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June 30, 2000
people

California's Quackenbush resigns as insurance commissioner

Charles Quackenbush Embattled California Insurance Commissioner Charles Quackenbush on Wednesday accepted the inevitable and resigned. The speed of both the investigation of Quackenbush's activities and his resignation has been partially attributed to Internet technology used by political activists and a state committee.

The 46-year-old politician faced impeachment over his transfer of $12 million in settlements from insurance companies to nonprofit foundations he created and used to burnish his image, the San Francisco Chronicle reports.

The controversy isn't over yet for the former rising Republican star: he still faces both state criminal and civil investigations and a lawsuit demanding millions in repayment on the behalf of California taxpayers, the newspaper reports.

Quackenbush's resignation is effective July 10. He has drawn fire for months following news he allowed insurance companies to escape billions of dollars in fines for their mishandling of homeowner claims after the 1994 Northridge earthquake. The fines were reduced to $12 million, which went to nonprofit foundations Quackenbush established to allegedly promote earthquake awareness and consumer education.

None of the $12 million went to Northridge victims, but Quackenbush allowed more than $3 million to pay for his own "image" ads, the newspaper reports.

Internet-based efforts by at least two groups is credited with hastening his resignation, the New York Times reports.

The California State Senate Insurance Committee launched the first online effort with a Web site created to gather consumer complaints over the mishandling of Northridge insurance claims. The estimated 100 claims received detailed serious problems with the Insurance Department's actions, the Times reports.

As reported earlier by PNN, the Recall Quackenbush Web site created by political activist Sandi Webb featured an electronic petition form that could be downloaded, printed, completed and then mailed to the Secretary of State's office. The online form was downloaded more than 10,000 times during the first week, Webb stated.

The recall site also allowed visitors to send the site link and related information to others via e-mail.

The full version of the San Francisco Chronicle story can be found at:
http://www.sfgate.com/cgi-bin/article.cgi?file=/
chronicle/archive/2000/06/29/MN43260.DTL

Free registration may be required to view the New York Times article:
http://www.nytimes.com/library/tech/00/
06/cyber/articles/29calinet.html



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