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California's insurance commissioner has ordered some companies to refund premiums for March and April because of the coronavirus pandemic.
Monday's order from Commissioner Ricardo Lara includes insurance premiums paid for workers compensation, medical malpractice and private and commercial auto policies. Insurance companies set rates based on risk. But risk has changed because of the coronavirus. For auto insurance, fewer cars are on the road and that reduces collisions.
Lara said says the order will put money back in people's pockets when they need it most. The order could be extended if closures continue.
A representative from the American Property Casualty Insurance Insurance Association has not yet responded to Lara's order.
