Tag Archives: insurance

Secret in-flight recording sparks rage over wildfire insurance ‘bailout’

By Sophia Bollag, Joe Garofoli : sfchronicle – excerpt

SACRAMENTO — A conversation with a lobbyist secretly recorded on an airplane is shedding light on discussions of possible wildfire insurance legislation that consumer advocates are worried will be pushed through the Legislature in the final two weeks of the session.

“We are trying to jam a bill in the last three weeks,” longtime insurance industry lobbyist Michael Gunning says on the recording, which was taken on a Southwest flight from Los Angeles to Sacramento. He went on to explain that major insurance companies, including Farmers, State Farm and Allstate, have been reducing their footprint in the state…

The conversation goes to the heart of a question roiling Sacramento in the last days that bills can be written before the end of the legislative session: What can state lawmakers do to stave off concerns of an insurance crisis in California — a state that boasts the strongest insurance protections for consumers in the country?…

Consumer Watchdog has long been a thorn in the side of the insurance industry, and its founder was the chief backer of Proposition 103, the 1988 voter-approved ballot measure that created California’s strict rules governing insurance policies in the state. That measure also created the office of the insurance commissioner.

Gunning, a registered lobbyist with the firm Lighthouse Public Affairs, did not return a call seeking comment for this story. A colleague from his firm followed up with an emailed statement, characterizing the recording as an example of Gunning’s work to address California’s housing crisis.

“Let’s not do a bailout at the end of session with no public scrutiny,” she said. “It never ends well for consumers when lawmakers push through a bailout at the end of session.”…(more)

This news broke on national broadcast news so the secret is out.

Most bills are created by lobbyists who go to great lengths to hide the details from the public until the bills are passed. People have been complaining about backroom deals for years, but, the information has fallen on deaf ears.

All of a sudden the media is acting surprised. We shall see how far they go with it. Will they only despair of insurance company scams or will they admit how widespread the practice is? How many bills are passed without public knowledge or participation?

Isn’t this how we got SB35 and SB2011 that are now being blamed for such monstrosities as 2700 Sloat and a little known project going up on a greenway next to Sunset Blvd.? Is this how they will confiscate the parks and golf courses and waterfront sites that are not tied down to a trust of some kind? In San Francisco our public parks are being leased to private enterprises for a pittance . Not much is of limits when the developers get greedy and the state reps are hooked on their largesse.