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Driver Sues Quackenbush, Claims Inaction

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From Associated Press

An injured motorist has filed a federal lawsuit against Insurance Commissioner Charles Quackenbush, contending that he failed to enforce regulations against a complaint-riddled insurer controlled by a company that donated more than $50,000 to Quackenbush’s campaign.

The action in U.S. District Court in San Francisco says political influence was exerted on the Republican commissioner by the controlling company, which is owned in part by California GOP Chairman John McGraw.

San Francisco resident Howard Herships contends that Quackenbush failed to punish Pacific Specialty Insurance Co. of San Mateo because the company is controlled by McGraw Commercial Insurance Services Co. McGraw Commercial’s owners include the state GOP leader and other members of the McGraw family.

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The lawsuit, filed Thursday by Herships under the civil provisions of the federal Racketeering Influenced Corruption Organizations Act, asks the court to appoint a special master to run the Department of Insurance and seeks a hearing on the issue within 10 days. No hearing has been scheduled.

Herships says Pacific Specialty, with about 100,000 customers, was the subject of more than 400 complaints filed during a three-year period, and was the target of 18 court judgments in three San Francisco-area counties.

A spokesman for the Republican Party rejected the allegations against McGraw and said he has not run the company since 1994.

Quackenbush spokesman Scott Edelen said the department had not seen the lawsuit and could not comment on it.

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