Gone--as He Should Be

When Chuck Quackenbush was sworn in as state insurance commissioner, he vowed--as all elected officials do--to “well and faithfully discharge the duties upon which I am about to enter.” The 46-year-old Marine veteran, once considered a possible future star in California politics, broke that faith and betrayed the special trust of the insurance policyholders he was supposed to protect. So today, Quackenbush stands disgraced and out of office, effective July 10.

That he waited so long to resign is an indication of his shamelessness. And when the issue finally was forced, it appeared that Quackenbush took the final step primarily to avoid responding under oath to the grave allegations against him. He may have wanted some kind of legal immunity, some taxpayer funds to pay his lawyers, but he rightly got no deal for his resignation. Investigation of Quackenbush and his office by the state attorney general will continue, leading to whatever civil and criminal actions are appropriate.

Had he not quit, Quackenbush would have faced impeachment proceedings and almost certainly been removed from office. The Assembly Insurance Committee will present a report on its detailed, methodical hearings into the bizarre workings of the state Department of Insurance, along with suggestions for reforms. But the final chapter, Quackenbush’s own story and the mystery of why all this happened, will have to be written in another forum, perhaps in the courts.

Californians should be relieved that Quackenbush is stepping down. But this is not an occasion for celebration. Insurance Committee Chairman Jack Scott (D-Altadena) put it correctly: When the public trust is broken, all of us suffer. Now, all involved have a responsibility to restore that trust.

The job ahead is a large one:

* Gov. Gray Davis must find an exemplary nominee to submit to the Legislature for confirmation to serve the 30-month balance of Quackenbush’s term--someone who is in no way beholden to the state’s $65-billion insurance industry. There is no way to avoid politics; Democrats stand to gain one of only two statewide offices now held by Republicans. This succession should be as free of partisanship as possible, but there also is a need to move quickly. The department needs a firm hand to bring order to the commissioner’s office.

* The Legislature needs to plug loopholes that allowed Quackenbush and his aides to solicit donations to private foundations from insurance companies in lieu of huge fines and to use the money for what amounted to political public relations. If insurers break the law, they should be held accountable and fined. If they have not adequately compensated policyholders for losses, the commissioner should see that they do so.

* No longer should the insurance commissioner accept political donations from the companies he or she is supposed to regulate. We have supported a ban on contributions by the firms themselves, but that is a partial solution. Insurance executives still would be able to give unlimited amounts of money to a candidate. California needs to ban all corporate donations and put a reasonable limit on individual contributions. Now, there are no limits. Industry statements on Wednesday, by the way, failed to acknowledge the companies’ role in this controversy, although the firms willingly allowed themselves to be mugged by Quackenbush for the questionable, and probably illegal, donations.

* We need watchdogs to keep an eye on the watchdogs. There were signs of lax enforcement in Quackenbush’s office several years ago, but no one blew a whistle until a courageous department attorney, fed up with the abuse, came forward at the risk of her career. And it was not until The Times’ Virginia Ellis began reporting the story in late March that it got any public attention. We are encouraged by Speaker Bob Hertzberg’s (D-Sherman Oaks) steps to increase the Assembly’s oversight of state agencies. The Legislature needs to make sure the state’s law protecting whistle-blowers is adequate and improve it if not.

Finally, we need to remember that the great majority of elected state officials and civil servants are honest, hard-working people interested in doing a good job for the public. California is fortunate to have a government free of scandal and corruption, with occasional exceptions. The Quackenbush case reminds us that keeping it that way requires constant vigilance and courage.