Quackenbush Sued by Calif. Residents

Two Los Angeles resident have filed suit against California Insurance Commissioner Chuck Quackenbush, asking for the repayment of $13 million they claim the commissioner misappropriated in settlements with insurance companies accused of mishandling claims.

The suit contends that moneys obtained through Quackenbush’s enforcement actions should have been collected by the state controller. The suit also claims taxpayers are entitled to reimbursement of the funds. Meanwhile, the state’s attorney general is making efforts to dissolve the non-profit foundation established with the funds and take control of the money on behalf of the public.