Mr. Garamendi, before he made an unsuccessful bid for the governorship, had a term as commissioner that ended in 1994, which saw him in frequent court battles with insurers over the handling of Proposition 103 insurance cost rollbacks.

Mr. Garamendi's announcement of the appeal comes only two weeks into his latest term.

The contested settlements approved by Mr. Quackenbush were related to alleged mishandling of policyholder claims from the Northridge earthquake.

Insurers, who were accused of low balling claims and making shoddy inspections, agreed to pay $12 million into two nonprofit funds to be used for a public safety earthquake campaign, rather than pay fines or make restitution to consumers.

Mr. Quackenbush was forced from office after it was alleged that funds' money was being used to foster his political campaign efforts.

A previous challenge of the settlements brought by Mr. Quackenbush's replacement, Republican Commissioner Harry W. Low, was denied in Superior Court.

A spokesperson for the Alliance of American Insurers in Downers Grove, Ill. said the Commissioner's move was a disappointment because his action would create uncertainty in the marketplace among insurers who thought the issue was "finished and done with."

Mr. Garamendi announced he was acting because, "California consumers were betrayed by Chuck Quackenbush. The sweetheart deals he made with insurance companies to settle alleged mishandling of claims shortchanged earthquake victims.

"I owe it to the Northridge victims to ask the Court of Appeal to review the decision and set aside those agreements. To do anything less only serves to make them victims again."

A spokesperson for the department, Nanci Kramer, said the department takes the position that the settlements violated public policy because they went beyond the scope of the commissioner's authority.

Mr. Garamendi said the settlements effectively deny the department an opportunity to review and properly address consumer complaints.

The Northridge earthquake was one of the largest insured loss events in U. S. history with more than $12.5 billion in total losses. Insurers named in the appeal include 21^st Century, Allstate, State Farm, Farmers and Fireman's Fund.

Allstate spokesman Bob Daniels said, "We agree with the Superior Court's ruling. We believe the settlement agreement between Allstate and the department was valid and enforceable contract under California law and Allstate complied fully with the terms and conditions of that contract."