Spencer Kook Advocates for Streamlined Insurance Rate Approvals Amid State Farm's Emergency Rate Hike Request

Hinshaw partner Spencer Kook was once again cited in a media report related to California Insurance Commissioner Ricardo Lara's provisional approval of State Farm's request for an emergency interim rate increase.

In PropertyCasualty360 coverage last week, Kook shared insights on the interim rate increase request and also discussed the challenges of availability and affordability in California's property insurance market.

In a subsequent Law360 Insurance Authority story, Kook again underscored the importance of streamlining the rate review and approval process for insurers in California. He described how a quick approval of actuarially sound rates would improve insurance availability and affordability and how regulatory changes, like applying "deemer" provisions, could help expedite these approvals.

Law360 Insurance Authority excerpt:

"Focus should be given to streamlining the rate review and approval process," said Spencer Y. Kook, an L.A. insurer attorney with Hinshaw & Culbertson LLP. "Enabling carriers to get to market more quickly with actuarially sound rates will help to alleviate insurance availability issues, which in turn should assist with affordability issues."

He said that if State Farm's rate request is ultimately denied — though it appears supported — it would send the wrong signal to the industry about the commissioner's ability or willingness to act quickly and reasonably. That would further disincentivize carriers from continuing to stay and grow in California's market at a critical time, Kook said.

To help speed up the rate approval process, Kook said, California regulators should consider more rigorously applying statutory "deemer" provisions that expressly allow for the approval of rate changes below a certain threshold after a statutory notice period.

"This approach would help carriers get to market with appropriate rates more quickly and alleviate the burden upon the department so that it may prioritize more significant rate change requests, while preserving its ability to later revisit the use of an approved rate if circumstances warrant it," Kook told Law360 in written comments.

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• Law360 Insurance Authority: "State Farm's Calif. Rate Request Exemplifies Long Negotiation" (March 20, 2025)