Lara advances first overhaul of intervenor process in 35 years to protect consumer dollars and strengthen transparency

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 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 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."

Lara also addressed mischaracterizations raised by opponents during the rule-making 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.

About the California Department of Insurance

Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state's consumers by fairly regulating the insurance industry. Under the Commissioner's direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud.

Consumers are urged to call (800) 927-4357 with any questions or contact us at www.insurance.ca.govvia webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at (800) 927-4357. Teletypewriter (TTY), please dial (800) 482-4833.