California democrats voice concern over insurance coverage reforms

Thirty-two members of California’s Democratic Congressional Delegation have written a letter to insurance coverage commissioner Ricardo Lara, expressing concern that his proposed reforms might weaken shopper protections and the regulatory authority granted by Proposition 103.

Led by Representatives John Garamendi and Zoe Lofgren, the group questioned the potential implications of Lara’s Sustainable Insurance Strategy, which features a deal that might require insurers to return to sure hearth threat zones in trade for extra leeway in relation to setting charges.

They added that the reforms might “threaten the important consumer protections established in Proposition 103” and requested that the general public be concerned within the technique of figuring out adjustments to the insurance coverage regulatory framework.

Californians voted to enact Proposition 103 in 1988. Its implementation made the insurance coverage commissioner an elected place and has since required insurers to acquire prior approval from the Department of Insurance earlier than adjusting their charges.

“We bring our concerns to your attention in anticipation of a comprehensive and transparent process of rulemaking, public hearings, and public comment on any proposed changes to the regulatory powers of the commissioner and process for approving any rate increases for policyholders,” the California representatives mentioned of their letter.

“Such a public process is necessary for the protection of consumers against unchecked corporate interests, and we strongly believe that any precipitous action should be subject to public scrutiny.”

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