Insurance Commissioner Ricardo Lara issued a statement after a judge dismissed Consumer Watchdog’s baseless claims, which threatened to disrupt California’s insurance market at a critical time when homeowners, renters, businesses, and nonprofits need greater access to coverage.
“The judge’s ruling affirms my authority under Prop. 103 to protect consumers and stabilize market conditions through my Sustainable Insurance Strategy. Consumer Watchdog’s lawsuit fails to address the state’s insurance crisis and is merely another attempt to create chaos in an already complex situation. I’m pleased the judge saw through their charade, which only harms homeowners, small businesses, and non-profits that need better access to insurance options. Consumer Watchdog — which itself admits it has no members — has not offered viable solutions to our state’s insurance crisis and continues undermining my efforts to restore our insurance market. They also continue to profit under Prop. 103 in the millions through higher rates on policyholders when insurance companies seek justified rates from my Department. I will continue to expose their hypocrisy and make the difficult decisions needed to stabilize our market and bring insurance options back to Californians.”
Commissioner Lara is taking proactive steps to stabilize California’s insurance market as companies pull back from wildfire-prone areas, addressing a “hidden crisis” highlighted by Bloomberg. His actions have prevented further market decline and ensured the FAIR Plan could secure funds to pay wildfire-related claims promptly and fairly.
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