Commissioner Lara supports budget action to help address insurance crisis
News: 2024 Press Release
LOS ANGELES — Insurance Commissioner Ricardo Lara released the following statement in support of new budget “trailer bill” language introduced today by Governor Gavin Newsom. The language implements needed reforms modernizing the Department of Insurance’s rate application, review, and approval process that are part of Commissioner Lara’s Sustainable Insurance Strategy to address the state’s insurance crisis. Under this proposal, the Department of Insurance will create a data reconciliation tool that will help achieve a thorough rate review within the current 60-day timeline prescribed under Prop. 103:
“I appreciate Governor Newsom’s strong backing of my Strategy and his continued commitment to make sure we have the support and resources we need to implement effective, lasting reform.
“The Department’s rate review is the public’s check on rates, making sure consumers do not pay more than they are required for coverage. This proposal strengthens my Department’s ability to hold all parties to a rate filing accountable, including insurance companies and intervenors. We will continue to thoroughly review each and every rate application filed to make sure they are compliant with our laws and justified under Prop. 103, and that consumers are protected.
“To safeguard the integrity of the insurance market – composed of consumers, homeowners, and business owners – we must fix a system suffering from decades of deferral and delay. This measure is one of several parts of a comprehensive plan to enact long-overdue regulatory reforms. The Legislature can do its part to support my reforms by giving this proposal a fair and full consideration, including public input. By enacting this important part of our strategy in statute, the Legislature can help us meet the urgency of the moment.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
