Contribute To Your Legal Defense Fund - Enough Is Enough!
In dramatic and welcome announcements in late September 2023, Gov. Gavin Newsome used his executive authority to declare a state of emergency over the continuing property insurance availability crisis, and Insurance Commissioner Ricardo Lara announced his intention to make the most sweeping changes to California insurance regulation since Prop. 103’s enactment 35 years ago—all designed to stop the decay in California’s property and auto insurance markets.
These announcements, while both welcome and long overdue, signal the beginning of the next phase of our fight to restore competitive health to the California insurance marketplace.
What Is IIABCal Doing About It?
In late 2022, IIABCal decided “enough was enough,” and took aggressive action to persuade policymakers to address the insurance availability crisis. We launched Phase I of fundraising for our Legal Defense Fund, and used those resources to hire nationally prominent outside lawyers and actuaries to help us develop solutions to the property insurance crisis. We then formed an influential coalition of industries being severely impacted by the availability crisis to press the Governor, Commissioner and legislative leaders to take action. The “Sustainable Insurance Strategy” announced by Lara on Sept. 21 included all of the elements of the IIABCal plan!
But now, an even more critically important effort begins: The battle to shape the specific language of the amended regulations that the Commissioner has pledged to support. In order to maximize our opportunity to help the Department of Insurance craft effective, and legally defensible, amendments to the regulations, we will likely need to hire prominent experts yet again. That is what Phase II of our Legal Defense Fund Campaign is intended to support.
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 this donation may be deductible as a business expense. Please consult with your tax advisor or accountant to determine the tax deductibility for your business.
What We Need
In the second phase of our fundraising effort, we are hoping to reach our goal of $250,000. This will help fund the outside experts needed to provide input as emergency regulations are developed and implemented.
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 firstname.lastname@example.org to make your donation.
If a donor is not a lobbyist employer, they must file Form 645 with the California Fair Political Practices Commissioner 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.