Suspiciously Like a Political Ad

State Insurance Commissioner Chuck Quackenbush is not known for going out of his way to help consumers. So people have taken special notice of his new TV spots claiming that billions of dollars in insurance funds “are available to be returned to California consumers” in rebates and other settlements. But when viewers call the department’s hotline or their insurance companies for more information, they get only vague explanations.

There’s confusion within the Insurance Department as well as insurance companies and consumer groups about precisely what rebates are available and to whom. All this raises the question of whether the commissioner is using a publicly funded $1-million “consumer outreach” campaign for political grandstanding in his presumed bid for reelection next year.

In one of the two 30-second spots, Quackenbush states that the billions of dollars are available through “auto insurance rebates, liquidated assets of bankrupt insurance companies, class action lawsuits and settlements and restitution awards.” In the other, the commissioner asserts, “My department has cracked down on insurance companies which have ripped off unsuspecting consumers.”

Quackenbush says most of the billions are represented by $1.8 billion in 86 separate funds resulting from actions such as the liquidation of insurance companies; these funds are administered by the Insurance Department. But department officials point out that the period for making claims has run out in 84 of the 86 cases. Claimants would have to secure a court order to reopen the process on the grounds they were not properly notified.

So far, Quackenbush’s justification for the commercials simply is not compelling. The commissioner says he used general terms in the TV ads “so as not to lose people’s attention.” But how about the trust of California consumers? The million-dollar campaign, paid for with taxpayer money, is supposed to help consumers. The biggest help so far has gone to the political aspirations of Chuck Quackenbush.