Ricardo Lara offers an insurance rule that critics call “revenge”

From LevagsCalmness

This story was originally published by CalmattersS Register about their ballots.

California Insurance Commissioner Ricardo Lara offers more new insurance rules that critics call “vindictive” and say that only insurers will make it easier for insurers to raise the rates.

California home insurance costs will surely increase in the near future because of recent Lara Changes to State Insurance RulesS These changes aim to encourage insurance companies to continue writing new policies and to prevent them from canceling policies, especially in high -risk areas.

Last week, Lara suggested that the insurance rate for a review rate in what he said was an effort to make it more effective. But others say that the changes that Lara wants to make a revenge amount against one of his largest and most difficult critics, a consumer guard.

“This is Trump,” said Jamie Court, President of the Consumer Professor, a non -profit organization, which wrote the state law for a proposal 103. The consumer guard is the most fruiting intervention in California; Intervent is a member of the public who can challenge the request of the insurer’s tariff.

The organization has repeatedly called Lara’s relationship with the insurance industrywhereby received and returned Contribution of the campaign. The consumer guard has sued the insurance department on several different issues, including his rule, which allows the fair plan – the fire provider in the last resort – to reimbursed some of your payments for claims by the holders of the policy in the country.

Lara’s proposed changes would make the following:

• They impose new deadlines and guidelines for interventions and administrative law judges.
• Tighten the requirements for what is considered a “significant contribution” to compensate for intervents for their work.
• Limit the powers of administrative law judges in tariff reviews.

The consumer guard and other consumer advocacy organizations say that these changes would make it difficult for interventions – which they have to pay experts to challenge tariff requests – to be compensated. This can lead to less interventions, and no more, as Lara’s proposal intends. They also say that changes can lead to unjustified increases in the premium faster.

Lara’s deadline expires next year and “he takes his revenge,” said the Calmatters court, adding that his group is considering judging on the matter.

Michael Soller, a spokesman for the insurance department, will not respond to the court’s comments, but said the consumer guard “will have a chance to say what they should say” during the public commentary period on Lara’s proposal, which begins on October 3. The hearing on the proposal is scheduled for November 20.

A representative of the insurance industry, the American Association for Insurance of Victims of Property, supports Lara’s proposal to determine the “violations of intervention process”.

“The only one of its kind in the country, this process has contributed to the insurance crisis by delaying interest approvals, duplicating the work of (the insurance department) and ultimately increasing the cost of consumers,” says Danny Ritter, Vice President of the State Relationship Association.

Both Lara and the insurance industry have questioned the users’ commitment to consumers through the users over the years and accused the group of using the Insurance Act it has written to enrich its leaders.

But the consumer guard says he has saved Californians more than $ 6 billion in home and car insurance premiums from 2002 to 2024. According to the intervention system, the group says it has received $ 14.2 million in compensation for the period or $ 25 for each saved $ 100. The court said the compensation was going to pay for lawyers and actuaries – experts trying to behave against the powerful insurance industry.

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Robert Herrel is the CEO of the Consumer Federation in California, a non -profit consumer intercession group, which most focuses on the legislative work, but which has also intervened in the tariff reviews. He said he was not

“There is no doubt in my mind that the consumer work guard has saved money to consumers,” said Herell, who was a deputy commissar on former commissioner Dave Jones.

Both groups judge Lara in July, claiming to have denied them compensation for their participation in the rules of the department last year.

Herel said that the more stringent interventions requirements will serve only to discourage challenging tariff requests and will lead to higher insurance premiums and that Lara’s proposal “feels criminal” against the consumer guard.

“We (interventions) may be secured, but real people will be injured,” he added.

Soller, a spokesman for the insurance department, does not agree. He said the Commissioner’s proposal actually strives to increase transparency and number of intervents and deals with a key problem: having insurance.

Insurance companies that withdrew from writing new policies in California complained, among other things, that the department takes too much time to approve its Tariff requests.

“What users don’t get is the availability and coating they need,” Soller said.

The consumer guard goes back to the accusation that he is guilty of delaying percentage approvals. “The time until the tariffs are approved in cases of interventions and without the involvement of the public interventions are almost identical,” the group said.

This article was Originally Published on CalMatters and was reissued under Creative Commons Attribution-Noncommercial-Noderivatives License.