A state Senate panel voted Wednesday to bar California’s insurance commissioner from ever again allowing insurance companies to avoid fines by contributing to nonprofit foundations.
The Senate Insurance Committee approved by an 8-0 vote to submit a bill to the full Senate that would prevent future tradeoffs similar to those undertaken by current Insurance Commissioner Chuck Quackenbush.
The commissioner has admitted to allowing at least four insurance companies to avoid $3.3 billion in fines for allegedly underpaying claims during the 1994 Northridge earthquake. Quackenbush’s legal team recommended the fines.
No time line has been slated for presenting the state’s Senate with such a bill. Meanwhile, investigations into Quackenbush’s involvement in the issue continue.
Was this article valuable?
Here are more articles you may enjoy.
Hedge Funds Make Their Move as Litigation Finance Assets Slump 
Florida’s Ailing $6 Billion Rail Line Has Debt Vultures Circling 
Florida Governor Signs Bill Dropping Building Permits for Work Valued at $7,500 or Less 
New York State Has Budget Deal That Includes Auto Insurance Reforms: Gov. Hochul 
