Consumer groups ask CA governor to halt insurance industry discussions, say they've been left out

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Congressman Garamendi says any proposal passed in this legislative session would be bad news for consumers. 'If they succeed, guaranteed California policy holders are going to once again be screwed by the insurance industry.'

Information floating around Sacramento points to an industry push for a major change in California's insurance regulations.Information floating around Sacramento points to an industry push for a major change in California's insurance regulations.

"Rumors are abundant, but the thread through all of this is the consumer groups -- we have asked -- have been literally excluded from the conversation and negotiations by the insurance industry," says Robert Herrell, head of the Consumer Federation of California. Ralph Nader is concerned, too. "So this means that a lot of the deals that are going to be cut will be cut in secret. There won't be public hearings and groups like Consumer Watchdog will be put on the sidelines," he says.

However, industry group the Personal Insurance Federation of California says: "We do not and have not had a legislative proposal."

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