Mullin said the governor failed to see the larger picture. If it is too expensive for caregivers to do their jobs, he said, patients might be forced to leave their homes -- possibly at great expense to the state.
Insurance lobbyists said it is hardly the case that they get everything they want. They said they have endured their share of disappointments: friendly bills vetoed, onerous regulations approved.
"We don't feel we're getting special accommodations," said Rex Frazier, who succeeded Dunmoyer as president of the Personal Insurance Federation. "We feel we have to outwork our opponents just to mitigate the damage."
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But pro-insurance voices have been gaining clout in Schwarzenegger's government. After the defeat of his ballot initiatives in the November 2005 special election, Schwarzenegger ordered a shake-up. In came Dunmoyer and Webb.
Dunmoyer had spent the previous 16 years at the Personal Insurance Federation, which represents State Farm, Farmers, 21st Century and other insurers. Companies that are part of the federation have donated about $213,000 to Schwarzenegger's campaign accounts.
At the Schwarzenegger campaign team's request, Dunmoyer attended an event in June that was co-sponsored by one of the major insurance trade groups that lobby in the Capitol: the American Insurance Assn. The group last year donated $200,000 to Schwarzenegger's campaign causes.
While Dunmoyer was president of the Personal Insurance Federation, he devised a political strategy for the insurance industry through 2010.
The document, obtained by The Times, calls for putting more people from the insurance industry into elective office. It also says the industry should support pro-business candidates by paying for political mailings signed by groups with a better public image.
Since joining the government, Dunmoyer said, he is scarcely involved in his old profession.
"My role in insurance here is phenomenally limited," he said in an interview.
Appointment records and interviews show that Dunmoyer is involved.
In April, he spoke at an event hosted by State Farm, telling employees "what the top priorities will be for the governor," according to the agenda.
That same month, Dunmoyer appeared before the political action committee of his former employer. A trade association newsletter describing his appearance said Dunmoyer urged the group to "let their legislators know the active role agents play in the growth and financial health of their communities."