Garamendi, Ex-Ally Clash Over Funds From Insurance Industry

The industry’s main California lobby has released documents showing that Insurance Commissioner John Garamendi accepted $85,327 in campaign contributions from insurance companies in the 13 years that preceded his decision to run for commissioner.

The disclosure by the Assn. of California Insurance Companies this week prompted the most serious clash yet between Garamendi and his former ally, Proposition 103 author Harvey Rosenfield, who suggested the contributions influenced Garamendi’s recent conversion to support of no-fault insurance.

Garamendi deputy Tom Epstein responded that Rosenfield’s suggestion “defies reality,” and the aide said Garamendi supports no-fault simply because it is “the best way to produce a low-cost auto insurance policy and reduce rates for everyone.”

The aide noted that Garamendi has taken nothing in industry contributions since announcing last year he was a candidate for commissioner, which was made an elective statewide office by the passage of Proposition 103.

This week’s release by the insurance lobbying association on Garamendi’s insurance contributions follows by three weeks Rosenfield’s release of records showing that Atty. Gen. Dan Lungren accepted $87,608 in industry contributions during 15 years in politics.

Rosenfield has alleged that insurance industry contributions to both Garamendi and Lungren amount to “bribery, extortion and corruption.”

Commenting for Lungren, spokesman Dave Puglia said: “It’s a shame that this type of mud-ball tactics was ever used by anybody to begin with. Atty. Gen. Lungren will not engage in that type of behavior and has no further comment.”

Rosenfield’s Aug. 21 disclosure came in the midst of a fight between Lungren and Garamendi over the insurance commissioner’s freedom to choose his own lawyers to fight for Proposition 103 rate rollbacks. Rosenfield said Lungren was trying to undermine Garamendi’s legal effort. Last week, Garamendi won a court decision letting him hire the attorneys he wants.

In releasing the report this week on Garamendi’s contributions, a spokesman for the insurance association said the purpose was not to suggest that either Garamendi or Lungren was tainted by taking insurance industry money.

“What we’re interested in is fair play, and when Mr. Rosenfield makes a statement about Mr. Lungren’s contributions and deliberately ignores the insurance commissioner’s contributions, it’s not fair,” said spokesman Bob Gore. “We just wanted to set the record straight. We don’t think either man was influenced.”

When Rosenfield released the Lungren contribution report, he was on good terms with Garamendi. But since then, Garamendi has endorsed no-fault auto insurance and lost the support of Rosenfield, who is aligned with the California Trial Lawyers Assn. against no-fault.