By Levi Sumagaysay | CalMatters<\/p>\n
California Gov. Gavin Newsom is also facing pressure to oust Commissioner Ricardo Lara as insurance policyholders struggle with delayed and denied claims months after the Los Angeles fires.<\/p>\n
Survivors of the deadly Los Angeles County fires, some of whom have been unable to rebuild because their insurance claims have been delayed or denied, are calling for California Insurance Commissioner Ricardo Lara to resign.<\/p>\n
Lara, a former state lawmaker, has one year left in his second term.<\/p>\n
Also see:\u00a0California commissioner proposes insurance rule that critics call \u2018revenge\u2019<\/a><\/p>\n A recent New York Times article<\/a> detailing loopholes the insurance industry could exploit in Lara\u2019s plan<\/a> to try to improve California insurance availability was the last straw, fire survivors said. They said it proved Lara has helped the insurance industry more than he has helped policyholders.<\/p>\n Lara and others said his plan, which officially rolled out just days before the L.A.-area fires<\/a> in January, is in its early stages and will take time to work.<\/p>\n Jill Spivack, a State Farm policyholder whose home burned in the Palisades Fire, said during a press conference Thursday that she has been unable to rebuild.<\/p>\n Also see:\u00a0Mercury seeks new home insurance rates using California\u2019s risk modeling system<\/a><\/p>\n \u201cWe feel alone, we feel forgotten,\u201d she said. She implored Gov. Gavin Newsom to replace Lara. \u201cCalifornians deserve an insurance commissioner that protects families, not the insurers doing harm,\u201d Spivack said.<\/p>\n Lara \u2014 who also faces accusations of improper spending<\/a> of taxpayer dollars on travel \u2014 told CalMatters in an interview that he has no plans to resign.<\/p>\n \u201cI understand the anger (of fire victims),\u201d Lara said. \u201cI\u2019m frustrated with the pace of recovery that involves multiple agencies, multiple levels of government.\u201d<\/p>\n He mentioned the actions he has taken in response, which include the Insurance Department\u2019s June launch of a formal investigation into State Farm<\/a> over its handling of claims from the L.A.-area fires; a legal action against the FAIR Plan<\/a>, the state\u2019s fire insurer of last resort; and a bulletin requiring insurance companies to fully investigate and pay smoke damage claims.<\/p>\n Lara\u2019s efforts aren\u2019t helping survivors quickly enough, some of them say. On a website<\/a> the group recently launched calling for Lara\u2019s resignation, the Eaton Fire Survivors Network links to surveys that say 70% of policyholders face delays and denials, and that 61% expect to lose housing coverage within months. They want the investigations sped up. They want Lara to pause\u00a0 approvals of rate increases in the meantime.<\/p>\n Why one survivor wants Lara out<\/p>\n Andrew Wessels is still waiting to move back into his Altadena home, which did not burn down but was damaged. He first spoke with CalMatters in May<\/a>, as he was battling State Farm over getting his home tested for toxins because he did not want to move his two children back into a potentially unhealthy environment.<\/p>\n He told CalMatters on Friday that he is still waiting for more tests the insurer ordered as it decides what it wants to pay for. He expects to have to wait until next year before he and his family can actually rebuild. But he feels lucky that he, his wife and kids found semi-permanent housing after shuffling among Airbnbs since the fire. They are now three months into an 18-month lease that State Farm is paying for, and he\u2019s breathing a little easier because he\u2019s \u201cnot boxing up things every few weeks.\u201d<\/p>\n He is joining the call for Lara\u2019s resignation. He said the state\u2019s insurance department recently closed his complaint about State Farm\u2019s handling of his claims based on the company\u2019s word alone \u2014 without asking him first.<\/p>\n \u201cRecent information provided by the insurer states that the matter you originally brought to our attention is currently in stable condition,\u201d the department\u2019s Oct. 8 letter states.<\/p>\n \u201cIt was particularly concerning that it was closed without talking to me,\u201d Wessels said. \u201cThey\u2019re supposed to represent me. I think it speaks to who the Department of Insurance actually serves.\u201d<\/p>\n He appealed and asked a couple of his state lawmakers\u2019 staff to contact the department on his behalf, and it reopened his complaint.<\/p>\n \u201cIt was also concerning that \u2018if State Farm says it, it must be true,\u2019 since the department is investigating (the insurer) for illegal practices,\u201d Wessels added. That proves a change is needed, he said.<\/p>\n Newsom spokesperson Tara Gallegos and the governor\u2019s office did not return repeated requests for comment about the calls for the governor to replace Lara.<\/p>\n Nicole Ganley, a spokesperson for the American Property Casualty Insurance Association, said the industry group would have no comment on the effort to oust Lara. She pointed to a letter to the editor the group sent to the New York Times, which took issue with the story about insurers reportedly exploiting loopholes in the commissioner\u2019s new regulations by avoiding writing policies in certain areas, then turning around to request to raise their premiums anyway.<\/p>\n \u201cThe reforms are recent, and their impact is still unfolding,\u201d the letter says in part. \u201cSuggesting failure at this stage misrepresents the facts and risks undermining public confidence in a strategy designed to stabilize coverage in high-risk areas.\u201d<\/p>\n \u2018No magic wand\u2019 for insurance crisis<\/p>\n Carmen Balber, executive director of Consumer Watchdog, the Los Angeles-based nonprofit organization that is often at odds with Lara, was also at the press conference. Throughout his tenure, her organization has questioned his insurance ties<\/a>, beginning in 2019 when Lara received and returned<\/a> campaign contributions from the industry. He ran for office pledging not to take money from companies he\u2019d regulate.<\/p>\n