Sponsors of Insurance Bills Postpone Vote

Legislators and consumer advocates seeking changes in the state’s insurance laws to end the insurers’ antitrust exemption and allow more rate regulation retreated Wednesday when it became apparent that they did not have the votes to pass their bills out of the Assembly Ways and Means Committee.

Assemblywoman Maxine Waters (D-Los Angeles) and Assemblyman Lloyd Connelly (D-Sacramento) decided to indefinitely delay asking for votes to send the measures to the Assembly floor. The committee session was marked by angry exchanges between Waters and two Democratic lawmakers who appeared to be blocking the legislation.

Democrats hold a majority in the Assembly and can--if they are unified--pass bills out of committee. Republicans on the committees, however, have been unanimously opposed to rate regulation and have abstained on lifting the antitrust exemption.

Democratic Battle

Waiting to testify against both Waters’ and Connelly’s bills, if votes on them had been requested, was Roxani Gillespie, state insurance commissioner.

On Wednesday, however, the verbal battle was mainly among Democrats.

Waters responded with an expletive after Assemblyman Steve Peace (D-Chula Vista) insisted that although he was all for her bill to end the state antitrust exemption of the insurance companies, he wanted it sent first to the Assembly Finance and Insurance Committee for consideration.

She said Peace knew that if it went to that committee, it would be killed. Peace, however, said legislative rules spell out that step.

Substitute Bill

The Los Angeles assemblywomen also sharply challenged an assertion by Assemblyman Charles M. Calderon (D-Alhambra) that he was for rate regulation and wanted to vote for a rate regulation bill.

Waters said she would drop her antitrust bill if Calderon would agree to provide the last vote required to move Connelly’s rate regulation bill out of the committee. Calderon answered that he wants to compare Connelly’s with a substitute bill written by the insurance lobby and sponsored by Senate Majority Leader Barry Keene (D-Benicia).

Waters said later she had effectively shown up Calderon for what he is--an opponent of Connelly’s bill. Harry Snyder, West Coast director of the Consumer’s Union, charged that both Peace and Calderon are “tools of the (insurance) industry.”

Both Peace and Calderon denied Snyder’s charge. Calderon accused Waters of being the “point person for the trial lawyers” in their battle to deflect insurance and legal reforms onto the backs of the insurers rather than the lawyers.

The substitute legislation, described by consumer advocates as a step away from rate regulation, is to be heard next week in the Assembly Finance and Insurance Committee.