California Insurance Commissioner Ricardo Lara has submitted a sweeping regulatory package to the Office of Administrative Law that would modernize the state’s intervenor system for the first time since voters passed Proposition 103 in 1988. The reforms aim to strengthen transparency, improve efficiency, and protect consumer dollars in the insurance rate review process.
What Is the Intervenor Process?
Under Proposition 103, consumer groups and other organizations can participate in insurance rate proceedings as intervenors — parties who review rate filings and challenge insurers on behalf of the public. Successful intervenors can receive compensation from insurers for their work. The system has operated largely unchanged for more than three decades.
What the New Regulations Would Do
The California Department of Insurance submitted the Intervenor and Administrative Hearing Bureau Fairness and Accountability rulemaking package to the Office of Administrative Law (OAL) for final review. Once approved, the regulations would:
- Clarify the “substantial contribution” and reasonableness standards that determine whether an intervenor qualifies for compensation
- Define the role of the Department’s Administrative Hearing Bureau (AHB) in settlement agreements and compensation requests
- Require AHB Administrative Law Judges to provide status updates to all parties every 30 days
- Expand public reporting by posting intervenor activity and statistics on the Department’s website
- Improve public access to proceedings by requiring the posting of AHB calendars, dockets, and documents
How the Regulations Were Developed
The Department conducted months of public outreach before finalizing the proposal. The process included a 45-day public comment period, written and oral testimony, and a subsequent 15-day comment period on targeted revisions. Consumer advocates, insurers, legal experts, and members of the public all provided input.
Several organizations representing homeowners, farmers, builders, and small businesses expressed support, describing the reforms as “a crucial step toward restoring balance, reducing unjustified delays, improving transparency, and protecting access to coverage.”
Addressing Critics
Some opponents argued the reforms would limit consumer participation in rate proceedings. Lara rejected that characterization directly.
“The right to intervene remains untouched,” Lara said. “What changes is the expectation that compensation must be earned, documented, and aligned with the issues in the proceeding.”
Broader Context
The reforms are part of Lara’s Sustainable Insurance Strategy, which the Department describes as the most comprehensive overhaul of California’s insurance regulations in more than 35 years. The strategy focuses on stabilizing the market, expanding coverage options, and modernizing the insurance system.
The Department’s expert review process has saved Californians $6.6 billion in premiums from 2019 to 2025. During the COVID-19 pandemic, the Department also secured $3.3 billion in refunds for drivers.
Next Steps
OAL has up to 30 working days to complete its review of the rulemaking package. If approved, the regulations will be filed with the Secretary of State and take effect shortly after.
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