Legal Defense Fund

 Contribute To Your Legal Defense Fund - Enough Is Enough!

Solving the continuing, severe availability crisis in property insurance remains IIABCal’s top advocacy priority.  We retained nationally prominent experts in 2023 to develop solutions to the crisis, and provided those solutions in the detailed testimony we provided at numerous California Department of Insurance hearings and workshops throughout 2024. 

Now, just as Insurance Commissioner Ricardo Lara finally begins to implement his Sustainable Insurance Strategy, his efforts are being aggressively challenged in court.  A group claiming to represent consumers is trying to stop the Commissioner from permitting insurers to recoup a portion of the $1 billion assessment that was required to prevent the FAIR Plan from becoming insolvent.  And plaintiffs’ lawyers are suing insurers and insurance company trade groups, claiming they illegally conspired to stop writing insurance and deliberately overload the FAIR Plan.

The IIABCal Legal Defense Fund (LDF) is how we ensure that the legal interests of independent insurance agents and brokers are adequately protected, should it become necessary for us to intervene in, or initiate, critically important litigation.

How LDF Works

LDF provides a ready source of funds to protect the common business interests of the membership when threatened.  LDF proceeds may be used to pay legal fees and related costs to outside vendors associated with defending the members’ interests in the matter at hand. The Legal Defense Fund is not a charitable organization, though and this donation is likely not deductible as a business expense. Please consult with your tax advisor or accountant to determine the tax deductibility for your business.  

What We Need

IIABCal members generously met our $150,000 goal in the first phase of our fundraising effort, which permitted us to hire the experts that helped craft many of the elements incorporated into the Commissioner’s Sustainable Insurance Strategy.  We now aim to raise approximately another $100,000 in order to rebuild our war chest for possible litigation to support the Commissioner’s reform efforts.

How to Contribute

Make your online contribution today!  Your support of the LDF supports you, your policyholders and your industry! Contact Pauline Nakadachi at 925-426-3306 or pnakadachi@iiabcal.org to make your donation.

If a donor is not a lobbyist employer, they must file Form 645 with the Secretary of State in any quarter in which the donor has spent $5,000 or more on “other payments to influence” potential legislative or regulatory activity. If a donor is a lobbyist employer, they are already required to file a Form 635 every quarter, and must report “other payments” to influence potential legislative or regulatory activity in any amount, and itemize when a vendor/recipient is paid $2,500 or more in any quarter.

Contact IIABCal for more information on these reporting requirements.