SACRAMENTO, California — Insurance Commissioner Ricardo Lara on Monday struck down part of an administrative law judge’s ruling that would have reshaped how his agency reviews insurance rate hikes.
Last month’s surprise ruling from the Insurance Department’s chief administrative law judge got broad pushback from the insurance industry, which saw an extra review step as burdensome. The Consumer Watchdog, an advocacy group that gets compensated for intervening in rate cases, supported the move.
Judge Kristin Rosi determined in a ruling last month that some rate hikes approved by department staff need additional sign-off by an administrative law judge before going into effect. Lara’s decision Monday strikes that finding from the judge’s ruling, saying it conflicts with longstanding departmental policies, including a 2005 notice by former Insurance Commissioner and current Rep. John Garamendi (D). Lara also said the judge’s ruling contains erroneous legal interpretations.
The decision notes no one had previously complained about the process, and department spokesperson Michael Soller said the ruling had led to “confusion.” As a result, the commissioner will pursue rulemaking in 2025 to clarify the rate review process, Soller said.
