California consumer group can intervene in insurance rate cases, after state’s unusual invitation to challenges

Consumer Watchdog, the Los Angeles group that has repeatedly challenged state Insurance Commissioner Ricardo Lara, has won its recertification effort, a decision that allows the group to collect money for its advocacy work.

The nonprofit had seen its recertification as an intervenor in rate cases — usually a routine process — put on hold earlier this year by the California Department of Insurance.

Instead of approving the application, Lara invited public input on the recertification and received a slew of comments from insurers and others who do not generally embrace Consumer Watchdog’s efforts.

The group submitted additional information that nudged the commissioner toward approving the recertification.

But the insurance commissioner said in the approval notice, dated last Friday, that the nonprofit advocacy group failed to show how it intervenes in rate cases to help reduce the cost of premiums.

“The commissioner notes that even with the additional information, it is unclear what work Consumer Watchdog actually performed in the rate-application process versus that of the department,” Lara wrote.

“This is an area where the commissioner will expect a stronger description in the first instance of the work performed by Consumer Watchdog,” he added.