Insurance
Governor Schwarzenegger rode a wave of public anger into office, as voters revolted against the vote-trading, favor-mongering, and money-grubbing that is the status quo in Sacramento. Yet Schwarzenegger's credentials as the man who will clean up the capitol have already worn thin, as he took millions of dollars of campaign contributions from the very special interests he pledged to sweep from the capitol and began appointing big business lobbyists to his cabinet.
As noted by the Los Angeles Times: "It may be that Schwarzenegger can't be bought, but the perception around Sacramento will be that those who contribute generously have a better chance at access and favors than those who do not. This perception isn't helped by the state Chamber of Commerce's underwriting of his 2,000-person inaugural lunch Nov. 17."
| Schwarzenegger on Insurance | ArnoldWatch Responds |
| On auto insurance reform and Proposition 103: Arnold accepted $38,800 from Mercury Insurance — an above-the-legal-limit contribution — on December 17, 2003, the day of a Sacramento fundraiser. | Mercury Insurance has a well-documented history of pay-to-play politics. Consumer Watchdog called on Schwarzenegger to return the illegal contribution. Mercury's CEO George Joseph was a major foe of Proposition 103, California's landmark auto insurance reform law. The contribution raised serious questions about Arnold's independence from insurance industry influence. |
| On rate regulation: Arnold's advisors have pushed for weakening the Insurance Commissioner's rate-review authority under Proposition 103. | Proposition 103 requires insurance companies to get prior approval of rate increases, saving California drivers billions since 1988. Weakening this protection would create windfall profits for the insurance industry at consumers' expense. Consumer Watchdog successfully fought to preserve and strengthen Proposition 103 throughout the Schwarzenegger years. |
| On workers' compensation reform: "We need to fix workers' comp immediately." | Arnold's workers' comp "reform" tilted the playing field toward insurers and employers. His initial reforms reduced benefits for injured workers while giving insurers greater discretion to deny claims. Consumer Watchdog and worker advocates documented how the changes harmed the most vulnerable workers while delivering windfall profits to insurers. |
Sources: Consumer Watchdog press releases, campaign finance records, and contemporaneous news reporting.