Attorney General No.

SA89RF0048

Secretary of State No.

511

Description

STATE ADMINISTERED AUTO INSURANCE. AUTO CLAIMS COURT. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Replaces private auto insurance system with state administered program of required, basic auto insurance if Insurance Commissioner determines that average private premiums exceed Proposition 103's rollback level or that average percentage of vehicles without required insurance exceeds 15 percent. Specifies operation of program. Regulates attorney fees in vehicle accident cases. Creates "auto claims court" to resolve claims up to $15,000 under state issued insurance. Requires informal proceedings without attorneys or jury. Establishes consumer board. Provides penalties for violations. Permits statutory amendments by 2/3 vote of Legislature. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: If California Non-profit Insurance Fund is established, would incur one-time multimillion dollar General Fund loan (repayable within three years) to finance start-up costs, possible one-time multimillion dollar state administrative costs to change DMV registration cycles to coincide with insurance renewal dates, and ongoing multimillion dollar annual state costs for Auto Claims Court, offset by unknown savings in state and local court costs. Would cause ongoing multimillion dollar annual state and local government enforcement costs, possible increased state insurance tax revenues, and possible loss in motor vehicle license and registration fee revenues.

Proponents

Carmen Gonzalez, 3325 Wilshire Blvd., Suite 550, Los Angeles, Ca. 90010 Los Angeles County; Harvey Rosenfield, 3325 Wilshire Blvd., Suite 550, Los Angeles, Ca. 90010 Los Angeles County; Rob Lavis, 1942 Bonita Avenue, Berkeley, Ca. 94704 Alameda County; Bill Zimmerman, 3325 Wilshire Blvd., Suite 550, Los Angeles, Ca. 90010 Los Angeles County; Angelo Paparella, 3325 Wilshire Blvd., Suite 550, Los Angeles, Ca. 90010 Los Angeles County

Date

2-9-1990

Document Type

Initiative

Qualified

Failed to Qualify

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