SPACED STAFF
WHAT THEY DO WHEN YOU TURN IT
IN IS THEY THEY DEPRECIATE I
REPLACEMENT COST I GOT AS MUCH
AS I GET BY BUT THEY LIMITED ME
BASED ON A FORMULA BASED ON THE
COST PER SQUARE FOOT SO I'M WAY
UNDER INSURED THERE AFTER THE
DEPRECIATED THEY HAND THERE ARE
THE HAND YOU A CHECK FOR THE
DEPRECIATED VALUE EVEN THOUGH
I HAVE REPLACEMENT COST THE
ONLY TIME THAT I CAN GET TRUE
REPLACEMENT COST HAVE TO OUT
BY EVERYTHING NOW WE'RE TALKING
ABOUT THIRTY ACRES OF STUFF IF
I MOVE INTO TOWN WHERE MY GONNA
PUT FIFTEEN CHORDS OF FIRE
WITHIN THE COMMUNITY THE BAND'S
FIREPLACE WHERE AM I GOING TO
PUT THE THINGS I INHERITED FROM
TWO HOMES WHERE AM I GONNA AYE
SOME OF THAT STUFF TO REPLACE
IT WAS SOLD TO US AS A AS A
POLICY THAT AND ALMOST EVERYONE
I'VE TALKED TO IT'S BASED ON
A KITCHEN FIRE NOT A DISASTER
AND YOU BASICALLY SEE PEOPLE
GOING OUT AND BUYING TENS OF
THOUSANDS OF DOLLARS WITH THE
STAFF TURN IN THEIR INSURANCE
COMPANY GETTING FINALLY THAT
REPLACEMENT COST AND TAKEN
BACK TO THE STORE MY INSURANCE
ADJUSTER THIS IS NUMBER FOUR
SAID GOING CRAIGSLIST AND
SELL EVERYTHING THAT YOU DON'T
NEED AND YOU'LL HAVE A LITTLE
MORE MONEY LEFT OVER SO THAT
WOULD BE YET AT A SECOND OR
THIRD JOB OR WHATEVER IT IS
I AM SO SOMETHING NEEDS TO
BE DONE ABOUT HOW THIS --
REPLACEMENT COST IS IS PAID
OUT I WAS ASSURED I LOST
SOMETHING I WOULD BE PAID
SIMILAR TO A CAR ILLUSION
CHEVROLET YOU CAN BUY A FORD A
CHEVY OR GO ON VACATION THAT'S
THE WAY IT WAS SOLD AS NOT
REALITY NAY THANK THANK YOU
THANKS FOR COMING AND SHARING
YOUR STORY WITH US TODAY
WE'VE HEARD SOME GREAT
TESTIMONY IN A VERY MUCH
APPRECIATE HEARING FROM THE
CONSUMERS THAT ARE HERE MY
NAME'S JOEL OUT SURE I'M THE
CHIEF DEPUTY FOR THE CALIFORNIA
DEPARTMENT OF INSURANCE I
WORK FOR COMMISSIONER DAVE
JONES AND I WANNA THANK THE
COMMITTEES FOR BEING HERE AND
AND LISTENING TO EVERYONE I
VERY MUCH APPRECIATE THAT I
WANT TO GIVE A SPECIAL THANK
YOU TO ASSEMBLY MEMBER AND
COLLECT KERRY AND AND SENATOR
DODD AND SENATOR LARA WHO HAVE
SOME SOME BILLS THAT -- HAVE
MATED IN THE LAW THAT BOWL WILL
HELP PEOPLE IN THE FUTURE I
VERY MUCH APPRECIATE THAT FOR
-- AND NICELY WRITTEN PAPER
SUMMARIZING -- THE ISSUES HERE
AND -- LISTING OTHER BILLS THAT
MADE IT INTO LAW WE APPRECIATE
THOSE MANY OF THEM OF COURSE
DIDN'T MAKE IT IN THE ORIGINAL
FORM THAT THEY STARTED AND WE
CERTAINLY WISH -- SOMETHING
CLOSER TO THE ORIGINAL HAD
HAPPENED ALL SAY THANK YOU TO
SENATOR MCGUIRE FOR THE BILL
THAT DIDN'T MAKE IT THAT ALSO
WOULD HAVE BEEN OF GREAT HELP
TO HIS CONSTITUENTS -- I REALLY
APPRECIATE SENATOR DODD WHO
OBVIOUSLY IS CONTINUING THIS
FIGHT FOR HIS CONSTITUENTS
AND FOR ALL CALIFORNIANS
AND THAT'S WHO WE REALLY
ALL REPRESENT HERE YOU KNOW
WE'RE NOT HERE TO JUST THINK
ABOUT OUR CONSTITUENTS ARE
THE ONES WHO ARE AN IMMEDIATE
NEED BUT REALIZE WERE IN FIRE
PRONE STATE AND WE ALL MAY
NEED THESE PROTECTIONS AS WE
MOVE FORWARD OF THE PANELS
WERE TERRIFIC AND LAID OUT --
GREAT FACTS FOR US -- I JUST
REALLY WANT TO ADD ANOTHER
SPECIAL THANK YOU TO AMY BACH
AND UNITED POLICY HOLDERS WHO
WERE OUT IN THESE COMMUNITIES
CONSISTENTLY NOT JUST RIGHT
BEFORE OR RIGHT AFTER BUT ON
AND ON AND REALLY HELP THAT
EFFORT MY MAIN PURPOSE IN BEING
HERE TODAY AND I'M HERE WITH A
COUPLE OF MY COLLEAGUES WAS IF
ANYONE HERE WANTED TO TALK TO
THE INSURANCE DEPARTMENT AFTER
THIS AND I KNOW YOU MIGHT HAVE
TO GO HOME OR WHATEVER FOR THE
CONSUMERS ARE THOSE OF HAD A
A CLEAN THAT YOU WILL COME AND
ASK US YOUR QUESTIONS BUT YOU
CAN ALSO GO TO INSURANCE DOT CA
DOT GOV AND -- YOU CAN FIND ARE
-- WAY TO FILE YOUR COMPLAINT
SUBMIT YOUR PAPERWORK WE ARE
THERE FOR ALL CALIFORNIANS
WE ARE TRYING TO HELP WHAT
WE'RE HELPING HUNDREDS OF
CLAIMANTS NOW SO YOU CAN REACH
OUT AND IT IS A FREE SERVICE
TO CALIFORNIANS I HOPE MORE
PEOPLE WOULD TAKE ADVANTAGE
OF IT I THINK ONE OF THE TAKE
AWAYS WERE HEARING HERE IN
TERMS OF AN ISSUE IS THAT THE
COVERAGE EIGHT LIMIT THE LIMIT
ON THE DWELLING MISSILE BE MY
LAST COMMENT APPRECIATE THE
TIME COVERAGE A WHERE ALL THE
OTHER COVERAGES FLOW FROM THAT
LIMIT IN TERMS OF PERCENTAGE
OF COVERAGE A THAT SHOULD
NOT BE A PLACE WHERE INSURERS
ARE COMPETING FOR BUSINESS
BY COMING UP WITH DIFFERENT
AMOUNTS FOR REBUILDING WHICH
SHOULD BE BASED ON THE MOST
ACCURATE AVAILABLE INFORMATION
TO GET THAT COVERAGE RIGHT
AND WE PROBABLY HAVE WAY FEWER
CONSUMERS WITH ISSUES AND WE
HAVE A A MORE FAIR COMPETITIVE
MARKET PLACES WELL SO THOSE ARE
MY COMMENTS THANK YOU THANK YOU
JONES AT THAT THANK YOU TO THE
YOUR DEPARTMENT OF INSURANCE
FOR ALL THE WORK THAT YOU DO
TO HELP CONSUMERS US ESPECIALLY
DURING THESE DIFFICULT TIMES SO
WITH THAT -- WE HAVE ADDITIONAL
WITNESS YES YES SIR YOUR MINDS
NOT TOO LONG ON THE MY NAME'S
CHOCOLATE MEN NAPA RESIDENT AND
-- YEAH WE WERE AFFECTED BY THE
FIRE BUT ARE MY B.
P. WAS UP ALL I I'M NOT EVEN
SURE IF ANYTHING HAS BEEN DONE
ABOUT THIS BUT A MORE FOCUSED
ON MITIGATION IS ANYTHING
THAT'S BEEN DONE IN TERMS OF
STATE AERIAL VIEWING OF -- OF
THE COUNTY AND THE CITIES IN
TERMS OF AVOIDING FUTURE FUTURE
FIRES OF SUCH AS -- EARLY
DETECTION AND STUFF LIKE THAT
BECAUSE THE REASON I BRING THIS
UP IS I'M INVOLVED WITH THE
IF YOU IF YOU ASIAN COMPANIES
THAT HAVE REALLY ECONOMIC
-- THE SOUND SUGGESTIONS AND
PROPOSALS SO I'M JUST HOPING
THAT WHEN THAT COMES UP --
WITH YOUR LEGISLATION AND
THE POWER THAT YOU HAVE YOU
COULD BE ABLE TO BE A LITTLE
MORE LENIENT WHEN IT COMES
TO A COMPANY THAT'S TRYING TO
PREVENT FUTURE FIRES OKAY THAT
EXCUSE ME YES ABSOLUTELY YEP
THANK YOU CHARLIE THANK YOU
FOR COMING IN AND SHARING YOUR
-- THE WORK THAT YOU'RE DOING
THERE ALL RIGHT WITH THAT I'M
GONNA CLOSE THE PUBLIC HEARING
I WANT TO THANK THE MEMBERS OF
THE COMMITTEE -- THE WITNESSES
AS WELL AS THAT MEMBERS OF
THE PUBLIC WHO CAME TO SHARE
THEIR THEIR STORY I KNOW MANY
OF YOU HAVE VERY BUSY LIVES
IN YOUR PRESENCE HERE TODAY
IS VERY IMPORTANT ID OF REYES
MANY CRITICAL ISSUES AND I
KNOW AS GIVEN ALL OF US A
LOT TO WHAT I THINK ABOUT AND
ALTHOUGH WE HAVE HEARD MANY
WILD FIRE BILLS THIS YEAR I
THINK WE STILL HAVE WORK TO DO
-- THERE'S A LOT OF UNDERLYING
ISSUES THAT HAVE BEEN RAISED
TODAY ABOUT THE DIFFICULT
CLAIM PROCESS AND THE LACK
OF ADEQUATE COVERAGE AND NOW
IT HAS ALL OF OUR ATTENTIONS
WHATEVER OPTIONS THAT WE
DECIDE TO PURSUE -- WILL DO
THE PARTICIPATION OF EXPERTS
IN COOPERATION AMONG ALL THE
STAKEHOLDERS SO I LOOK FORWARD
TO LOOKING AT ALL THE QUESTIONS
THAT HAVE BEEN RAISED TODAY
WORKING WITH MY COLLEAGUES IN
THE SENATE AND THE ASSEMBLY
SIDE I WANT TO DECLARE THANK
GOD CHAIRMAN DAILY -- AND THE
STAFF OF THAT THE ASSEMBLY
INSURANCE COMMITTEE IN THE
SENATE INSURANCE COMMITTEE THAT
PREPARED ALL THE MATERIALS AND
THE WITNESSES THAT WE HAD TODAY
IF YOU LIKE THE BACKGROUND
INFORMATION THAT WAS PROVIDED
TO ALL OF US AT THIS HEARING
AND YOU'RE LISTENING YOU
CAN GO TO AN INSURANCE PAGE
-- IT AND THE SENATE -- AND
THAT -- DOCUMENT IS AVAILABLE
FOR YOUR -- FOR YOUR REVIEW
AND HAS WONDERFUL BACKGROUND
ABOUT THE WHOLE SCOPE WITH
THIS PROBLEM -- THIS PROBLEM
SO WITH THAT MEMBERS THANK
YOU FOR TAKING THE TIME OUT
OF YOUR BUSY DAYS TO BE HERE
WAS A ROBUST HEARING THAT I
APPRECIATE YOUR PARTICIPATION
WERE RICHER FOR IT AND WE
HAVE A LOT OF WORK TO DO IN
THE IN THE YEAR AHEAD WITH
THAT THE MEETING IS ADJOURNED