In a significant development for California’s insurance oversight, two Democratic contenders, one of whom has the backing of prominent progressive U.S. Senator Bernie Sanders, have secured spots in the race following Tuesday’s primary election.
Jane Kim, a leading figure in the progressive California Working Families Party, will face off against state Senator Ben Allen in the November general election. This contest comes at a crucial time when the state’s insurance sector is grappling with the fallout from severe wildfire disasters.
Kim, who previously served as a San Francisco supervisor, gained national attention as the political director for Bernie Sanders’ 2020 presidential campaign. With Sanders’ endorsement, she emerged at the forefront of a packed race with 11 candidates, capturing 26.8% of the votes with 83% of ballots tallied, as reported by the Associated Press.
In a campaign advertisement, Sanders expressed his support, stating, “We need candidates who are going to take on the political establishment, the economic establishment, fight for Medicare for All, and that’s what Jane Kim is gonna do.” His endorsement undoubtedly bolstered her candidacy in a competitive field.
Meanwhile, Allen, known for his legislative efforts to aid fire victims, holds 19.6% of the vote share. His policies and actions in response to California’s recurring fire crises have been central to his platform, setting the stage for a potentially impactful election in November.
The closest Republican to make it to the runoff was insurance expert Stacy Korsgaden, who had nearly 16%.
The California wildfires last year in Los Angeles have amplified the importance of the insurance commissioner. Some fire victims struggling to get claims resolved have called for current Insurance Commissioner Ricardo Lara’s resignation.
Insurance, as a result, has also been a subject of scrutiny in the governor’s race. Democratic frontrunner Xavier Becerra caught some attention for promising to cap homeowners’ insurance premiums, which some experts said a governor cannot do.
“I will call in the insurance commissioner,” said Becerra, a former state attorney general. “I will say, ‘I am going to call for a freeze. If you don’t want to go there, then I will call for an investigation of the way you are conducting your business.’”
While Becerra has insisted he would have the ability to do so, California voters passed Proposition 103, a landmark law that sought to protect consumers from arbitrary rate hikes by requiring insurers to get the approval from the state insurance commissioner before raising rates.
At a forum, Allen agreed that the governor does not have the authority. Kim didn’t say yes or no but noted it would be an “interesting case study.”