Rules Put in Place Under Garamendi Have Saved Consumers Billions

SACRAMENTO, CA - Lt. Governor John Garamendi today sent a stern letter to Insurance Commissioner Steve Poizner, insisting that proposed new rules that would alter voter-approved protections of Proposition 103, and very likely lead to escalating insurance rates, be subjected to public scrutiny.  In an “Emergency Regulation” yesterday, Poizner proposed weakening regulations for home, auto, and business insurers that have saved California consumers $62 billion since Proposition 103 was enacted.

“I spent eight years transforming the California Department of Insurance into the best consumer protection agency in America. I will not stand idly by and watch that be dismantled on the backs of consumers,” Garamendi said.

“Almost twenty years ago California consumers rose up to take control of their insurance costs by passing prop 103. The measure was put into law to ensure that consumers would have rights in dealing with giant insurance companies. Attempts to short circuit the protections inherent in prop 103 will only lead to another uprising,” he added.