Attorney General No.


Secretary of State No.



AUTOMOBILE ACCIDENT INSURANCE. INITIATIVE STATUTE. Mandates no-fault insurance for "non-serious" automobile accidents, covering defined medical expenses, lost earnings, other expenses; constitutes financial responsibility for insureds; disputes resolved by conciliation, arbitration. Restricts injury compensation to policy limits: $15,000 per person, $30,000 per accident, $5,000 property damage to others. Statutes exclude: non-economic loss, "serious injuries", motorcycles, defined vehicles. Maximum premium: "good driver", $220 to July 1, 1994, $300 to January 1, 1995; then as approved by Insurance Commissioner. Requires insurers offer coverage for economic loss, other expenses, serious injuries. Establishes insurer's coverage facility, sharing loss, profit. "Serious injuries" compensated through current fault determination procedures. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Requires state administrative costs to special funds of about $8 to $13 million annually, about one-half reimbursed by insurers. Potential multi-million dollar annual savings to the Medi-Cal program, to the state General Fund, and federal funds. Potential multi-million annual savings in court costs to the state General Fund and local funds. Unknown net annual effect on insurance revenues to the state General Fund.


Assemblyman Ross Johnson, 1100 N Street, #2-D, Sacramento, Ca 95814; Senator Frank Hill, 1100 N Street, #2-D, Sacramento, Ca 95814



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