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The group of fraudsters, comprised of family and friends, filed at least 33 fraudulent auto insurance claims.
The grant is a portion of the more than $50M California gave to district attorney offices across the state to combat insurance fraud.
The business owners are also accused of failing to file a workers' comp claim following an employee injury.
In addition to keeping premiums, the broker also drafted fake certificates of insurance to cover up his crime.
The lower advisory rate is below the $1.50 average proposed by the Workers' Compensation Insurance Rating Bureau of California.
State Farm is expected to maintain its leading market share in California even without writing new business, according to Fitch Ratings.
Growing construction costs, increasing catastrophe exposure and a difficult reinsurance market led to the decision, according to the company.
Prior to an increase in 2022, limits for these policies hadn't been changed for more than two decades, according to the California Department of Insurance.
Insurance companies have 180 days to submit new rate filings that take the new regulations into account.
News from Zesty.ai, expert.ai, AutoClaims Direct and more.
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