LICAC Sues California Department of Insurance Over Complaint Data

The Life Insurance Consumer Advocacy Center (LICAC) has filed a lawsuit against the California Department of Insurance (CDI) for allegedly withholding consumer complaint data. The lawsuit claims that despite initial statements from the CDI that the data did not exist, evidence from a 2023 report contradicts this claim. LICAC asserts that the withheld data is crucial for policy reform and consumer protection.

Executive director Brian Brosnahan stated that after months of correspondence without results, legal action was necessary. LICAC's aim is to obtain the data to track complaints and assess the impact of legislative changes, particularly Senate Bill 263, which revised standards for insurance agents. The CDI asserts it has mechanisms in place for consumer complaints but has been criticized for the lack of transparency regarding specific complaint figures.

Despite the CDI's defenses, consumer groups push for accountability and clearer data to ensure that consumer interests are prioritized in the insurance market. The legal battle highlights ongoing tensions in insurance regulation and the need for accessible consumer protection measures.