INSURANCE RATES, REGULATION. INITIATIVE. Provides minimum 20 percent reduction in certain rates for good drivers from January 1, 1988, levels. Requires companies insure any good driver in counties where company sells automobile insurance. Requires ongoing minimum 20 percent good-driver differential. Funds automobile insurance fraud investigations, prosecutions. Provides consumers comparative automobile insurance prices. Applies laws prohibiting discrimination, price-fixing, and unfair practices to insurance companies. Requires hearing, Insurance Commissioner approval for automobile, other property/casualty, health insurance rate changes. Establishes Insurance Consumer Advocate. Increases enforcement, penalties for fraudulent health insurance sales to seniors. Cancels conflicting provisions of Propositions 101, 104, and 106 including attorney contingent fee limits and prohibits future laws setting attorney fees unless approved by voters or Legislature. Authorizes insurance activities by banks. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Would increase state administrative costs by $8 million for Department of Insurance and $2 million for Department of Justice in 1988-89, varying thereafter with workload, to be paid by additional fees on the insurance industry. Would increase costs for Department of Motor Vehicles by $100,000. Would reduce state revenues from the gross premiums tax by about $20 million in first year if no other changes are made in insurance rates. Would increase revenues for Department of Insurance by over $500,000 annually from fees paid by insurance companies for fraud investigations.
Popular Vote Results
Y: 3849572; A: 40.9; N: 5562483; B: 59.1
20th Century Ins. Co. v. Garamendi: 8 Cal. 4th 416: 878 P.2d 566: 32 Cal.Rptr. 2d 807, 1994; Calfarm Ins. Co. v. Deukmejian: 48 Cal. 3d 805: 771 P.2d 1247: 258 Cal. Rptr. 161, 1989; Sanford v. Garamendi: 233 Cal. App. 3d 1109: 284 Cal. Rptr. 897, 1991; Lee v. Travelers Cos.: 205 Cal. App. 3d 691: 252 Cal. Rptr. 468, 1988
Patricia Ramirez, State Administrator, Mothers Against Drunk Driving (MADD); Carl Jones, Director, Congress of California Seniors; John Van De Kamp, Attorney General of California
Henry J. Voss, President, California Farm Federation; Ed Davis, State Senator, 19th District Vice Chair, Senate Judiciary Committee; Betty Smith, Former Chair, California Democratic Party
Rebuttal Against Author
Steven Miller, President, Insurance Consumer Action Network (ICAN); J. Robert Hunter, Jr., President, National Insurance Consumer Organization (NICO); Stephen Brobeck, Executive Director, Consumer Federation of America (CFA)
Insurance Rates, Regulation. California Proposition 100 (1988).