Major reform and modernization could be coming soon to California’s intervenor system – the largest update of the system since the enactment of Proposition 103 in 1988.
Insurance Commissioner Ricardo Lara announced on April 20 that the California Department of Insurance has submitted its Intervenor and Administrative Hearing Bureau Fairness and Accountability rulemaking package to the Office of Administrative Law (OAL) for final review. The reforms aim to strengthen transparency, improve efficiency and protect consumer funds in the insurance rate review process.
Once approved, the regulations will set clear standards for intervenor compensation, enhance public reporting and ensure the department’s authority in the rate review process serves the public interest.
Key provisions include clarifying compensation standards, defining the role of the Administrative Hearing Bureau (AHB) in settlements, requiring AHB judges to provide regular status updates, expanding public reporting on the department’s website and improving access to proceedings with public postings of AHB calendars and documents.
The proposed reforms come after extensive public engagement, including multiple comment periods, with feedback from consumer advocates, insurers, legal experts and the public. Various groups, including homeowners and small businesses, have expressed strong support for these reforms. The department’s oversight has previously saved Californians $6.6 billion in premiums from 2019 to 2025.
The reforms are part of Lara’s Sustainable Insurance Strategy, which is aimed at modernizing California’s insurance regulations. OAL has 30 working days for its review, and, upon approval, the regulations will take effect shortly afterward.
“These reforms strengthen Proposition 103 by bringing long‑overdue transparency and accountability to every part of the rate review process,” Lara said in a press release. “Californians deserve to know that every dollar in this system is protected, and I will not allow any organization — insurer or intervenor — to operate without clear guardrails.
“Accountability is not optional,” Lara added. “Transparency is not an attack. It is the foundation of public trust, and these reforms ensure that every part of the system is accountable to the Californians it serves.”