Insurance Officials Didn’t Report Gifts, Group Says

State Insurance Commissioner Chuck Quackenbush and several former and current senior deputies failed to report $865 worth of gifts from the insurance industry, a watchdog organization charged Tuesday in a complaint to the Fair Political Practices Commission.

The gifts ranged from restaurant meals and golf dates at Pebble Beach country clubs to free “baby-sitting,” according to a complaint filed by the Proposition 103 Enforcement Project.

The organization accused Quackenbush, one of its favorite targets, of failing to publicly report that he received $56 worth of meals last year from the Personal Insurance Federation of California. These included three lunches and a reception.

As part of its anti-conflict of interest provisions, the 1974 Political Reform Act requires officials to report annually any gifts exceeding $50. Each violation can result in a $2,000 fine.

The Proposition 103 group, which sponsored the successful Proposition 103 car insurance initiative in 1988, said the unreported gifts were itemized in lobbying expense reports filed by the insurance industry for 1995 and 1996.

The group said the industry has spent a total of $6,000 on food, beverages and entertainment for insurance department officials, who regulate the industry. The bulk of it was properly reported by department officials.

Dana Spurier, a spokeswoman for Quackenbush, said a preliminary review of the complaint showed it to be “full of inaccuracies and falsehoods. All current and past employees [of the department] follow the letter of the law.” She said, for example, that Quackenbush did not attend a reception where he allegedly received $28 in gifts.

Also named were several current or former high-ranking Quackenbush deputies, including Greg Butler. He allegedly failed to report $459 in gifts from the industry, including $215 for golf at Pebble Beach.

Richard Wiebe, a deputy commissioner, failed to report $253 worth of meals and golf fees, the complaint alleged.

The document also questioned whether William Palmer, a deputy commissioner and chief counsel, properly accounted for $35 worth of baby-sitting at Pebble Beach in 1995.