2022 election: Q&A with Marc Levine, California insurance commissioner candidate [The San Diego Union-Tribune]

There are nine candidates for state insurance commissioner on the June 7 ballot. Three Democrats — medical doctor/businessman Vinson Eugene Allen ($1 million), incumbent Ricardo Lara ($1.9 million) and San Rafael Assemblymember Marc Levine ($1.8 million) — have far outraised all others to get their messages out. The top two vote-getters will advance to a Nov. 8 runoff election. The San Diego Union-Tribune Editorial Board sent surveys to the three main candidates. Here are their replies.

If you have comments or questions about the election or any of the candidates after reading this interview, please email Editorial and Opinion Director Matthew T. Hall at [email protected].

Below are Marc Levine's responses and a link to other responses.

Q: What in your background makes you the best candidate for this job?

A: I served as a San Rafael City Council member before winning my first term in the California Assembly in 2012. I'm now in my fifth term in the Legislature thanks to the support of my neighbors. After fires in 2017 threatened my community, then-Insurance Commissioner Dave Jones asked me to author three bills (Assembly Bills 1797, 1799 and 1800) to protect insurance policyholders and Californians recovering from natural disasters. Those three pieces of legislation became law.

I've been a staunch advocate and leader on consumer protection legislation. I have authored more than 90 laws that have made a difference for Californians, even though I was often opposed by Big Oil, tech giants, utility companies and the National Rifle Association. I have firsthand experience living in a wildland-urban interface (WUI), protecting my home from potential fires and working with my neighbors to keep our community safe.

Q: Assess incumbent Ricardo Lara's term as insurance commissioner.

A: Commissioner Lara's behavior as insurance commissioner should be disqualifying for the office. Despite promising not to do so, Lara was caught twice taking donations from the insurance industry, the first California insurance commissioner since disgraced Republican Chuck Quackenbush to do so. (Quackenbush would later resign over charges of corruption). The second time, Lara conspired with insurance lobbyists and CEOs to accept donations through spouses. Commissioner Lara then overruled his administrative law judges at least five times in favor of his donors, and allowed one in particular to redomicile in New Mexico, saving the CEO millions and earning the lobbyists (and Lara's former boss) a $2 million payout.

In an effort to cover up this scheme, Commissioner Lara instituted an email deletion policy that destroyed records and communications within 180 days, and in some cases just 90 days. This step pushed his own employees in the California Department of Insurance to turn whistleblower, and the commissioner is now in court attempting to prevent those whistleblowers from testifying to that effect.

All the while, Commissioner Lara has allowed rate hikes and non-renewals to skyrocket while he cozies up to the industry he's meant to regulate. His scandal-plagued administration has damaged public trust in the office, and has made addressing the insurance crisis more difficult. We must have new leadership to return the insurance commissioner's office to its intended role: the largest non-federal consumer advocate in the country.

Q: How would you ensure that homeowners, only starting with those in high-risk wildfire zones, know what steps are necessary to maintain eligibility for private insurance and are treated fairly by insurance companies when seeking coverage?

A: Insurers have intentionally obfuscated their rate-setting and insurability standards and the current insurance commissioner has failed to require transparency in the marketplace. First, I will require insurers to disclose how their rates are determined so that homeowners and renters can make educated decisions as to how they will reduce their fire risk and lower their premiums. I will close the loophole that allows insurers to discriminate based on occupation or education, and I will prevent insurance companies from refusing to renew policies for residents whose circumstances have not changed and will operate under a strict consumer-protection standard for non-renewals. I will prevent insurance redlining by requiring insurance companies to obtain approval from the insurance commissioner before they can reduce their policy offerings in a given geographic area.

I will guarantee homeowners insurance to Californians who harden their homes and mitigate their fire risk and will implement $10,000 home hardening grants similar to the Earthquake Brace and Bolt Program under the California Earthquake Authority. Not only does this vital work keep Californians and their property safe, but it's far more cost-efficient for residents and our state.

Q: The state's FAIR program is meant to provide insurance of last resort to property owners who are denied coverage from private insurers. Is it doing an adequate job in an era of wildfire risk and greater denials? If not, how would you improve it?

A: While the FAIR plan is intended to be the insurer of last resort, the current insurance commissioner has allowed insurers to reduce conventional insurance options in ZIP codes across California. Because the FAIR plan must maintain solvency, it collects higher premiums while reducing coverage. Ultimately, this arrangement benefits insurers who still provide these plans and collect profits, while consumers see their rates skyrocket.

Under Proposition 103, the insurance commissioner has broad authority to shape the insurance marketplace. By relying on the FAIR plan to cover large portions of higher risk regions, Commissioner Lara is ceding ground to the industry he's meant to regulate. As insurance commissioner, I will not allow insurers to dictate which towns and ZIP codes can and cannot receive better coverage options. Residents who are doing the vital work to mitigate their own and their neighbors' risk deserve better coverage, and I will provide resources for Californians who cannot afford these projects on their own.

Despite these efforts, some residents may still find that the FAIR plan is their best option. In this case, the California Department of Insurance must ensure that insurance agents and advocates are familiarized with FAIR plan policies. Many FAIR plan policyholders are underinsured or lack a proper understanding of the extent of their coverage. As long as we are relying on the FAIR plan to fill gaps in insurance coverage, we must ensure that Californians receive adequate coverage and complete information about their policies.

Q: Why should voters choose you over your opponents?

A: The current insurance commissioner is ethically compromised and currently in court in an attempt to cover up a pay-for-play scandal. After accepting campaign contributions from the insurance industry not once but twice after promising not to do so, the commissioner overruled his own administrative law judges on his donors' behalf, ultimately saving insurance companies millions and providing exorbitant payouts for the lobbyists that made it happen. At the same time, millions of Californians are facing skyrocketing insurance rates or being non-renewed by insurers to whom they've paid premiums for decades.

There are no small jobs, just small actors. I will be an activist insurance commissioner who will stand up against the insurance companies on behalf of Californians to ensure that everyone has access to better, more comprehensive insurance options, and I will require insurance companies to provide discounts and incentives for risk mitigation and home hardening programs.

This story originally appeared in San Diego Union-Tribune.