SZ&M not part of CA investigation

SACRAMENTO: California’s investigation of insurance fraud in the wake of the 1994 earthquake (PRWeek, May 1) has focused on the conduct of state insurance commissioner Chuck Quackenbush and the dollars 11.5 million California Research and Assistance Fund.

SACRAMENTO: California’s investigation of insurance fraud in the wake of the 1994 earthquake (PRWeek, May 1) has focused on the conduct of state insurance commissioner Chuck Quackenbush and the dollars 11.5 million California Research and Assistance Fund.

SACRAMENTO: California’s investigation of insurance fraud in the

wake of the 1994 earthquake (PRWeek, May 1) has focused on the conduct

of state insurance commissioner Chuck Quackenbush and the dollars 11.5

million California Research and Assistance Fund.



Quackenbush set up the fund without input from Stoorza, Ziegaus &

Metzger, which had suggested the establishment of a charitable

foundation, the California Insurance Education Program. The firm was

paid dollars 50,000 to set it up and recruit an unpaid board of

directors, and received dollars 25,000 per month from the state to

manage the foundation’s activities. At no point was Stoorza’s conduct

questioned by the state.



The California State Assembly has hired a former federal prosecutor,

Matthew Jacobs, to assist with its Insurance Committee’s inquiry into

whether the Department of Insurance had the legal authority to set up

three non-profit foundations and divert the money from fines and

penalties imposed upon insurance companies into those foundations.



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