"We did get this one draft proposal that was apparently drafted by the Insurance Commissioner that would give away all his authority and power over the insurance companies," says Harvey Rosenfield of Consumer Watchdog. "It would basically deregulate the insurance companies."
[Ads /]
A big selling point for the proposal, 7 On Your Side was told, was a guarantee that insurance companies would sell more insurance in difficult-to-insure parts of the state, like wildfire areas. The documents, as read by Consumer Watchdog, would allow insurance companies to wiggle out of that part of the agreement.
"When you look at the fine print of the proposal, that we obtained, that the commissioner drafted, there's absolutely zero commitment to come back into the marketplace," says Rosenfield.
7 On Your Side asked for an interview with Commissioner Lara. He did not reply, but we did receive a statement from Deputy Insurance Commissioner Michael Soller: "Consumer Watchdog's latest cynical claims hide the truth that the group has earned millions of dollars signing off on rate increases -- while denying the reality that insurance has become impossible for some Californians to find at any price... Consumer Watchdog is turning a blind eye to consumers' needs while defending its own insurance piggy bank."
The deputy commissioner is referring to a portion of the Commission's website. It says public participation in the rate setting process is authorized to recover their costs, expenses, and attorney's fees. Deputy Commissioner Soller says Consumer Watchdog has collected nearly $9 million. Consumer Watchdog says its challenges to homeowner's insurance rates have saved Californians $2.2 billion.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case. Due to the high volume of emails we receive, please allow 3-5 business days for a response.
[Ads /]
You may also email 7OYS@KGO-TV.COM.
Please note the address uses the letter "O", not zeros. Be sure to include your full name, email, street address, and phone number.