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.
According to Abe Scarr, program director for energy and utilities at the Illinois Public Interest Research Group (PIRG), the Illinois Department of Insurance lacks enforcement power.
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 was filed after the state's insurance regulator made repeated requests for the information, which State Farm claims to have already provided to justify its recent rate increase.
Author's summary: State Farm's influence hampers regulators' probe.