California Insurance Regulations Eliminate Public Challenge to Rate Increases
What happened
New Department of Insurance regulations eliminate the public's ability to challenge proposed insurance rate increases below 7%. The rules establish a new rate pre-approval process that lasts up to 167 days, during which the Department of Insurance conducts a full rate analysis before public notice is made, barring public participants from intervening.
From prnewswire.com
Why it matters
The regulatory change forecloses $2.6 billion in savings that Consumer Watchdog achieved through challenges to rate increases below 7% over the last 24 years. Under the new system, an insurance company would file a rate application only after the Department of Insurance completes its internal analysis.
Consumer Watchdog has previously exposed how utilities influence regulatory bodies, involving the California Public Utilities Commission.
From prnewswire.com
Who's involved
- Consumer WatchdogAmerican non-profit organization that monitors and opposes policy regarding insurance rates.
- Gavin NewsomGovernor whose office is monitored by Consumer Watchdog regarding policy and governance.
- Ricardo LaraPolitician whose decisions regarding funding and regulation impact Consumer Watchdog.
- SacramentoLocation where Consumer Watchdog operates to influence state legislation.
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The entities involved
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Consumer Watchdog
American non-profit organization
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