Bannister, in the Pocket of Experience, Eyes the Commissioner End Zone
By Robert Warne - January 18, 2002What do Wes Bannister, John Elway and Abraham Lincoln have in common? They all have won some and lost some throughout their careers, but they didn’t let their losses keep them from achieving their ultimate goals. Bannister’s determination to serve as California’s Insurance Commissioner is evident as he kicks off his third bid for the seat in Sacramento.
Bannister is a man accustomed to public service. He has served his community as a Huntington Beach council member and mayor. Bannister also served as the director of two water districts in Southern California. Since 1987 he has served on the California FAIR Plan Board of Governors to provide insurance for high-risk areas of the state. Along with his public service background, he has also run his own general insurance brokerage for the last 27 years.
In a candid discussion with adjustercom.com about the race Bannister answered the following questions for our readers.
a: What is different this time around than the previous two times you ran for insurance commissioner?
B: This is a totally different type of race. In 1990 [John]Garamendi was widely recognized as a senator, had money, a lot of support and looked great in all of his pictures. For me to win the primary that year was a fluke. Going into the general election, Garamendi had 39 percent name recognition and I had 5 percent. He spent $2.8 million of his own money and borrowed a million at the end because I was sneaking up on him. The Los Angeles Times endorsed me at the end. I told the Times that if they hadn’t endorsed me I might have won, because their endorsement scared Garamendi into borrowing the extra million.
In 1994 I wasn’t going to run. Then people started calling me and asking me to run. I didn’t have the support of the Republican Party that time. Because Gov. Pete Wilson was unopposed in the primary, the Republican Party had money and put a million into the [Chuck] Quackenbush campaign. I got clobbered.
This time the party came to me. Before, I had to start the “$99 chicken club” for those who didn’t want their names publicized for donating to my campaign. This time people have been sending me money. It is a big difference.
a: How has the Office of Insurance Commissioner changed since it became an elected position rather than an appointed one?
B: Since 1990 when the Insurance Commissioner’s Office became an elected position, we have seen it dominated by highly visible and highly ambitious politicians. Each has run for the office to position them for higher office. More important, they have used political ‘spin doctors’ as department employees to create name identification for themselves at the cost to the consumers of this state rather than knowledgeable insurance people.
Before 1990 the appointments made as insurance commissioner were selected because of their knowledge and reputation in handling insurance situations and few if any had political ambitions.
It’s time for somebody to come in who wants to be insurance commissioner.
a: What are your views pertaining to the problems facing California’s workers’ compensation market?
We need to get more companies writing workers’ compensation and bring back those that have left the state. We are currently experiencing a shortage of ‘product’ here in the state. As rates continue to rise, more carriers will get back in the market. If State Fund wasn’t holding the line, rates would be double what they are right now.
Another problem that needs to be addressed is the current deviation rates of up to 75 percent carriers are allowed to charge.
Fraud is also hurting the workers’ compensation system. With 50 percent of every premium dollar going out to fraud, I support a very, very tough anti-fraud effort. The discretionary budget needs to be spread out more evenly throughout the state to fight fraud.
a: Do you think there should be a workers’ compensation benefits increase?
B: I support a benefits increase. As for the current workers’ compensation benefits increase that Gov. Gray Davis is looking at, it needs to go through.
a: Can we have a benefits increase and still keep rates low?
B: Once we take all the waste out of workers’ compensation we really should be able to increase benefits and be able to keep rates down. If we could cut down on fraud, we could probably double benefits and still keep rates reasonably low.
a: What is your top priority if elected insurance commissioner?
B: After I’m elected I need to bring in the best people possible to run the office. We’ve got to have some leadership in there that knows insurance. A very important decision I will have to make is to select a good department chief and assistant commissioner. It will also be very important for me to work close to the front lines.
a: Do you have anything to say to California’s claims adjuster/examiner community?
B: In every campaign for insurance commissioner, my strongest and hardest working team has been the insurance agents, and believe it or not, the insurance adjusters. Really, those that handle the claims are the ones who make insurance companies look good.
a: Do you think the rules should be stricter regarding training and certifications for these individuals?
B: I support more continuing education for adjusters and more concentrated training specific to claims processing and handling of the particular line the person is working.
a: How has working 40 years in California’s insurance market, 27 of which you’ve owned your own general brokerage firm, prepared you for the position of insurance commissioner?
B: It is imperative that someone with a strong working knowledge of insurance be selected as our next insurance commissioner. My years of experience in California’s insurance industry have provided me the ability to anticipate the health of insurance companies before they begin failing in claims settlements and policy terminations. I also understand what it will take to maintain a viable insurance market in the state. My years of experience in the insurance business have also provided me with a first hand understanding of the consumers’ needs.
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