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COMMISSIONER GARAMENDI APPEALS NORTHRIDGE EARTHQUAKE SETTLEMENT DECISION


[ Policyholder Awareness/Preparedness Forum ]

Posted by tonyb on January 15, 2003 at 6:15:10:

SACRAMENTO, CA, Jan. 13 - Citing his responsibility to seek every legal remedy on behalf of California consumers and Northridge earthquake victims, California Insurance Commissioner John Garamendi filed to appeal court decisions upholding earthquake settlements negotiated under the Quackenbush administration. "California consumers were betrayed by Chuck Quackenbush. The sweetheart deals he made with insurance companies to settle alleged mishandling of claims shortchanged earthquake victims," Garamendi said. Commissioner Garamendi views the decision by Superior Court Judge Chaney to allow the settlements to stand as effectively denying the department an opportunity to review and properly address consumer complaints.

The agreements in dispute were forged by former commissioner Quackenbush who was driven from office in 2000 amid controversy over the alleged inappropriateness of the settlements and use of the funds generated by the settlements.



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