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Insurance news, investigations, and reform — auto, home, and health insurance rates, claims denials, and industry accountability.
Who’s Afraid of Campaign Finance Reform?

Who’s Afraid of Campaign Finance Reform?

<font face="verdana,sans-serif" size="2">Arnold has always talked a good game about cleaning up cash register politics even as he has raised more campaign cash than any politician in California history. Now he has a chance to do...</font>
Major Shift in Auto Policies;

Major Shift in Auto Policies;

<h3>Rates would emphasize safety and mileage, not ZIP Codes, for drivers insured by Auto Club. Adherence to Prop. 103 is a win for Garamendi.</h3><p class="source">The Los Angeles Times</p> <p>The Auto Club's decision to deemphasize ZIP Codes is historic and sends a message to other insurers that "they can respect the wishes of the voters and make money at the same time," said Harvey Rosenfield of the Foundation for Taxpayer and Consumer Rights. The Santa Monica attorney wrote Proposition 103 and has been working ever since to see it fully enforced. "This will have tremendous consequences for the marketplace," Rosenfield said.</p>
Cingular Sued for Service Lapses

Cingular Sued for Service Lapses

<p class="source">Day To Day Radio Program (National Public Radio-NPR)</p> <p>The consumer watchdog group is arguing that these customers were charged for services that they shouldn't have had to pay for in the first place. Just last month, by the way, there was a ruling from a state appeals court in California, that it was upholding a $12 million fine against Cingular, for signing up customers faster than they could provide adequate service for.</p>
Is this the big moment?;

Is this the big moment?;

<h3>Earthquake insurance rates just dropped 22% statewide. For those who don't have coverage -- most of us -- it might be time to consider it.</h3><p class="source">The Los Angeles Times</p> <p>"With the new lower rates, it's time to go back and reconsider buying earthquake insurance because Californians are in a real precarious position without it," said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights in Santa Monica. Still, he is concerned about the high deductible -- $60,000, for example, on a house that would cost $400,000 to rebuild.</p>
Ballot measures could be pitfalls for candidates;

Ballot measures could be pitfalls for candidates;

<h3>Governor hopefuls may face backlash for taking a stand </h3><p class="source">The San Francisco Chronicle</p> <p>The clean money measure, which qualified for the ballot Monday, calls for voluntary public funding of all statewide and legislative races, paid for by a $200 million-a-year boost in the state corporate tax rate. It limits corporate, union and individual contributions to candidates to $500 for legislative candidates and $1,000 for statewide candidates. It also will provide matching money for candidates who face an opponent who doesn't agree to accept public funding or who puts his own money into the campaign. </p>
Telecom bill opposition fades;

Telecom bill opposition fades;

<h3>Cable TV operators approve amendments on competition</h3><p class="source">THE SAN FRANCISCO CHRONICLE</p> <p>Jamie Court, president of the Foundation for Taxpayer and Consumer Rights, said one amendment he supports is a plan to put the state's Public Utility Commission in charge of issuing the new state franchises. Court said, however, that giving cable companies the right to tear up existing contracts is a bad idea. "This basically robs control from more than 500 local franchises," he said. "It creates a problem that wasn't there before."</p>
Cities May Lose Hold on Cable;

Cities May Lose Hold on Cable;

<h3>A compromise on a bill to let phone giants offer pay-TV service would strip California localities of most of their power over the cable industry.</h3><p class="source">The Los Angeles Times</p> <p>Opponents argued that eliminating much of the local control over television franchises would leave customers unprotected. "It's a complete bailout for cable companies and AT&T to ramrod a bill that has no controls on either industry," said Jamie Court president of the Foundation for Taxpayer and Consumer Rights based in Santa Monica.</p>
Legally Corrupt

Legally Corrupt

<h3>Don't expect Phil or Arnold to rush to endorse the clean-money initiative</h3><p class="source">LA Weekly</p> <p>Phil Angelides has said he supports public financing of elections. Now he, and the rest of the California Democratic Party, have a chance to put their mouth where their money has been. The California Nurses Association, working with the Foundation for Taxpayer and Consumer Rights, has formally qualified a clean-money ballot initiative for the November election.</p>
Public campaign financing initiative makes ballot

Public campaign financing initiative makes ballot

<p class="source">Associated Press</p> <p>The nurses' initiative would authorize public financing for candidates for governor, the Legislature and other state offices who collect a certain number of signatures and $5 contributions. They also must agree not to take private donations beyond some initial money to organize their campaigns.</p>
Bad deal for cable customers;

Bad deal for cable customers;

<h3>AT&T, Assembly Dems bill's winners</h3><p class="source">San Francisco Chronicle</p> <p>AT&T is spending tens of millions of dollars on advertising, lobbying and campaign contributions in California to bring what it claims is more choice and greater competition to the cable television industry. That's half right. There would be more choices. But not for you and me, just for AT&T.</p>
State leader pay to rise 18%:

State leader pay to rise 18%:

<h3>Panel OKs the first salary increases for top elected officials in six years.</h3><p class="source">Sacramento Bee</p> <p>Jamie Court, president of the Foundation for Taxpayer and Consumer Rights, said, "It's not like any of these characters really need the money. I think it's a slap in the face to voters."</p>
Passing marks for California stem cell agency in first annual audit;

Passing marks for California stem cell agency in first annual audit;

<h3>Some concerns voiced, however, on future oversight</h3><p class="source">THE SAN FRANCISCO CHRONICLE</p> <p>ohn Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights, a nonprofit group in Santa Monica, said the documents issue "raises some really troublesome questions" about how the stem cell agency views its responsibilities as a public entity. "What they would have us believe is that they are operating within the general practices of all state agencies. But state agencies don't hire auditors that stiff the controller's office," Simpson said.</p>