Insurers Sue to Block Rate Rollback Standards

Nearly 100 insurance companies petitioned a Los Angeles Superior Court judge Tuesday to prohibit California’s new insurance commissioner, John Garamendi, from implementing new standards for Proposition 103 rate rollbacks and rebates to customers.

The companies, including most of the state’s biggest auto insurance sellers, asked that rollback standards ordered by the former commissioner, Roxani Gillespie, be declared the final state action in the matter. The companies had fought to stop the rollbacks proposed by Gillespie but now say they are less stringent than those proposed by Garamendi.

Almost 2 1/2 years have passed since the electorate voted for 20% rate rollbacks of 1989 premiums, but no rollbacks have been made.

Garamendi said Tuesday: “Today, a gang of insurance companies sued to try to put the brakes on the turbocharged rollback and rate regulation process I proposed upon taking office. We will vigorously challenge the contentions.”