COMMISSIONER LARA ADVANCES FIRST OVERHAUL OF INTERVENOR PROCESS IN 35 YEARS TO PROTECT CONSUMER DOLLARS AND STRENGTHEN TRANSPARENCY

The following information was released by the California Department of Insurance:

Submitted regulation strengthens transparency, accountability, and public participation in Department's rate review process

SACRAMENTO, Calif. Insurance Commissioner Ricardo Lara announced today that the California Department of Insurance has submitted its Intervenor and Administrative Hearing Bureau Fairness and Accountability rulemaking package to the Office of Administrative Law (OAL) for final review marking the most significant modernization of the intervenor system since Proposition 103 was enacted in 1988.

The reforms strengthen transparency, improve efficiency, and protect consumer dollars in the insurance rate review process. Once approved by OAL, the regulations will establish clear standards for intervenor compensation, expand public reporting, and reinforce the Department's authority to ensure that every dollar in the rate review process serves the public interest.

"These reforms strengthen Proposition 103 by bringing long overdue transparency and accountability to every part of the rate review process," said Commissioner Lara. "Californians deserve to know that every dollar in this system is protected, and I will not allow any organization insurer or intervenor to operate without clear guardrails."

Key provisions of the regulations include:

Clarifying "substantial contribution" and reasonableness standards for an intervenor's request for compensation

Defining the role of the Department's Administrative Hearing Bureau (AHB) in settlement agreements and requests for compensation

Requiring regular status updates from AHB Administrative Law Judges every 30 days to all parties

Expanding public reporting by posting intervenor activity and statistics on the Department's website

Improving public access to proceedings through required posting of AHB calendars, dockets, and documents

The reforms follow months of public engagement, including a 45-day comment period, written and oral testimony, and a subsequent 15-day comment period on targeted revisions. Input from consumer advocates, insurers, legal experts, and members of the public informed the final proposal.

Several organizations representing homeowners, farmers, builders, and small businesses expressed strong support, calling the reforms "a crucial step toward restoring balance, reducing unjustified delays, improving transparency, and protecting access to coverage."

Commissioner Lara also addressed mischaracterizations raised by opponents during the rulemaking process.

"Some groups have misrepresented these reforms as limiting consumer voices. That is simply false," Lara said. "The right to intervene remains untouched. What changes is the expectation that compensation must be earned, documented, and aligned with the issues in the proceeding."

The Department's record underscores the importance of rigorous oversight. From 2019 to 2025, the Department's expert review saved Californians $6.6 billion in premiums and secured $3.3 billion in refunds for drivers during the COVID-19 pandemic.

"Accountability is not optional," Lara added. "Transparency is not an attack. It is the foundation of public trust and these reforms ensure that every part of the system is accountable to the Californians it serves."

The reforms are a central component of Commissioner Lara's Sustainable Insurance Strategy, the most comprehensive overhaul of California's insurance regulations in more than 35 years, aimed at stabilizing the market, expanding coverage options, and building a modern, resilient insurance system.

OAL has up to 30 working days to complete its review. Once approved, the regulations will be filed with the Secretary of State and take effect shortly thereafter.