The race for California insurance commissioner has taken some unusual twists, the most notable of which has been the endorsement of the GOP candidate by insurance reformer Harvey Rosenfield.
The race to fill the post being vacated by Insurance Commissioner John Garamendi, who is running for lieutenant governor, pits Democratic Lt. Gov. Cruz Bustamante against Republican entrepreneur Steve Poizner.
Mr. Bustamante first gained national attention for becoming the first Latino speaker of the California Assembly and later for his unsuccessful run for governor against Arnold Schwarzenegger in 2003's special election following the recall of Gray Davis. He retained his lieutenant governor's post after that contest.
Earlier this month Mr. Rosenfield, the author of the landmark Proposition 103, a 1988 voter referendum setting a regulation framework for insurance rates, endorsed Mr. Poizner, primarily over the issue of campaign funding.
Mr. Poizner has poured millions of his own dollars into the race and has pledged to take no money from the insurance industry. Mr. Bustamante said he was returning $150,000 in campaign contributions from the insurance industry back to donors.
Mr. Garamendi has butted heads with the industry, most recently with his rewriting of auto regulations that puts a greater emphasis on a driver's auto record rather than place of residence.
In endorsing Mr. Poizner, Mr. Rosenfield stressed the candidate's pledge to enforce Proposition 103 mandates to review auto premium rate applications and also to support Mr. Garamendi's new reforms.
He said Mr. Bustamante has made only the most “general pronouncements with respect to the enforcement of Proposition 103 or any other public policy pronouncement.”
Overall, he belittled Mr. Bustamante's campaign as superficial in that “it has largely centered on his personal weight loss program, an approach that can only be described as disrespectful of the voters.”
As for the Democrat's return of insurance industry campaign donations, Mr. Rosenfield said that came about only because of public pressure.
Mr. Poizner has pledged to fight what he termed the “use it and lose it” underwriting practices of the insurance industry–raising policyholders' premiums after the filing of a legitimate claim or failure to renew a policy.
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