Attorney General No.


Secretary of State No.



AUTOMOBILE AND OTHER INSURANCE. INITIATIVE STATUTE. Establishes no-fault insurance for automobile accident injuries, covering medical expenses, lost wages, and funeral expenses. Accident victim may recover from responsible party only for injuries beyond no-fault limits; prohibits recovery for noneconomic injuries except in cases of serious and permanent injuries and specified crimes. Reduces average premiums for certain coverages 20% for two years. Limits future insurance regulation legislation. Requires arbitration of disputes over insurers' claims practices, limits damage awards against insurers. Prohibits agents and brokers from discounting. Increases Insurance Commissioner's power to prosecute fraudulent claims. Limits attorney contingency fees. Contains other provisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The effect of this measure on General Fund revenues from gross insurance premium taxes, currently paid by insurance companies and deposited into the fund, is unknown since the actual, net revenue effect of this measure will be determined by a variety of factors. This measure would result in an initial increase in the administrative costs to the Department of Insurance of approximately $2.5 million, and thereafter $2 million annually, payable from the Insurance Fund, supported by insurance fees and assessments. State and local governments may experience savings in court costs resulting from the specified limitations on legal actions.


Mr. Stanley Zax, 21255 Califa Street, Woodland Hills, California 91367-5005



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