California commissioner proposes insurance rule that critics call 'revenge'

"Last week, Lara proposed altering the insurance rate-review process in what he said is an effort to make it more efficient. But others say the changes Lara wants to make amount to retaliation against one of his biggest and toughest critics, Consumer Watchdog. "This is Trumpian," said Jamie Court, president of Consumer Watchdog, the nonprofit organization that wrote the state's Proposition 103 insurance law."

"Home insurance costs in California are likely to rise in the near future because of Lara's recent changes to the state's insurance rules. The organization has repeatedly questioned Lara's ties to the insurance industry, from which he has received and returned campaign contributions. Consumer Watchdog has sued the insurance department over several different issues, including its rule allowing the FAIR Plan - the fire insurance provider of last resort - to recoup some of its claims payouts from policyholders in the state."

"Lara's proposed changes would do the following: Impose new timelines and guidelines for intervenors and administrative law judges. Tighten requirements for what's considered a "substantial contribution" for intervenors to get compensated for their work. Limit administrative law judges' authority in rate reviews. Consumer Watchdog and other consumer advocacy organizations say those changes would make it harder for intervenors - who need to pay experts to challenge the rate requests - to be compensated."

California Insurance Commissioner Ricardo Lara proposed changes to the state's insurance rate-review process intended to encourage insurers to keep writing policies and discourage cancellations in high-wildfire areas. Critics call the rules vindictive and say they will make it easier for insurers to raise home insurance rates. The proposal would impose new timelines and guidelines for intervenors and administrative law judges, tighten requirements for what counts as a "substantial contribution" for intervenor compensation, and limit administrative law judges' authority in rate reviews. Consumer Watchdog, a frequent intervenor, has questioned Lara's ties to the insurance industry and sued over department rules, including the FAIR Plan recoupment policy.

Read at The Mercury News