I have been hearing about a scandal brewing over insurance regulation in California. Insurance Commissioner John Garamendi, who is now a candidate for Lt. Governor has called in the California Attorney General and the FBI to investigate a blackmail and extortion charge. See Garamendi says insurers trying to coerce him on auto regulations; asks FBI, state to investigate
State Insurance Commissioner John Garamendi accused automobile insurers of “coercion, extortion and blackmail” for launching a $2.4 million campaign attacking his proposed regulations that would cut the cost of some drivers’ coverage in crowded urban areas. He asked the FBI, the U.S. Attorney and state Attorney General Bill Lockyer to investigate his allegations.
Garamendi, a Democratic candidate for lieutenant governor in the June 6 primary, said he was told that if he backed off pushing the regulation, he would be spared an attack by insurers as Election Day neared.
This one has a video clip: Auto Insurers Accused Of Blackmailing Commissioner
The state insurance commissioner says he’s facing threats of blackmail to keep auto insurance rates higher.
John Garamendi came out blasting Monday, accusing California’s largest auto insurers of using political extortion to get him to delay implementing laws that would save California motorists money.
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