(Image Credit: IMAGN)
Sacramento, California – California lawmakers held a brief hearing on the state’s escalating insurance crisis, notably without the presence of Insurance Commissioner Ricardo Lara.
The Senate hearing, the first of the year on the issue, occurred in the aftermath of destructive Los Angeles wildfires and ongoing concerns about the future of insurance availability in California. For two years, the Legislature and Governor Gavin Newsom have largely deferred to Commissioner Lara to address the growing problems of insurers pulling out of the state.
On Wednesday, two officials from the Department of Insurance testified in Lara’s place. “Commissioner Lara was not able to be here, otherwise he would. He had previously scheduled engagements,” said Michael Martinez, senior deputy commissioner of the Department of Insurance. A spokesperson for Lara later confirmed that he plans to testify in person at an Assembly Insurance Committee hearing on March 19.
The department officials reiterated that recent wildfires have not jeopardized the department’s new regulations aimed at stabilizing the insurance market.
The hearing, led by State Senator Susan Rubio, was marked by its brevity and strict time constraints. Rubio limited testimony time for department officials, lawmakers, consumer advocates, wildfire victims, insurance industry representatives, and scholarly experts. Throughout the hearing, she repeatedly urged witnesses to “wrap up” their statements.
State Senator Aisha Wahab attempted to delve deeper into issues such as renters’ protections but was also met with Rubio’s calls to conclude. “For many people who have lost their insurance, who are victims of the fires, their life is at a standstill, and they have no other option. They are effectively homeless,” Wahab said, emphasizing the plight of vulnerable renters. “The payouts aren’t enough for what we are seeing, and I don’t see a true plan in front of us.”
When the insurance industry experts were given 30 seconds to respond, they remained silent as Rubio moved on to the next panel.
At the hearing’s conclusion, Rubio acknowledged the rushed nature of the proceedings. “Everyone needs to be at the table, we need the insurers to stay in California, we need the perspective from victims. We need our scholars, we need everyone giving us information,” Rubio said. “But again, it was a little rushed. Our colleagues will share what other subject matters they want to cover and make sure we go a little deeper so my apologies if it felt rushed.”
