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California Insurance Commissioner Ricardo Lara on Friday announced he wants to make certain reforms to the state’s insurance law, Proposition 103, including changing the controversial intervenor process.

Prop. 103, passed by voters in 1988, is the state’s bedrock insurance law that outlines what can and can’t be included in rate filings. The intervenor practice is part of the filing process, in which outside groups can participate in rate hearings on behalf of consumers and charge a fee for their services.

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According to Lara, some stakeholders have expressed concerns that the process lacks transparency, is dominated by a small number of recurring participants and can lead to delays and more costs for consumers and taxpayers.

One of the most prolific intervenors is Consumer Watchdog, whose founder authored Prop. 103. The group has been reached out to for comment.

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Lara said the proposed changes will clarify how intervenor participation is evaluated and compensated, ensuring that consumers, policyholders, and taxpayers only fund the contributions to the public interest. They will also make the process more open and accessible, preventing any single group from monopolizing the process, according to Lara.

Changes would include:

• Clarifying the “substantial contribution” standard for intervenor compensation.
• Requiring public reporting on intervenor activity and compensation.
• Establishing timelines and responsibilities for administrative law judges, including mandatory 30-day status updates on pending cases to the public.
• Requiring the California Department of Insurance to post public documents online – including hearing calendars and decisions – making them accessible to all Californians and replacing outdated physical viewing rooms.

“Consumers are frustrated with hidden fees, especially when insurance costs are already exorbitant and unaffordable for many. California’s insurance crisis demands tough decisions and accountability from everyone involved – insurance companies, intervenors, and the Department itself,” Lara stated. “To stabilize our market, we need a rate review system that delivers timely, fair, accurate, and thorough decisions, rather than one that gets bogged down in process or delays real solutions.”

Topics California