Cafiero for Insurance Commissioner Press Release:
May 10, 2006

FOR IMMEDIATE RELEASE
Wednesday, May 10, 2006
Contact: Cres Vellucci, media relations 916/996-9170
larry4inscomm@earthlink.net

Attention: Political Desk

Insurance Commissioner Garamendi gains support
from rival Green Party candidate, who joins Democrat
in call for investigation of insurance industry 'blackmail'

SANTA CRUZ -- Insurance Commissioner John Garamendi -- who this week asked for a state and federal probe of what he termed "attempted political blackmail" by the insurance industry Ð received support Wednesday by the candidate for Insurance Commissioner from the rival Green Party.

Green Party Insurance Commissioner candidate Larry Cafiero said he joins Garamendi Ð who terms out this year in his current job -- in calling for an investigation into an apparent attempt to coerce Garamendi by some in the insurance industry because of pending auto insurance regulations meant to benefit consumers.

"This is blackmail and extortion, and the kind of corporate behavior which would land a living person in jail. It is unconscionable for the insurance industry to believe it can force its will on the public by threatening the Insurance Commissioner in this way," said Cafiero, a newspaper editor in Santa Cruz making his first run for statewide public office.

Garamendi reported he would seek an investigation by the FBI, the U.S. Attorney's Office and the state attorney general after a woman who he said represents the insurance industry or an insurance company contacted him through an intermediary and offered to drop an unflattering ad campaign about the state's pending auto insurance regulations. Reportedly, part of the deal was that he drop the regulations.

A group calling itself Californians to Stop Unfair Rate Increases announced it will run a $2 million "educational" advertising campaign, including television and mailers. The group is funded by five insurance companies -- Farmers, 21st Century, State Farm, Safeco and Allstate.

"A corporate-funded 'education' campaign can only mean one thing: biased propaganda which will only serve to line the pockets of the corporations," Cafiero said. -30-