The following link is to the last five cases resolved in October 2002. Court Cases
These show the case concocted against me, alleging that there was something illegal or improper done to resolve the Northrigde Earthquake claims. The Judge decided the allegations against me were utterly groundless.
These claims were beyond the statute of limitations of one year when I took office, and my attempts to get the Legislature to extend this time period were not successful through then Chair of the Assembly Insurance Committee, Jack Scott. The Senate Insurance Committee Chair, Jackie Speier, "tabled" it until it was politically expedient, after I had resigned. She staged widely publicized and expensive "hearings" which resulted in fewer than 200 total "inquiries" from policyholders.
If the Department sued the insurers, years of expensive ligtigation would follow, adding costs to taxpayers and policyholders. If some fines resulted (not at all certain), those fines would go to the "general fund", not the victims. The foundations forced the insurers to reopen the claims as well as provide additional funds for some who were underinsured or not insured.
Though I had fined insurance companies $56 million, more than all previous commissioners combined, this was not the best path to get restitution for the policyholders in this case.
Comments by the Judge show that the same methods were used, and even bragged about, by other regulators such as the Attorney General of California who brought this suit.
The cross complaint filed by the Insurers who were also sued, were granted, and the agreements developed by the Quackenbush Administration that forced insurers to reexamine claims, and provided over a hundred million dollars more to victims, still stand today.
The following chart shows the claims information before the suit:
Supplied by the Personal Insurance Federation of California
Northridge Earthquake Claims Reports as of December 1999
company total claims paid out pending Quake Premium Collected
State Farm 117,000 $3.5 Bil .1 of 1% $1.2Billion
SAFCO 8,293 $265 mil 10 claims $127.5 mil
Farmers 36,700 $2.0 Bil .1 of 1% $500 mil
21st Century 46,400 $1.04 Bil 46 claims $48.7mil
Progressive 75 $75,000 0
TOTALS 208,468 $7.2 Billion $1.8 Bil
Still Serving the public as Sheriff's Deputy