New Insurance Commissioner Jones promises to look out for consumers

Longtime Sacramento politician Dave Jones became California's seventh insurance commissioner Monday, promising an activist administration that will push for health insurance reform and look out for consumer interest – all while promoting a "robust" and competitive industry in the state.

The signature moment, literally, of Jones' evening inauguration at the Tsakopoulos Library Galleria in downtown Sacramento came when he signed an order that he said will force California medical insurance companies to put 80 percent of their revenue toward health care instead of profits or overhead.

"That felt good," Jones said jokingly after signing the regulatory order, "because as a legislator you can't do that."

Known for his dogged determination and ambition, Jones has a résumé that includes stints as Sacramento city councilman and state assemblyman. Before that, the Harvard-educated lawyer – who turns 49 today – served three years as an attorney in President Bill Clinton's administration.

His swearing-in before at least 1,000 whooping, clapping supporters represented a big political loss for the insurance industry. Jones built his legislative career taking insurers to task and pushing bills to tighten regulation.

The industry backed his rival, termed-out Assemblyman Mike Villines. The GOP businessman from Clovis needed the help, since state party leaders abandoned him for compromising with Democrats on tax increases in 2008.

With the direction of the state's $125 billion insurance industry on the line, the California Chamber of Commerce filled in the missing GOP money with $4 million spent through its political action committee, JobsPAC.

Meanwhile, "Jones for Insurance Commissioner 2010" took in about $3 million from January through mid-October, about 10 percent of it from trial lawyers, unions and other sources.

Jones won the office with 51 percent of the statewide vote, 13 percentage points more than Villines. It signaled, Jones said Monday, that voters want "a proactive insurance commissioner."

He promised to quickly apply new federal insurance laws; continue pushing for medical insurance premium regulation; protect consumers, especially seniors, from fraud; and bring back a branch of the department devoted to consumer education.

Jones briefly thanked his predecessor, Republican Steve Poizner, for smoothing the transition, but spoke in far more glowing terms of Poizner's forerunner, U.S. Rep. John Garamendi, D-Walnut Grove. Garamendi, the state's first and fifth insurance commissioner, was among several elected officials who attended the ceremony.

"Thank you for your advice and mentoring," Jones said, gesturing to Garamendi.

And what was that advice?

"I told him that the job of the department is to protect consumers. Everything flows from that," Garamendi said after the inauguration. "You need a healthy, well-run insurance industry, but never forget to always stand for consumers."