Insurance
For 30 years, Consumer Watchdog has been the nation's leading insurance reform organization. We have saved consumers billions of dollars, developed innovative consumer programs and reversed some of the most anti-consumer insurance policies in the industry.
In 1988, Californians revolted against excessive auto, homeowner and business insurance premiums and passed Proposition 103, a ballot measure written by Consumer Watchdog founder Harvey Rosenfield to rein in insurance companies. Using the provisions of Prop 103, Consumer Watchdog has challenged rate hikes and lowered insurance rates by billions of dollars. The insurance reform has saved Californians over $100 billion over the last thirty years according to the Consumer Federation of America. California is the only state where auto insurance rates have gone down in real dollars over the last three decades. It's also the only state to ban ZIP-code based auto insurance, which Proposition 103 also did.
Today, Consumer Watchdog's legal team and advocates scrutinize all major rate hike proposals made by auto and home insurers in California and play an integral role in many of the regulatory actions enacted by the California Department of Insurance.
We use our experience to show how regulation can work to save consumers and spur competition, as California has the most robust auto insurance market in America.
Focus Areas:
Consumer Watchdog Seeks Disclosures Regarding Influence-Peddling Scandal Under Public Records Act
Los Angeles, CA -- The non-profit, non-partisan Consumer Watchdog gave California Insurance Commissioner Ricardo Lara until July 31 to produce public records related to his meetings with insurance industry representatives who gave him $54,300 in campaign contributions in a letter sent late last week.
California Insurance Commisioner Ricardo Lara Receives “D” Average on Report Card
table, th, tr, td {
border: 2px solid black;
}
Los Angeles, CA – California Insurance Commissioner Ricardo Lara, who has approved $292 million in auto and homeowners’ insurance rate increases since being elected, has received a “D” average from the nonprofit group Consumer Watchdog on his first four-month report card.
Consumer Watchdog Applauds New California Rules Ending Gender-Based Discrimination in Auto Insurance Pricing
Los Angeles, CA – California auto insurers may no longer charge drivers more based on their gender under new rules just issued by the California Department of Insurance.
The rules bring auto insurance prices into line with the provisions of voter-approved Proposition 103 that prohibit unfair and discriminatory pricing and require rates to be based primarily on a person’s driving record and experience, not personal characteristics.
Top 10 US Insurance Companies Invest $51 Billion In Fossil Fuels
Los Angeles, CA — As a UN panel finds the world is losing the war with global warming and urgent action is needed, US insurance companies have reported holding more than $50.9 billion in fossil fuel investments that exacerbate climate change, according to reporting to national insurance regulators.
Consumer Watchdog’s review of public filings reveals nine of the 10 largest American insurance companies have considered the impact of climate change on their investments, but only two, AIG and Farmers, say that they have altered their investment strategy in response.
Release of Lara's Calendar and Public Records Suggest Lara Made First Contact In “Pay to Play” Insurance Scandal
UPDATE: 9/20 Consumer Watchdog sent this letter to the California Attorney General and District Attorneys for Sacramento, San Francisco and Los Angeles along with the information below.
Consumer Watchdog Asks Attorney General And DAs To Investigate CA Insurance Commissioner Over Apparently Illegal Payments For Second Home In Sacramento
Los Angeles, CA – Following a Politico report that California Insurance Commissioner Ricardo Lara billed the state for his Sacramento apartment, Consumer Watchdog has called on Attorney General Xavier Becerra and the District Attorneys for Sacramento, Los Angeles and San Francisco counties to launch an investigation over the potential theft of public funds.
Ricardo Lara’s Troubles Aside, Reverting To An Appointed Insurance Commissioner Would Hurt Consumers
Where the troubling trail of accusations dogging Insurance Commissioner Ricardo Lara will lead is hard to tell. State records show that insurance industry executives and their relatives gave tens of thousands of dollars to Lara’s campaign committee–even as he intervened on their behalf in cases before his agency.
We’ll know more on Aug. 31. That’s when Lara has promised to make public his communications and calendars of meetings with the executives.
Consumer Watchdog Identifies Three Homeowner Insurance Rules Insurance Commissioner Ricardo Lara Can Issue Immediately
Los Angeles, CA– In a letter sent today, Consumer Watchdog called on Insurance Commissioner Ricardo Lara to use the full authority of his office to preserve Californians’ access to home insurance.
CA Supreme Court Puts an End to Mercury Insurance Company’s 20-Year Battle to Escape Accountability for Unlawful Fees
Los Angeles, CA -- Mercury Insurance Company will pay at least $27.6 million in civil penalties for overcharging hundreds of thousands of California motorists in violation of insurance reform Proposition 103. Late yesterday, the California Supreme Court rejected the company’s last-ditch effort to evade the fine – the largest ever against a car insurance company in California.
Vote Cancelled on Commissioner Lara’s “Creative” Wildfire Insurance Bill
Sacramento, CA – A wildfire insurance bill sponsored by Insurance Commissioner Ricardo Lara stalled in the state Assembly today in the face of objections raised by the Department of Finance and Consumer Watchdog that the bill would expose taxpayers to unnecessary financial risks.
Advocates Call for Withdrawal of Insurance Commissioner Lara’s Bill to Give Insurers & Wall Street Blank Check From CA Taxpayers
Los Angeles, CA -- Consumer Watchdog said legislation sponsored by Insurance Commissioner Ricardo Lara and scheduled for a vote Wednesday would needlessly expose California taxpayers to the same kind of complex and risky financial instruments that led to the 2008 financial crisis.
The bill would allow the state to purchase insurance and other financial products with none of the usual state oversight, including insurance regulation by Commissioner Lara’s own Department of Insurance and procurement rules at the Department of General Services.
