🚀 go-pugleaf

I have a general question about renter's insurance in CA. My roommate 
and I have renter's insurance (Farmer's) which covers theft, fire, etc. 
with a $250 deductible.  My roommate had her bicycle stolen, and 
proceeded to file a claim w/ the ins. co.  She was told that although 
they would pay for a replacement bike, Farmer's would most likely cancel 
our insurance in September when the policy expires.  The reason:  "company 
policy."  She (my roommate) was told that since the premium is only 
~$250, and Farmer's would have to fork over ~$250, they weren't making money, 
and after all, "insurance is a business."  No shit, Sherlock!  In addition, 
the insurance agent told my roommate that if we had other Farmer's 
insurance, e.g., auto, life, etc., it would be a different story.

OK, my question is, is this legal?  Probably.  Is it moral?  Hey, we're 
talking about insurance agents--people who were kicked out of law school 
for being too dishonest (can you imagine?).  I did call the CA insurance 
commisioner's office, and the person I spoke with was "surprised" that an 
agent would say this.  I believe the man I spoke with was either, (a) an 
idiot, (b) naive as HELL, or (c) about as honest as an insurance agent.

If anyone has any ideas/comments/info on the above, please post to this 
group.  Thanks for reading.

Greg C
gfcardinale@ucdavis.edu