Consumer Watchdog Petitions to Reject Insurance Regulations in California

On April 29, 2026, Consumer Watchdog petitioned the Office of Administrative Law (OAL) to reject proposed regulations from Insurance Commissioner Ricardo Lara. The appeal asserts that Lara inserted a letter with new arguments into the rulemaking record after the public comment period closed, violating state law by obstructing public feedback.

Consumer Watchdog is urging OAL to return the proposal to the California Department of Insurance (CDI). The department may then either remove Lara's letter from the record or restart the rulemaking process to allow public input on these late assertions before resubmitting the regulations.

According to Will Petcher, Litigation Director at Consumer Watchdog, "We are asking OAL to protect those rights by sending the rulemaking package back to the Commissioner." This statement highlights the organization's commitment to ensuring adherence to regulatory compliance requirements.

Proposition 103 establishes a unique intervenor process, fostering consumer protection by allowing challenges to excessive insurance rates. Critics argue Lara's proposal undermines these public rights. Although over 30 diverse organizations have opposed Lara's proposal, favoring its withdrawal, it has mainly received support from insurance carriers and corporate lobbies.

Lara countered criticism by accusing opponents of evading transparency and accountability. His letter defending the proposal introduced previously undisclosed arguments and materials. Consumer Watchdog maintains that California agencies must not introduce new regulatory evidence or arguments without enabling public commentary, advocating for OAL to reject Lara’s rulemaking accordingly.

Public engagement has yielded substantial benefits for California consumers, according to Consumer Watchdog. They claim savings of over $3.2 billion during Lara’s tenure by challenging unjustified rate hikes, including $530 million from State Farm's proposed premium increases. When the public wasn’t involved, Lara approved a significant percentage of rate proposals—94% for homeowners insurance and 88% for auto insurance from 2022 to 2025; however, active intervenors helped lower those percentages.

Consumer Watchdog has also expressed concerns regarding Commissioner Lara's "Sustainable Insurance Strategy," positing it could raise rates by employing undisclosed algorithms and passing reinsurance costs onto consumers. These developments spotlight ongoing debates over risk management and regulatory practices within the insurance industry.