Public Interest Organizations Tions
Total Page:16
File Type:pdf, Size:1020Kb
California access to a fair and efficient -SB 941 would deprive accident vic- tims of their current right to full civil Each regulatory agency of system of justice. redress and a jury trial, and require vic- California government hears In 1988, AJF and its campaign com- from those trades or industries it mittee-the Voter Revolt to Cut Insur- tims to subsidize those who caused their respectively affects. Usually ance Rates-sponsored and qualified injuries; and organized through various trade Proposition 103, the only one of four -an intrusive, time-consuming, and associations, professional lobby- competing insurance reform initiatives bureaucratic claims procedure would ists regularly formulate positions, approved by the electorate in the encourage abuse by insurers, particularly draft legislation and proposed November 1988 election. for those consumers who lack the means rules, and provide information as AJF publishes a bimonthly report, or ability to navigate and negotiate its part of an ongoing agency rela- Citizens Alliance, on citizens' rights intricate procedures. tionship. These groups usually issues and actions at the local, state, and Voter Revolt Chair Harvey Rosen- federal levels. Legislative, judicial, and focus on the particular agency field said the insurance industry is "up to overseeing a major aspect of their administrative activities which impact its old tricks-albeit with clever new business. The current activities of on the public justice system and the packaging designed to entrance con- these groups are reviewed as a exercise of citizens' rights are a major sumers burdened by high insurance part of the summary discussion of focus of the organization's research and rates. It is trying to enrich itself and deny each agency, infra. educational activities. AJF is funded by consumers the reforms of Proposition There are, in addition, a num- grants and individual memberships. 103...." He emphasized that voters ber of organizations which do not MAJOR PROJECTS: rejected no-fault insurance when they represent a profit-stake interest in Once again, the debate over automo- approved Proposition 103 in November regulatory policies. These organi- bile insurance in California has polarized 1988. zations advocate more diffuse the state's public interest community and At a Voter Revolt headquarters news interests-the taxpayer, small paralyzed the legislature. In mid-May, conference on May 20, renowned con- business owner, consumer, envi- Voter Revolt was joined by the Southern sumer advocate Ralph Nader denounced ronment, future. The growth of Christian Leadership Conference, the no-fault insurance legislation as "a cruel, regulatory government has led Chicano Correctional Workers Associa- anti-consumer power play by insurance some of these latter groups to tion, and other groups in opposing SB companies...." He said the plan includes become advocates before the reg- 941 (Johnston), the proposed no-fault fewer benefits than the no-fault insur- ulatory agencies of California, insurance legislation supported by Gov- ance systems in Michigan and New often before more than one agen- ernor Wilson, the insurance industry, York. Nader urged Californians to con- cy and usually on a sporadic Consumers Union, Public Advocates, tact their legislators and insist that they basis. and other consumer and ethnic organiza- vote against SB 941, and unite behind Public interest organizations tions. (See infra reports on CON- full implementation of Proposition 103. vary in ideology from the Pacific SUMERS UNION and PUBLIC ADVO- He warned the public that "if the insur- Legal Foundation to Campaign CATES for related discussion.) Voter ance industry succeeds in shifting atten- California. What follows are Revolt warned Californians not to be tion from Proposition 103 to no-fault, brief descriptions of the current misled by the insurance industry's multi- Californians will never see 103's roll- projects of these separate and million dollar advertising campaign to back and other reforms." He noted that diverse groups. The staff of the muster support for SB 941. Voter Revolt SB 941's $220-per-year price tag is Center for Public Interest Law said the ad campaign's slick mailers and deceptive because drivers would need has surveyed approximately 200 newspaper ads do not identify the insur- additional coverage to protect against such groups in California, direct- ance industry as the source and sponsor. lawsuits allowed by SB 941 in cases of ly contacting most of them. The Voter Revolt and the anti-no-fault serious or permanent injuries. Further, following brief descriptions are coalition argue that SB 941 is an attempt he asserted, SB 941 is not indexed for only intended to summarize their to evade implementation of Proposition inflation; thus, benefits would decline activities and plans with respect 103. It released a 15-page analysis of the each year. At the news conference, Nad- to the various regulatory agencies legislation, which concluded that: er released a letter he had sent to Senate in California. -SB 941 would lead to immediate Judiciary Committee Chair Bill Lockyer increases in insurance premiums for in response to a request for Nader's most Californians, and provides no long- stand on no-fault. In the letter, Nader term price protection to low- and called for full implementation of Propo- moderate-income policyholders; sition 103 and additional insurance ACCESS TO JUSTICE -the bill permits insurers to shift the reforms: FOUNDATION costs of auto accident claims to taxpay- -a low-cost, lifeline auto insurance er-supported programs and to health policy available to all who need it-with 3325 Wilshire Blvd., Suite 550 insurance premiums paid by consumers Los Angeles, CA 90010 full tort-law protections, eliminating the and businesses; uninsured motorist problem; (213) 383-9618 -it undermines Proposition 103 by limiting the regulatory authority and -establishment of a permanent con- Access to Justice Foundation (AJF) is accountability of the Insurance Commis- sumer advocacy group to represent poli- a nonprofit, nonpartisan citizen advoca- sioner; cyholders' interests (see supra FEATURE cy organization established to inform the -low-income people would be forced ARTICLE for extensive background public about the operation of the legal to accept permanently inferior cover- information on this issue); -better highway and auto safety system; provide independent, objective age-including diminished medical ben- laws research on the protection accorded citi- efits-in exchange for trading away their to reduce accidents and property dam- zens by laws; and guarantee citizens of present legal rights; age; he California Regulatory Law Reporter Vol. 11, No. 3 (Summer 1991) 4 PUBLIC INTEREST ORGANIZATION ACTION -a law reinstating insurance compa- en months after Proposition 103 passed, Conference panel discussions includ- nies' liability to third parties for failure the national insurance industry, led by ed the current status of clean air regula- to pay claims promptly; State Farm and Farmers, is again asking tion, critical issues related to health and -anti-fraud provisions which penalize the courts to thwart the will of the peo- environmental benefits and socioeco- totally frivolous lawsuits or legal defens- ple," said Rosenfield. "Ironically, the nomic costs, and strategies and data es or unnecessary medical charges; and same insurance companies which last needs for minimizing costs and maxi- -court congestion reform, to expand year tried to block former Commissioner mizing benefits. Speakers addressed the access to the courts and speed resolution Gillespie's regulations-which would following topics: the health effects of air of civil and criminal cases. have given almost no rollbacks-are pollution; costs and strategies for achiev- On May 28, SB 941 was defeated 5-4 now telling the court Gillespie's regula- ing clean air; estimating costs and bene- in the Senate Judiciary Committee; at tions are valid and must be applied, fits; and clean air legislation. Workshops this writing, it does not appear that Sena- rather than Garamendi's far tougher reg- covered future directions for air pollu- tor Johnston will seek reconsideration ulations," he added. Rosenfield called tion control professionals; alternative for the bill this year. Attention is now the insurance industry disrespectful of strategies for cleaning the air; and health focused on AB 1375 (Brown), the California voters, consumers, and the effects research. Assembly Speaker's competing bill rule of law, and said it is an "arrogant, ALAC and four environmental which would establish a low-cost policy outlaw industry." groups called an April 30 news confer- for qualifying, low-income, good However, on April 9, Judge Dzintra ence to criticize SCAQMD's latest drivers, while leaving the existing fault- Janavs threw out the insurers' lawsuit, regional air quality plan-the same day based tort system largely intact. Should paving the way for Garamendi to hold the agency began three days of public AB 1375 pass the legislature, Governor hearings on the proposed regulatory hearings on the revised document. The Wilson has vowed to veto it. (See infra changes in May and June. Rosenfield groups called the latest provisions of the agency report on DEPARTMENT OF interpreted the court's ruling to mean plan too weak to be legal, and said that INSURANCE for related information on that "Proposition 103 is inevitably, irre- the changes are "a giant step backward" these bills.) vocably, unquestionably, and unavoid- compared to SCAQMD's 1989 plan, In March 12 letters to Insurance ably going to go into effect." which was rejected by the EPA (see Commissioner John Garamendi and CRLR Vol. 10, No. 4 (Fall 1990) p. 17 Attorney General Dan Lungren, Voter for background information). Joining Revolt accused the insurance industry of AMERICAN LUNG ALAC at the news conference were rep- punishing agents who discount insur- ASSOCIATION OF resentatives of the Coalition for Clean Air, Sierra Club Legal Defense Fund, ance premiums, which is permitted CALIFORNIA Natural Resources Defense Council, and under Proposition 103. Voter Revolt 5858 Wilshire Blvd., Suite 300 investigation Citizens for a Better Environment.