California Insurance Commissioner Ricardo Lara has requested a shift of the hearing regarding an online insurance rate increase, referencing the potential risks following the 2024 assassination of United Healthcare CEO Brian Thompson.
In an August 18 letter to a Los Angeles administrative law judge, Lara’s legal team expressed concerns that holding a hearing on the public insurance rate hike could pose serious risks.
They urged Judge Fredrick J. Seligman to transition hearings regarding a proposed increase in fire insurance rates for State Farm from in-person to virtual meetings.
State Farm is seeking approval for this rate hike in light of the recent Pallisard and Eton fires. However, a coalition of local residents, organized by former Los Angeles deputy mayor Joy Chen under the Eton Fire Survivor Network, contends that State Farm must adhere to its responsibilities to policyholders prior to implementing any fee increases.
Lara’s attorneys have pointed out various risks, including “the recent stalking incident involving the family of a murdered United Healthcare CEO, killed by an upset policyholder in Manhattan.”
The Eton Fire Survivor Network voiced amusement at Lara’s comparison of policyholders to murderers.
They expressed frustration, stating, “Instead of taking our complaints seriously, Commissioner Lara implied that we pose a threat to his staff. To add insult, he linked us to Luigi Mangione, the ‘hot killer’ who assassinated the CEO of a New York health insurance company.”
What a stretch. We’re parents, grandparents, neighbors, and hardworking citizens—all seemingly harmless and certainly not violent. Still, we maintain that our taxes support Commissioner Lara’s role to advocate on our behalf, and that our concerns should not be dismissed as a safety threat.
The back-and-forth between the state and the parties escalated, with some asserting that [CDI’s concerns] were unfounded.
Ultimately, Judge Seligman denied Lara’s motion, asserting that there hadn’t been any proof of a significant risk linked to in-person attendance. He emphasized the importance of transparency and fairness for both parties and the public involved.
The hearing proceeded without incident.
Judge Seligman also dismissed Lara’s proposal to split the review of State Farm’s request into two separate matters—one regarding rates and the other dealing with actions against policyholders.
Policyholders are hopeful that combining these matters will hold State Farm more accountable moving forward.
