California commissioner proposes insurance rule that critics call revenge'

"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. Those changes are meant to encourage insurance companies to keep writing new policies and discourage them from canceling policies, especially in areas of high wildfire risk. 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. Consumer Watchdog is California's most prolific intervenor; an intervenor is a member of the public who can challenge an insurer's rate request. The organization has repeatedly questioned Lara's ties to the insurance industry, from which he has received and returned campaign contributions."

Ricardo Lara proposed changes to California's insurance rate-review process aimed at encouraging insurers to issue and retain policies, especially in high wildfire-risk areas. The proposal would impose timelines and guidelines for intervenors and administrative law judges, tighten standards for what counts as a substantial contribution for intervenor compensation, and limit administrative law judges' authority in rate reviews. Consumer Watchdog and other advocates warn that the changes would make it harder for intervenors to get paid for expert work, reducing public challenges to insurer rate requests and potentially facilitating higher premiums. Lara has faced scrutiny over industry ties and litigation concerning the FAIR Plan recoupment rule.

Read at www.ocregister.com