Kristin Rosi alleges she was fired after challenging the California Department of Insurance’s handling of rate cases and resisting improper interference in her judicial duties. Her lawsuit also alleges discrimination based on gender and sexual orientation.
By Alicia Alvarez, DAILY JOURNAL
The former chief administrative law judge for the California Department of Insurance has sued Insurance Commissioner Ricardo Lara and the department, alleging she was fired after challenging its handling of insurance rate cases and resisting improper interference in her judicial duties.
Kristin Rosi alleges that Lara and senior department officials pressured her to act unethically, communicated with her improperly about pending cases and retaliated when she objected to practices she believed violated California law.
The lawsuit, filed Sept. 18 in Alameda County Superior Court, comes amid steep insurance rate increases and growing scrutiny of the department’s oversight of insurers under Proposition 103. Kristin Rosi v. Ricardo Lara et al.,
26CV211134 (Alameda County Super. Ct., filed Sept. 18, 2026).
According to the complaint, Rosi issued eight decisions in October 2024 involving requests for compensation by consumer groups participating in insurance proceedings. She contends those cases exposed a pattern of the department settling rate matters without public hearings required by Proposition 103 or review by its Administrative Hearing Bureau.
Rosi alleges that Lara and his deputies engaged in improper ex parte communications concerning pending matters and that Lara subsequently vacated her orders after department attorneys sought reconsideration.
“By unlawfully exercising supervisory control over Plaintiff, the State acted contrary to the Insurance Code, elevated internal interests over the rights of parties appearing before the Department and sought to compel Plaintiff to violate fundamental principles of due process, judicial canon of ethics and regulatory fairness,” the complaint states.
When Rosi resisted, the lawsuit alleges, the department removed her from the chief administrative law judge position and transferred her responsibilities to Deputy Commissioner and Special Counsel Lucy Wang.
Rosi was placed on leave in January 2025 and subjected to a Department of Justice investigation, according to the complaint. She alleges she was subsequently terminated in retaliation for her objections.
Her attorneys, Wendy Musell, Maraka Willits and Katherine Smith of the Law Offices of Wendy Musell PC, argue that the dispute raises questions about the independence of administrative judges responsible for reviewing insurance matters.
“This is all in the context of unprecedented rate hikes for insurers and where Prop 103 requires judicial oversight of rate hikes over 7 percent,” Musell wrote in an email to the Daily Journal.
Musell cited the initiative’s stated goals of protecting consumers from arbitrary insurance rates, promoting competition and ensuring an accountable insurance commissioner.
The lawsuit also alleges discrimination based on Rosi’s gender and sexual orientation, violations of the Information Practices Act and whistleblower retaliation under the California Labor Code.
Musell said the department cited Rosi’s use of government email as one justification for her termination, despite allowing similar conduct by other employees.
“While Insurance Commissioner Lara’s extravagant travel and spending continued, one of the bases for Chief Judge Rosi’s termination was that she sent 28 emails, including to a professional organization for LGBTQ+ judges association,” Musell said.
She argued that other judges and employees routinely communicate with professional organizations without facing discipline.
The department declined to comment. No attorney for Lara, Wang or the department was listed on the docket, and the defendants had not filed a response as of Tuesday.
Rosi seeks actual, compensatory, treble, liquidated and punitive damages.
An initial case management conference is scheduled for Feb. 16, 2027, before Superior Court Judge Rebekah Evenson in Oakland.
Consumer Watchdog · November 11, 2026
https://consumerwatchdog.org/in-the-news/daily-journal-former-chief-insurance-judge-sues-lara-over-alleged-retaliation/
© 2026 Consumer Watchdog. Printed November 11, 2026.
