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:
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.
Insurance Commissioner Lara Delays Calendar Release Another Month
Los Angeles, CA – Insurance Commissioner Ricardo Lara’s office will delay disclosure of the Commissioner’s calendar or records of his meetings with insurance companies to August 31st, according to a communication sent to Consumer Watchdog.
Commissioner Lara said that he would disclose his calendars in response to revelations that he took $54,300 in campaign contributions from insurance executives and their spouses, took actions that benefited the insurance company connected to three of those donors, and met with the company’s CEO.
Insurance Commissioner Ricardo Lara’s speech to the insurance industry
Watch the video of California Insurance Commissioner Ricardo Lara addressing insurance industry lawyers in Hollywood on July 25, 2019. The video was posted by Politico to accompany their July 29, 2019 story:
POLITICO: Lara tells insurers he's 'receptive' to their ideas, including vehicle data use.
New Evidence Shows Lara Intervened For Insurance Donors
Los Angeles, CA – Reporting published in the San Diego Union Tribune Saturday reveals that California Insurance Commissioner Ricardo Lara intervened on the side of a workers’ compensation insurer on at least four separate occasions after receiving contributions from insurance executives and their wives with connections to the company.
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.
Insurance Commissioner Lara Gives Insurance Industry Money Back, But Questions Remain About Circumstances Of Influence-Peddling At Agency
Los Angeles, CA -- Consumer Watchdog said Insurance Commissioner Ricardo Lara’s decision to return over $54,000 in contributions from donors tied to a company seeking the Commissioner’s approval for an acquisition was an “important first step that protects the credibility of the elected position you hold.” The non-profit advocacy organization urged the Commissioner to return the money in a letter yesterday.
CHUBB's Big Move To Stop Insuring Coal Projects Leaves CA Behind
On Monday the insurance company CHUBB announced it would no longer underwrite coal-based power plants and companies that get more than 30% of its revenues from coal power.
California Insurance Commisioner Ricardo Lara Receives “D” Average on Report Card
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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.
