House Speaker Mike Johnson suggested that disaster aid for California wildfires should come with conditions. Rep. Mike Flood (R-NE) joins Catalysts to discuss this proposal and California's insurance practices.
Flood notes that once the fires have been contained and the recovery phase begins, "We have to look at forestry management and we have to look at what choices their state has made with their insurance department."
He explains the first thing people need to do is call "their state senator and their state representative," explaining that insurance in California, specifically property and casualty insurance, is managed at the state level. Additionally, Flood highlights concerns over California’s insurance market and forest management practices.
California requires that carriers seek approval before adjusting pricing, which Flood says "takes months if approved at all." He adds that this has "distorted the insurance market and made it very difficult for carriers to offer consumers risk-based products to protect their homes."
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This post was written by Josh Lynch