FTCR Alleges New Evidence That CA Insurance Commissioner Aide Destroyed Key Document

California Insurance Commissioner Steve Poizner's special counsel William Gausewitz destroyed a fax sent to him by an insurance lobbyist that appears to have served as the basis for a declaration he claimed to have prepared independently for submission to a Sacramento Superior Court this summer, according to new documents consumer advocates have obtained from the Department of Insurance through a Public Records Act request.

Last month, the Foundation for Taxpayer and Consumer Rights (FTCR) obtained a series of e-mails between Mr. Gausewitz and insurance company lawyers and lobbyists indicating that Mr. Gausewitz privately tried to assist companies' effort in court to have the Department of Insurance pay legal fees associated with a failed lawsuit the insurance companies brought against the Department of Insurance, rather than the insurers themselves.

Insurance industry lawyers later filed a document signed by Gausewitz in the court case -- but made it appear that the California Attorney General had filed it.

In a November 5, 2007 written response to FTCR, which requested a copy of the draft declaration that the insurance industry first sent to Mr. Gausewitz, the Department of Insurance stated:

"[Insurance industry lobbyist Jeff] Fuller faxed a proposed declaration to Mr. Gausewitz. Because Mr. Gausewitz was unwilling to sign the draft declaration prepared by the insurers, he prepared text for an alternative version of the declaration and provided that text to Fuller...Mr. Gausewitz then discarded the fax."

Consumer advocates said the destruction of a key public document added another layer of concern to the incident, which caused the group to call on Commissioner Poizner to fire Mr. Gausewitz. FTCR noted that without the original document, the public cannot know whether or not Gausewitz actually made even a single word change to the industry's requested declaration.

"By destroying documents, Bill Gausewitz tried to cover his tracks in order to avoid the appearance that he was abusing his authority and serving as an insurance company toady at the Department of Insurance," said FTCR's Executive Director Douglas Heller.

From: Insurance News Net (www.insurancenewsnet.com)