The California Chamber of Commerce is teaming with insurance groups to attack state disability insurance regulatory efforts in court.[@@]
The California chamber and the insurance groups are asking a state court in Sacramento, Calif., to stop the California Department of Insurance from imposing “underground regulations” on long-term disability insurers without going through a formal rule-making process.
The plaintiffs say in their complaint that the court should bar the California department from disapproving new LTD policies, from withdrawing approval for approved LTD policies, or from requiring insurers to identify LTD policies with provisions inconsistent with the department’s current standards;
The court also should require the California department to go through a formal rulemaking process before the department can take further steps to enforce new standards that the department wants to apply to all disability insurance policies, the plaintiffs say.
The California department cannot enforce the mandates until it goes through a formal rule-making process, the plaintiffs contend.
The suit names California Insurance Commissioner John Garamendi as the defendant.