Curiously, the issue of whether an insurance commissioner could order a refund of already-approved rates under Proposition 103 seems never to have been tested in court; previous refunds have been arranged through settlements before an order was necessary. Also a bit murky is whether the insurance department is bound to consider a parent company's entire investment portfolio in setting rates for an affiliate. Rosenfield says the law is settled that it must, but no previous court case appears to have dealt with an entity quite as large or complex as State Farm.

Source: Los Angeles Times February 16, 2018 16:30 UTC