Elias: California insurance chief Lara too cozy with industry he regulates

"As he prepares for his last year in office, California Insurance Commissioner Ricardo Lara is going all out to make it easier for insurance companies to fulfill their wishes, doing their bidding as he usually has during seven years as the state's insurance boss. He's now under investigation by the state Fair Political Practices Commission for accepting help with campaign expenses and travel gifts, including a trip to Bermuda."

"Far more damaging to customers, he allowed the cancellation of thousands of homeowner policies, forcing most of the rejected into the state's last-chance Fair Plan, which is much more expensive than regular insurance. Now he proposes to make himself the sole arbiter of how much insurance companies can charge for property and vehicle coverage. He wants to change rules letting consumer groups scrutinize and challenge rate increases sought by companies like State Farm, Allstate and many others."

"The rules for challenges are set by California's 1988 Proposition 103, which also made the insurance commissioner an elected official with a two-term limit. Lara's tenure began in early 2019, so he must depart the office just after Jan. 1, 2027. Meanwhile, he filed a draft resolution letting himself deny payments to groups who fight proposed insurance rate increases. Thirty-six public interest nonprofits quickly urged him to withdraw that plan."

California Insurance Commissioner Ricardo Lara proposed rule changes granting himself greater control over property and vehicle insurance rates and the power to deny payments to consumer groups that challenge rate increases. He faces an investigation by the state Fair Political Practices Commission over campaign and travel gifts. Lara permitted thousands of homeowners' policies to be canceled, moving many into the costlier Fair Plan. The draft resolution would let Lara veto intervenor payments under vague standards such as 'vexacious' or 'duplicative.' Thirty-six public interest nonprofits urged withdrawal. The changes would weaken Proposition 103 requirements that companies pay intervenors' legal and expert fees.

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