Commissioner Lara unveils intervenor reform regulations to increase transparency and protect consumers’ money

News: 2026 Press Release

SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara today released the amended text of proposed regulations modernizing California’s intervenor and Administrative Hearing Bureau processes under Proposition 103 — reforms designed to increase transparency, improve efficiency, and ensure that every dollar in the rate review process serves the public interest. The amended text is now available for public comment.

“Every dollar in the rate review process belongs to California consumers. These reforms modernize outdated rules to protect those dollars with the highest standards of transparency and accountability,” said Commissioner Lara. “I value public input. These regulations create clear guidelines for public participation so it’s meaningful, prevents duplication, delay, and unnecessary costs that ultimately fall on policyholders.”

The amended text reflects months of stakeholder engagement and public input. The Department issued its original Notice of Proposed Rulemaking in October 2025, followed by a 45-day public comment period and opportunities for written and oral testimony. After carefully reviewing comments from consumer advocates, insurers, legal experts, and members of the public, the Department made targeted revisions to strengthen the proposal and address legal and constitutional concerns.

Pursuant to state law, the amended text is now available for an additional 15-day public comment period. All changes are clearly identified, and supporting materials have been added to the rulemaking file to ensure full transparency.

The updated regulations:

• Clarify prospective application so new rules apply moving forward, ensuring fairness and consistency in current ongoing proceedings.
• Replace the prior “vexatious” standard with an objective “wasteful” standard for fee determinations focusing on whether work advances the issues in a proceeding, rather than subjective intent.
• Strengthen scrutiny of excessive billing on a task-by-task basis.
• Increase public access to rate proceeding documents by requiring timely online posting of pleadings, hearing calendars, and decisions.
• Establish firm timelines and regular status updates from administrative law judges to reduce unnecessary delays.
• Clarify definitions and procedural rules to streamline hearings and reinforce the Commissioner’s authority under Prop. 103.

These reforms are designed to uphold one of the core purposes of Prop. 103 – meaningful public participation – while ensuring that the process remains efficient, balanced, and focused squarely on consumer and ratepayer benefits.

The Department’s rigorous review of insurance rate filings under Prop. 103 and its lead role in keeping intervenors accountable throughout the rate review process has delivered measurable consumer savings during Commissioner Lara’s tenure.

From 2019 through 2025, the Department’s oversight saved Californians $6.6 billion in property, commercial, and auto insurance premiums, plus an additional $3.3 billion refunded directly to drivers as a result of the Department’s scrutiny of auto insurance rates during the pandemic.

“Under Prop 103, we are the voice of consumers in the rate review process. Effective consumer protection is grounded in facts, evidence, and led by the expertise of the Department’s professionals,” concluded Commissioner Lara.

These reforms are part of Commissioner Lara’s Sustainable Insurance Strategy — the most comprehensive overhaul of California’s insurance regulations in over 30 years — aimed at stabilizing the market, expanding availability, and ensuring a modern, resilient insurance system that works for all Californians.

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Media notes:

• Amended text of proposed regulations for intervenor and administrative hearing bureau fairness and accountability
• Invitation for 15-day notice of public comment on proposed regulations.