A California administrator has ruled that a change in the definition of an insurance broker instituted by the former insurance commissioner is illegal.

California's Office of Administrative Law ruled Monday that former Insurance Commissioner John Garamendi's attempt to use a settlement as a precedent-setting rule was illegal and violated the state's statutes on creating such rules.

In October of last year, the Insurance Brokers & Agents of the West filed a petition with the OAL objecting to Mr. Garamendi's attempts to use a settlement reached with American Reliable as a precedent-setting agreement.

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