California
The state’s insurance commissioner was treated to a lavish dinner by an insurance executive at one of
Los Angeles
‘ most luxurious restaurants as the
city burned beneath them.
Whole towns remained on high alert throughout January, forced to evacuate and seek refuge in shelters or at friends’ and family members’ places, wondering whether their houses had been destroyed amid constant wildfires that claimed 30 lives.
devastated immense areas of terrain.
The twisted truth was that the ‘fortunate ones’ were those consumed by fear.
Whether their insurance providers would eventually cover the claims?
For any damages they encountered.
Others were included as part of the
unsavory group with higher insurance rates
had risen to such exorbitant heights that they had to discontinue their policies, or had simply received notice from their insurer one day stating they were no longer protected.
At the same time, Ricardo Lara, who was responsible for ensuring insurance companies adhered to regulations, enjoyed a meal of sea urchin, lobster salpicón, and a rack of lamb, accompanied by two bottles of Leirana Albariño wine with Raul Vargas, the CEO of the Farmers Insurance Group.
On January 15, they were seated at a table in San Laurel, an establishment created by renowned chef José Andrés, offering dazzling and extensive vistas of Los Angeles.
On the same day, emergency personnel were scouring the ruins of the Palisades fire in search of the burned bodies of victims within the debris, while firefighters were still struggling to bring the Eaton fire under control.
An investigation by the
San Francisco Standard
claims Lara spent $30,000 meant for his campaign on upscale eateries and lavish dinners.
At the dinner on January 15, the overall cost of the meal, including the tip, amounted to $697.
During that event, Lara covered $234 of the expense by using a campaign committee balance established two years earlier to support a bid for lieutenant governor that didn’t come to fruition.
Vargas settled the remaining portion of the bill, as his firm ranks as the state’s second biggest provider of homeowner insurance.
During his tenure, Lara has faced repeated allegations of being overly friendly with the insurance sector, despite his duty to oversee it.
In her appointed position, Lara establishes rates in California and oversees the maintenance of a robust and competitive insurance marketplace.
California is facing an insurance crisis with insurers progressively withdrawing.
abandon regions they currently consider high-risk for wildfires and natural disasters
.
Between 2020 and 2022, insurance firms
decided against extending 2.8 million policies
or homeowners throughout the state. This encompassed 531,000 individuals in Los Angeles County, which was ravaged by the wildfires.
Shortly after assuming his position in early 2019, he found himself compelled to apologize when it came to light that he had accepted tens of thousands of dollars in campaign contributions from entities tied to the insurance industry.
He stated he felt “profound remorse” for what he did and promised to cease seeking backing from the industry henceforth.
In addition to his latest dinner, last year Lara charged two meal bills at swanky Italian restaurant Piatti to his campaign fund.
One of the inspections, starting from April 17, 2024, amounted to over $1,000. He referred to the gathering as a ‘campaign strategy session’ involving eight attendees.
Together, they placed an order for seven cocktails, eight glasses of wine, a bottle of Honi’s sauvignon blanc, and nearly every dish listed under the dinner menu, such as steaks, meatballs, olives, along with several types of desserts.
In 2023, he conducted four distinct gatherings at Baar Baar, an upscale Indian eatery located in Los Angeles.
During one such visit, he and some unidentifiable guests enjoyed a meal with a bottle of Cobb Riesling, an additional two glasses of wine, Hyderabadi lamb keema, shrimp ghee roast, and beef short ribs.
At the same time elsewhere, he and his companion asked for three Slumdog Millionaire cocktails as well as some additional beverages.
Carmen Balber, the executive director of Consumer Watchdog, expressed disappointment over Lara’s dinner with Vargas according to the report, particularly considering his previous apology.
It seems he’s blending rules with politics again. Perhaps ‘surprise’ isn’t quite right here, but it’s letdown. If this isn’t a campaign gathering, then what exactly does his campaign committee do? It appears nothing more than an off-the-books account.
In addition to the upscale dining spots, Lara is encountering significant backlash over his travel itinerary as well as policies aimed at benefiting insurance companies, potentially leading to premium increases of up to 50 percent.
The initial Senate committee hearing regarding insurance issues following the fires took place on March 12, 2025. According to an investigation, Lara was absent from this meeting.
ABC
.
Rather than going elsewhere, he made his way to Bermuda for a conference where he presented a 15-minute talk.
The Senate Insurance Committee conducts two to three important hearings each year, and the report found that during his current six-year tenure, Lara has skipped multiple hearings due to traveling out of state or country.
A representative from his office refuted the criticism, stating firmly: “The role of Commissioner Lara is to guarantee that California consumers have genuine options—rather than being limited to only fallback solutions.”
This process entails bypassing insurance firms altogether and dealing directly with the international reinsurance entities that back these companies. Approximately 40% of global reinsurers have their headquarters in Bermuda, where they handle billions of dollars in payouts—such as those related to forest fires.
He is striving to keep insurance companies in the marketplace and lure back those that have departed.
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