CALIFORNIA IN BRIEF : SACRAMENTO : ‘Offshore’ Insurance Regulation Blocked
- Share via
Gov. Pete Wilson Thursday rejected attempts by Insurance Commissioner John Garamendi to sharply restrict purchases of auto insurance from so-called “offshore” companies, headquartered abroad and not regulated by the state. The governor said that while he “agrees that consumers must be protected from unscrupulous insurance companies located outside the country,” he also agrees with the state Office of Administrative Law that Garamendi exceeded his authority in regulating against them without the Legislature taking action first. A spokeswoman for Garamendi expressed disappointment but said he will try to draft a new regulation that might win the governor’s approval. There have been frequent cases of offshore carriers selling insurance at low rates, but then failing to pay claims.
More to Read
Get the L.A. Times Politics newsletter
Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. In your inbox twice per week.
You may occasionally receive promotional content from the Los Angeles Times.