California judge says she was fired after objecting to settlements with insurers seeking rate hikes
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Set us as preferred A state administrative law judge is accusing California Insurance Commissioner Ricardo Lara of denying her authority to review requests by insurers for rate increases, and later firing her after complaining the department wasn’t adhering to the law.The Superior Court lawsuit filed by Kristin Rosi, the department’s former chief administrative law judge, takes issue with a longstanding practice in which insurance commissioners and regulators at the Department of Insurance, along with consumer groups, entered into negotiated settlements with insurers seeking rate hikes without her involvement.Rosi claims the practice violates Proposition 103, the 1988 ballot measure that gives the insurance commissioner authority to review auto, home and other rate increases, but also guarantees public rate hearings and forbids premiums that are “excessive, inadequate, unfairly discriminatory or otherwise in violation of the Insurance Code.” “Judge Rosi was in the unenviable position of indicating that the law must be followed,” said her attorney Wendy Musell.“Once she raised these concerns, she swiftly found herself out of a job.” Business Auto insurance rates have surged because of high inflation and soaring vehicle repair costs in the car capital of the country.The judge, appointed in 2007, was put on leave in January 2025 and fired later that year, according to the lawsuit filed in September in Alameda County.
It accuses Lara, a former deputy commissioner as well as the department, of whistleblower retaliation, sex discrimination, infliction of emotional distress and other causes of action in seeking damages.A spokesperson for Lara and the department declined to comment.Although the lawsuit doesn’t specify which types of insurance were at issue, Musell said they involved auto and home insurers, which hav...