UPDATE: New details have emerged regarding the travel expenses of California Insurance Commissioner Ricardo Lara as concerns intensify over transparency and accountability. Investigations by 7 On Your Side reveal that since January 2025, over 100 trips have been documented, including a controversial visit to Cape Town, South Africa last year.
The California Department of Insurance (CDI) has clarified that the funding for Commissioner Lara’s travel does not come from taxpayer dollars, but rather from a special revenue fund supported by fees and assessments from the insurance industry. This fund is appropriated annually by the legislature, raising questions about the use of industry fees for personal travel.
Earlier reports indicated that taxpayer funds were at stake, but the CDI emphasized that travel related to the National Association of Insurance Commissioners (NAIC) is funded by the NAIC itself, which receives an annual payment of $150,000 from the CDI’s operating budget. Notably, Commissioner Lara has reportedly covered his own expenses for personal days taken during these trips.
The investigation has also highlighted the absence of records regarding Lara’s personal spending during his 11-day trip to South Africa. Although several documents reveal expenditures related to safari security, the CDI confirms that there is no evidence that Lara’s personal safari expenses were covered by the department. The only costs documented were for the California Highway Patrol (CHP) security detail accompanying him.
In a significant clarification, the CDI stated that the full duration of security for Lara’s trips is included annually in a contract with the CHP, which was previously thought to be an additional cost. This contract allows CHP to determine security needs based on confidential assessments, raising concerns about the oversight of such expenditures.
As the investigation continues, the CDI has acknowledged poor record-keeping for some trips dating back to before Lara’s tenure. Reports indicate that over a dozen of his trips were not disclosed as required by law, prompting the department to update its filings for events funded by the NAIC.
The pressure mounts as calls for accountability grow louder from within the community, especially from wildfire victims who are urging Commissioner Lara to resign over perceived insurance loopholes. The implications of these findings could resonate far beyond the commissioner’s office, potentially impacting California’s vast insurance market.
What’s Next: As more information comes to light, stakeholders and the public will be closely monitoring the CDI’s actions and any further developments in this ongoing investigation. The urgency for transparency in the use of industry funds continues to be a critical issue.
Stay tuned for updates as this story develops, and join the conversation on social media as the public demands accountability from California’s insurance leadership.
