California insurance commissioner race receives record PAC donations
Political Action Committees (PACs) have contributed a record $6 million in campaign donations to the California Insurance Commission race, according to a CalMatters report.
The article says this includes $3.2 million to support state Sen. Ben Allen, a Democrat, and $1.5 million to oppose his opponent, Jane Kim, also a Democrat.
While both candidates have said they wouldn’t take donations from insurance companies, CalMatters reports that some of the PAC funding comes from insurance groups.
Bail bonds insurers donated $30,000 to PACs supporting Allen, the article states. It adds that a company connected to the bail bonds industry donated another $9,500, and a health insurance PAC donated $48,000.
“I didn’t ask for this and don’t welcome it,” Allen told CalMatters.
CalMatters explains that super PACs can spend unlimited money as long as they don’t coordinate with the candidate’s campaign. Candidates also cannot return the money.
Allen did return some insurance industry donations made early in the campaign, the article states.
“The contributions that come in are a reflection of what the (insurance) industry believes is the best outcome for them,” CalMatters reports Kim as saying. “These contributions are an investment in him and themselves, not for consumers.”
Kim also argues that she hasn’t accepted corporate PAC donations.
Allen has served in the state’s legislature since 2014, according to his campaign website. He lists climate and environmental policies as a focus during his tenure.
Allen’s plan focuses on strengthening the state’s insurance market as wildfires and climate disasters intensify.
“My plan will restore a competitive insurance market, ensure Californians are treated fairly after disasters, and build resilient communities that can withstand the climate challenges ahead,” he states on his website.
Fighting insurers that “deny and delay” and post-disaster insurer compliance are other planned action items, Allen’s site claims.
This would include higher upfront payments for coverage requiring insurers to clearly explain claim denials and maintain post-disaster real-time reporting on delays and outstanding claims.
Allen also outlines how he’d make the department more transparent and accountable. The website states Allen would modernize customer service and filings infrastructure, improve consumer communication, and provide data transparency.
Kim previously served on the San Francisco Board of Supervisors, as California political director for Bernie Sanders, and as California director for the Working Families Party, according to her campaign website.
Her priorities focus on “affordable, available insurance for all,” the website states. She proposes a single-payer disaster insurance policy for state residents.
The website also says she’ll ensure premiums cover claims, or lower them.
“Insurance companies should spend premium dollars on their intended purpose: protecting policyholders,” the website states. “If companies collect more than they need to cover claims and a reasonable profit, that money should go back to policyholders or be invested in statewide resilience, not huge payouts at our expense — like the $27 million salary one insurance company CEO was paid last year.”
Her site states that a long-term goal is to build a public auto insurance option to compete in the market.
She also notes that she’s focused on “fast and fair claims.” This includes freezing rates when a claim is filed, penalizing delays to speed up payments, and immediate payouts.
Under Kim, insurance companies would be held accountable through market conduct examinations and elevated complaint rates, according to the website. She also proposes an insurance performance dashboard that consumers can use to assess insurer risks before choosing a policy.
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