California Insurance

The Office of Commissioner of Insurance of California was taken by a scandal that has cost the risk his job and the California Republican Party tottering some of their hopes on the rejuvenation of the 2000 election.

Commissioner Charles Quackenbush, one of only two Republicans, hold national office, is fighting accusations that it allows a half-dozen insurance companies to shortchange victims of the earthquake and, in return, businesses foundations to finance non-profit, which has up to funnel Slush monetary policy.

Mr. Quackenbush, said the governor to run or Senate USA, denies the accusations and said that in the worst case, he is guilty, but wet on administrative supervision.

”This is a witch-hunt,”he said recently.

Insurance companies and deny any malfunctions.

But committees of both houses of the California Legislature to examine how the federal Attorney General of California, Bill Lockyer. With each new revelation, and each new application of Mr. Quackenbush the resignation or the charges or judicial proceedings in criminal matters, taxes, officials Republicans wonder if the 2000 elections could be worse disaster than the election of 1998.

In 1998, the return of Democrats, she passed the office of governor, won control of both houses of the state, the legislature and the Republican operation left only a couple of Cabinet-level offices, insurance Commissioner and Secretary of State.

”We have certainly not need a scandal at this stage,’’said Senator James L. Brulte, the Republican leader of the Senate group and perhaps the most powerful Republican in the state.

More specifically, Mr. Quackenbush is accused of a favorite with insurance companies, in which he agreed not very well, $ 3 billion for shortchanging 1994, the applicants after the earthquake in Los Angeles, and they agreed that to $ 12.8 million in tax-deductible contributions to foundations he has to help victims of earthquakes - foundations, he said, he then used to funnel value friends and systems for his political career.

In one case, the legislative committees has been said, $ 263000 in cash was the creation of a football camp at which children and Quackenbush was awarded $ 500000 of the Greater Sacramento Urban League, whose board of directors M . Quackenbush.

In another example, according to other testimony, $ 400000 in the creation of money has been used for payments M. Quackenbush’s long policy of the consultancy team of aid for the establishment of foundations, and then in the team’s recommendation $ 100000 in the creation of money has been used for an investigation of pay for M . Quackenbush in regard to the political popularity, followed by a payment of $ 3 million for a television campaign in preparation on the earthquake featured prominent M. Quackenbush.

Mr. Quackenbush said a commission of inquiry that gedemütigt””von der””Wahrnehmung illegality on the part of foundations. He criticized the officials to whom he said he was responsible for carrying out the foundations.

”We are, of course, will have to try another way to him.”

The chairman of the committee, Assemblyman Jack Scott, said:”They seem clearly out of control.”

Officials for insurance companies, including Allstate, Farmers, State Farm and 20 century, emphasize that it never under one of 600000 victims of the earthquake 1994, one of the most costly disaster to strike and this country, which will cost businesses $ 16 billion so far. Still, companies say it was far less painful to finance the Quackenbush foundations as a threat to fight off the commissioner to take more than $ 3 billion in fines.

To ensure that companies are reluctant to his offer, some officials say, Mr. Quackenbush to get an indication of the nature of adverse messages article they could make if it imposes a fine.

As a basis that the money has been spent by companies fact, she was shocked, like any human being, to find out.

”The fight against the forest are not the kind of jolt we expect that money spent,”Steve Patterson, a lawyer farm state, said a committee of the legislative procedure.