Insurance Commissioner

Re your March 26 and April 2 articles and subsequent editorials (March 28, April 4): Insurance Commissioner Chuck Quackenbush has levied unprecedented monetary penalties on lawbreaking insurance companies of $56.3 million since he was first elected to office.

The reference to billions of dollars being “recommended” by legal staff to settle Northridge earthquake violations is simply not true. The numbers were not recommendations of possible fine amounts by staff, nor were they verified or substantiated. Of particular concern was the fact that the numbers could not meet the legal standard of accuracy required for use in any enforcement proceeding. These estimates were for illustration purposes, to reflect the worst-case scenario. Our primary objective during these negotiations was to maximize the dollars to be returned to consumers as quickly as possible.

The reality of the industrywide resolution the commissioner achieved following Northridge is that companies were forced to stop their illegal actions and pay almost $12 million--$6 million into a fund to provide further relief for victims and another $5.8 million to fund future earthquake research and outreach focused on safety and prevention. Further, Commissioner Quackenbush has been a strong voice in the fight to overturn the law to allow consumers more time to file a claim in those instances when damage is discovered later--well after the current one-year statue of limitations.

Finally, it has been portrayed that Fremont Insurance received special attention through the commissioner’s advisory workers’ compensation rate increase of 18.4%. The recommended increase was proposed for every California carrier.

MICHAEL KELLEY

Chief Deputy Commissioner

California Department of Insurance

Sacramento