San Francisco ABC affiliate 7 On Your Side and The San Francisco Standard report that California Insurance Commissioner Ricardo Lara has been having a good time on the taxpayers’ dime — during an unprecedented insurance crisis.
The news outlets reveal that Commissioner Lara used campaign funding to pay for $30,000 in fancy meals and taxpayer dollars to travel to Paris, Bogota and beyond.
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The state has launched a probe in the wake of the news investigations.
Lara’s spokesperson has responded to a request for comment by saying the Insurance Commissioner is “laser focused on his job serving Californians as we face unprecedented times and bringing solutions to the insurance crisis.”
Here’s a look at what the commissioner has been doing and what critics are saying about it.
What the commissioner is doing versus what he’s supposed to be doing
According to ABC7, Commissioner Lara has gone on at least 46 cross-country and international trips with taxpayer funds. His office has not revealed the function of the trips.
He has spent $30,000 at some of the fanciest restaurants in California, dining on lobster salpicón, sea urchin, rack of lamb, and a $16 grapefruit.
The San Francisco Standard reports that the meals were listed as “campaign meetings” and paid for with funds from a campaign committee he created during his run for lieutenant governor years ago. Even though his run was never publicly announced, he kept collecting campaign donations — coincidentally amounting to $30,000.
As Insurance Commissioner, Lara’s job is to lead the Department of Insurance, which licenses insurance companies, establishes rate regulations, punishes insurance companies for rule violations and investigates consumer complaints.
Critics say he’s not doing his job. Since 2019, he’s missed eight of 14 of the state’s insurance hearings. Dozens of insurers have left under his watch — 22 since 2021 according to the management consulting firm Milliman.
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While many insurers are fleeing California due to climate change risks, critics argue that Lara’s actions have worsened the crisis.
For example, CNBC reports that some insurers have pulled out because California has set strict limits on rate increases.
Commissioner Lara blocked companies from raising premiums, despite huge losses, in part because of the potential impact of price increases on his re-election chances.
Now California insurers are being sued for allegedly colluding to limit coverage in high-risk areas. Critics suggest that Lara is too cozy with insurers — especially after he was caught collecting tens of thousands of dollars in campaign donations in 2019.
Californians must deal with the insurance crisis themselves
If critics are right that Lara’s actions made things worse, Californians are the ones footing the bill.
“Lara is not serious. It was always a game to him,” political scientist David Letterman told the San Francisco Standard. “And now insurers are leaving. People are being priced out; they can’t get insurance. It’s gone beyond like, ‘Oh, he’s just not up for the job.”
Many Californians have had to turn to the FAIR Plan.
FAIR has issued 555,000 home policies in California — double the number in 2020 — covering $458 billion in properties.
The FAIR Plan was established by statute to make sure everyone could get coverage. Essentially, it’s a high-risk pool. All insurers licensed to sell property and casualty coverage in California come together to cover FAIR plan participants. The insurers share profits, losses, and expenses.
The problem is that FAIR Plans are costly and provide limited coverage to homeowners.
With so many homeowners stuck with few choices, it’s no wonder people are mad at the commissioner for living his best life on taxpayer and campaign funds.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
