I’m excited to share my experience from the Big I National Legislative Conference in late April. First, our association was the recipient of the Maurice Herndon Award for our exemplary work on legislative issues and government affairs. A huge honor and kudos to our IIABCal staff including a special shout out to Steve Young, general counsel, for his impactful advocacy work.
Eleven of us from California went to Capitol Hill and met with the offices of both senators and six representatives to advocate for federal tax issues, disaster mitigation tax credits, third party litigation funding transparency and crop and flood insurance. I extend my gratitude to the local associations of San Fernando Valley, Sacramento, and San Diego for their involvement. Our time was both insightful and enjoyable, leaving a positive impact on me. I encourage everyone to participate in such conferences to advocate for our industry.
Benefits of attending include:
Advocacy and Influence: Shape policies and regulations by presenting industry perspectives to lawmakers.
Networking Opportunities: Connect with industry professionals and policymakers to foster beneficial collaborations.
Staying Informed: Gain insights into legislative changes affecting the insurance industry.
Professional Development: Enhance understanding of legislative issues and improve advocacy skills.
Visibility and Reputation: Boost your organization’s profile as an engaged industry leader.
Collective Voice: Unite with industry representatives for more effective policy influence.
Feedback and Input: Provide input on legislation to better serve the industry and clients.
My participation was rewarding, and I heard similar sentiments from our other California participants. I believe we can make a difference and hope you seize the opportunity to do the same.
CEO Corner
6 Weeks of Meetings in 5 Fun-Filled Days!
Thank you to the agents and companies that attended the 2025 Blue Ribbon Conference! We are always thrilled that attendees felt their time was well-spent – lots of networking and in-person meetings, along with social events that fostered relationships. In addition, we were pleased to host speakers presenting on self-limiting beliefs, AI technology, reinsurance, leading in an insurance company C-suite, and resilience. Click here to see the fun we had!
We hope you will join us next year in our new home at the Westin Maui! Same great conference, vibrant new location!
Jill Epstein
CEO
IIABCal
IIABCal Advocacy
Commissioner Lara approves State Farm “Emergency” Rate Increase
California Insurance Commissioner Ricardo Lara has approved State Farm General’s request for an “emergency rate increase” of 17 percent, which requires an infusion of $400 million by State Farm’s corporate parent to address the California subsidiary’s financial distress.
The emergency rate increase will take effect June 1, but is subject to modification or even rescission following a full rate hearing. An administrative law judge (ALJ) issued a decision May 13, following a public hearing held April 8-10, finding that State Farm had preliminarily justified its need for emergency rate relief. The ALJ’s order approved a 17% interim rate increase for State Farm’s homeowners line, reduced from the 21.8% the company requested and requires the company to secure a $400 million surplus note from its parent company to reinforce its solvency. The company has also agreed to refrain from implementing new block non-renewal programs through the end of 2025.
The ALJ found that “the evidence presented in the hearing established a prima facie showing that State Farm is experiencing extraordinary financial distress, coupled with surplus depletion that threatens ongoing business operations.”
In a press release, Lara said he had requested an independent review of State Farm’s evidence in order to ensure full consideration of State Farm and consumer arguments before a neutral arbitrator. When approving the ALJ’s decision, Lara said: “I expect State Farm provide the highest level of service to its California customers and to fulfill its promises. State Farm must now justify its financial condition and detail its recovery plan in a full rate hearing before a neutral judge and my Department’s experts. I am focused on ensuring that State Farm pays its claims to wildfire survivors fully and fairly – and nothing is off the table.”
Major labor and employment bills are progressing in the Legislature
Several key labor and employment bills remain active and under consideration in the California Assembly and Senate Appropriations Committees. Many have been referred to the Suspense File, where their fate will be decided in the coming days based on fiscal impact and political negotiations. Click here for a summary of the most relevant bills still moving forward, along with notable measures that failed to meet the deadline and are now two-year bills.
Question of the Month
Editor’s Note: Do you have a question about California law? Your answer may already be posted on the IIABCal website. We maintain a large repository of questions posed by members on a wide variety of California regulatory and other legal requirements. They are available free of charge to all members at “California Agent Question of the Month”. From the home page, go to “Member Benefits”, then “Ask an Expert”, and then “California Agent Question of the Month”.
Here is a recent sample. The answer is provided for general informational purposes only, and is NOT intended, and should not be relied upon, as legal advice for any particular situation or problem.
Question
When an individual, family or business transfer ownership of property to a “trust,” should the trust entity be endorsed onto existing policies as a “named insured?”
Answer
Yes. This issue has been the source of highly contentious litigation involving the California FAIR Plan.
The Plan policy includes an express disclaimer of coverage for unnamed people. In 2021, the California Court of Appeal upheld that exclusion, in Wexler v. California FAIR Plan, holding that the daughter of parents who lost their home in the Woolsey wildfire could not sue the Plan for “bad faith” denial of their insurance claims because she (the daughter) was not a named insured under the policy.
More recently, in a claim arising out of a total loss in the Los Angeles wildfires in January, the FAIR Plan refused to pay full policy limits to a homeowner because ownership of the home had been transferred to a family trust, and that trust was not identified as a named insured under the policy. Instead, the Plan paid the individual only the percentage of the loss that corresponded with the percentage of his interest as a trust beneficiary—leading to new litigation against the Plan that is now pending.
This is not solely a FAIR Plan issue. In any policy, it is critically important for the “named insured” to be fully and accurately identified. Because many policyholders may not think to tell their agent or broker that they have created a family trust and transferred legal ownership of their property to that trust. Consequently, it is prudent for agents and brokers to be in regular communication with their policyholders on these issues.
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Atlas’ appetite spans a wide range of industries and risk types, from main street businesses to more complex, harder-to-place accounts.
With a foundation of industry expertise and a solutions-first mindset, Atlas is proud to support its partners as a part of the IIABCal community.
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Product Spotlight
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CRC Group, a trusted name in commercial insurance for over a century, offers IIABCal members exclusive access to a robust Employment Practices Liability Insurance (EPLI) program designed to meet today’s evolving workplace risks. Backed by an A+ rated carrier, this program includes coverage limits up to $1M, low deductibles starting at $5,000, and valuable enhancements like Third Party Liability, Punitive Damages (where allowed), and full Prior Acts coverage for accounts with existing EPLI.
IIABCal members can access tips and tactics for the best ways independent agents can leverage social media as part of their marketing strategy. Download the FREE guide today!
Now Accepting 2026 Volunteer Nominations For IIABCal Leadership Positions
We are seeking dedicated members to help lead and strengthen California’s independent insurance agency system. Board and committee nominations are open through June 13 for those ready to contribute their time, expertise, and vision.
We’re pleased to announce that our 2024 Annual Report is now available for members to view on our website. The report highlights key accomplishments, financial performance, and strategic initiatives from the past year.
IBA-BGP proudly continued their annual tradition of supporting the Glendale Fire Department’s Junior Fire Program Picnic—joining local business professionals, firefighters and community leaders to celebrate fifth-grade students who excelled in fire safety education. Each year, volunteers show up early to serve, support, and make this special day even brighter for the kids. It’s great to see how they give back and represent our industry in such a practical way!
IBA SFV proudly hosted its 2nd Annual Women in Insurance event on April 22, 2025, and it was a great success! They welcomed Jill Epstein, CEO of IIABCal as the guest speaker. Jill provided valuable insights into the current state of the insurance marketplace and shared what members can anticipate moving forward.
IBA-SFV sends a heartfelt thank you to Amwins for their generous support as our Grand Sponsor. Over 40 women from across the insurance industry joined the event for a delightful brunch, meaningful networking, and exciting prize giveaways—including a spa certificate, Burberry perfume gift set, See’s Candies, and various gift cards. They’re already looking forward to an even bigger event next year!
