Lots of Excuses, All Weak

After a week of silence, Insurance Commissioner Chuck Quackenbush has finally responded to allegations that he mishandled Northridge earthquake settlement claims and made questionable use of campaign contributions from insurance companies. Basically, Quackenbush’s defense was that everybody does it and he did not think he had done anything illegal. That’s not good enough. Coming during a three-hour interview with Times reporters, the defense was a weak one at best. The more Quackenbush tried to explain himself, the worse things got.

Formal investigations might determine whether the GOP officeholder violated any laws. But even now it’s easy to conclude that Quackenbush used exceptionally bad judgment and crossed the bounds of ethical behavior.

Consider his transfer to his wife, Chris, of $250,000 in political contributions--most of which he received from insurance companies--to pay off debts from her losing race for the state Senate in 1998. Such campaign transfers are not uncommon in California, but they would be outlawed under most reform proposals.

It’s bad enough for Quackenbush to accept contributions from the companies he is supposed to regulate, especially when, under term limits, he can’t even seek reelection. But $175,000 of the transfer to his wife’s campaign became particularly egregious when the commissioner explained it was used to pay off a mortgage on her house. Of course, it’s his house too. By extension, Quackenbush used his own campaign funds to benefit himself personally, usually a prohibited practice.

The insurance commissioner also had no defense of a curious use of funds elicited from insurers to a foundation created by Quackenbush aides to educate people about earthquake hazards. The money was paid in lieu of fines for mishandling Northridge claims.

But why would the foundation then give $500,000 to the Sacramento Urban League for a building project unrelated to earthquake education? Quackenbush, a member of the league board, insisted he was not aware of the donation, which was arranged by one of his chief deputies, George Grays, who resigned Thursday.

Most of the commissioner’s questionable actions would be prohibited by a strong general campaign finance law, but we’re not likely to have one soon. The best immediate remedy would be to prohibit the insurance commissioner from accepting contributions from insurance companies. The Legislature could pass such a law this session and have it in force before the next election campaign begins. It should do so.