Tech and real estate entrepreneur Peter Rex reacted to State Farm’s decision to cease home insurance applications in California, predicting there was an “unspoken reason” the firm made its decision. Rex joined “Fox & Friends Weekend” to discuss why he doesn’t “fully buy” the notion that the company made the move on economic grounds.Â
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PETER REX: This is a big problem, and I also… think State Farm, I read their release on their own website just to get directly to the horse’s mouth here, and I don’t fully buy it… The reasons they give are all reasons that are cost-related reasons… Inflation costs, catastrophic events, reinsurance costs going up. All of these things can be passed on to the consumer by the insurance carrier… I would note one of our technology companies is insurance tech business, and we’re still licensed in California, where we also do business. And I had run an actual business and lived out in California area as well and San Francisco before we moved out to Texas. And I think that the pretext here, these other reasons, there are real reasons, but I think there’s an unspoken reason here, and that reason is California is a very difficult place to do business. And I bet you that State Farm said, you know what, we’re done with this. We’re going to we’re going to go ahead and pull out and we’re going to give reasons that are… generally acceptable and true and legitimate, but we’re not going to state the reason that California just makes it a very difficult place for a business to operate.Â
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The State Farm General Insurance Company will no longer accept new applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation,” the company said Friday.Â
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