Insurance Hour with Karl Susman

SummaryThe episode covers a discussion between host Karl Susman and Assembly member Heath Flora about two significant California insurance bills. The first bill, AB 637 (Deceptive Disaster Relief Advertising Act), requires disclosure from for-profit entities soliciting business after disasters. Flora, drawing from his 15-year firefighting experience, explains how this bill addresses issues with 'ambulance chasers' who exploit disaster victims. The second bill, AB 1354, would allow Californians to deduct insurance premium increases from their taxes between January 1, 2025, and January 1, 2030. Flora discusses how Proposition 103's artificial suppression of insurance rates for 30 years has led to the current crisis, with an expected 22% rate increase across the board. The discussion emphasizes the need for market competition to stabilize insurance rates in California, which is the fifth largest insurance market globally. HighlightsIntroduction and Guest Background Host Karl Susman introduces Assembly member Heath Flora, who represents the 9th Assembly District. Flora's background includes 15 years as a firefighter with Cal Fire, experience as a volunteer firefighter, and business ownership. He brings expertise in agricultural and public safety issues to his role in the assembly since 2016. AB 637: Deceptive Disaster Relief Advertising Act Flora presents AB 637, which requires for-profit entities to clearly disclose their status when soliciting business after disasters. He describes witnessing 'ambulance chasers' at disaster scenes since 2002, including the Cedar Fire. The bill mandates transparency about any connection to government agencies or insurance companies, with violations carrying a $2,500 penalty per occurrence. Consumer Protection and Implementation Discussion covers how AB 637 will protect vulnerable disaster victims from predatory practices. Flora explains that the bill applies to all forms of advertising, including social media, and enforcement will be handled by the Attorney General, Insurance Commissioner, and Department of Consumer Affairs. AB 1354: Insurance Premium Tax Relief Flora introduces AB 1354, which would allow Californians to deduct insurance premium increases from their taxes between 2025-2030. The bill aims to provide relief during the transition period as insurance rates adjust after 30 years of artificial suppression under Proposition 103. Flora discusses the expected 22% rate increase and the need to restore market competition in California's insurance sector. Market Competition and Future Outlook The discussion concludes with Flora emphasizing the importance of bringing competition back to California's insurance market. He notes that only single-digit numbers of carriers are currently writing new policies in California, despite it being the fifth-largest insurance market globally. Flora advocates for steady, predictable rate increases rather than sudden large increas Wanna text us? Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS, Spectrum, The CW and FOX, and now his popular radio program is available online throughout California and world-wide. Listeners can now tune in to Insurance Hour on great AM radio station KMET throughout the state of California. In addition to traditional radio, Insurance Hour is available on several popular streaming platforms, ensuring that listeners can access the show at their convenience. Audiences worldwide can now enjoy Insurance Hour at InsuranceHour.com, on YouTube, Amazon Music, Tuneln, Alexa, Apple Podcasts, and the iHeartRadio app. For more information about "Insurance Hour" and its programming, please contact Lara Starr at pr@insurancehour.com