What a Racket

Since January of 2007 Consumer Watchdog pocketed 100% of the state insurance intervener fees and since 2003 they’ve pocketed a cool $6.2 million. What exactly have consumers gotten for $6.2 million? That’s unclear.  In fact, it’s reasonable to assume they’re getting fleeced.

After all, Harvey Rosenfield set himself up for this sweet gig by creating the intervener business in the first place when he inserted this self-serving provision in to a ballot measure several years ago ensuring an indefinite source of income.

Our friend Steve Maviglio put together this great video explaining a little more:

So where’s the accountability? Where’s the audit? Insurance Commissioner Dave Jones enjoys a cozy relationship with Harvey and crew. Is anyone watching him as he hands over millions in intervener fees to Consumer Watchdog?

This might be one of the most suspicious rackets in government.  This relationship between Jones and Harvey and the commissioner’s ability to keep granting huge fees to Harvey et al is ripe for legislative inquiry.

Any why exactly does Jones need to keep granting intervener fees to Team Harvey and no one else? Is he protecting Harvey’s filthy monopoly?  Or better yet, why are interveners always needed?  Can’t Jones do his job without them?

This whole scenario screams for oversight.  We know from history that if no one is keeping an eye on the Department of Insurance the commissioners can get themselves into some shady situations with the money they control.


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