Illinois PIRG: State Farm's Influence Blocks Regulators' Probe
The Illinois Department of Insurance has filed a lawsuit against State Farm to obtain property insurance market data, citing a lack of institutional authority to compel the insurer to provide the information.
According to Abe Scarr, program director for energy and utilities at the Illinois Public Interest Research Group (PIRG), the Illinois Department of Insurance (DOI) lacks the enforcement power that other states' regulators have.
Part of regulators doing their job is not just to take the insurers word for it, but to have a better understanding of their business practices and their business practices related to how they're dealing with extreme weather.
The lawsuit, filed on October 10, seeks to compel State Farm to provide the requested data, which the insurer claims it has already provided to justify its recent rate increase.
Author's summary: State Farm's influence hampers regulators' probe.