California Insurance Commissioner Ricardo Lara and the California Department of Insurance are continuing to try to change the state’s intervention process, in which groups or individuals are paid for intervening in rate hearings.
Lara and CDI submitted the Intervenor and Bureau of Administrative Hearings Equity and Accountability rulemaking proposals to the Office of Administrative Law for final review, saying such large-scale changes would mark the most significant modernization of the intervenor system since Proposition 103 was enacted in 1988.
RELATED: California insurance commissioner unveils interventionist reform regulations
The regulations propose:
- Clarify the “substantial contribution” and reasonableness standards for intervenor compensation claims
- Clarify the role of the Department’s Bureau of Administrative Hearings in settlement agreements and compensation requests
- Require the AHB Administrative Law Judge to provide all parties with regular status updates every 30 days
- Expand public reporting by publishing interventionist activities and statistics on the CDI website
The reforms follow months of public engagement, including input from consumer advocates, insurance companies and the general public.
These reforms are part of Laura’s Sustainable Insurance Strategy, a comprehensive overhaul of California insurance regulations designed to stabilize the market and expand coverage.
OAL has up to 30 business days to complete the review. Once approved, the regulations will be submitted to the Secretary of State and will take effect shortly.
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