Proposition Summary

AUTOMOBILE ACCIDENT CLAIMS AND INSURANCE RATES. INITIATIVE STATUTE. Reduces bodily injury, uninsured motorist rates to 50 percent of October 31, 1988. or October 31, 1987, level, whichever is lower, adjusted for medical inflation. Limits motor vehicle accident recovery for noneconomic losses such as pain and suffering to 25 percent of economic losses, as defined. Prohibits attorney contingent fees greater than 25 percent of economic losses, as defined. Limitations not applicable to survival, wrongful death actions or actions involving serious and permanent injuries and/or disfigurement. Provisions expire December 31, 1992. Summary of Legislative Analyst's estimate of net state and local government impact: Would increase state administrative costs by about $2 million in 1988-89, varying thereafter with workload, to be paid by additional fees on the insurance industry. State and affected local governments would have unknown savings from reduced insurance rates and loss limitations. Possible reduction in court costs and court revenues could result from limitation on claims for noneconomic damages. Would reduce state revenues from the gross premiums tax by about $50 million a year for next four years if no other changes are made in insurance rates.

Proposition Number




Document Type




Popular Vote Results

Y: 1226735; A: 13.3; N: 8020659; B: 86.7

Election Type

General Election

Proposition Type

Initiative statutory

For Author

Richard Polanco, Member of the Assembly, 55th District Chair, Consumers for Lower Auto Insurance Rates; John Seymour, State Senator, 35th District Orange County; Mike Roos, Member of the Assembly, 46th District Assembly Speaker pro Tem Los Angeles

Against Author

Harry M. Snyder, Director, West Coast Regional Office, Consumers Union of U.S., Inc., Publishers, Consumer Reports Magazine

Rebuttal Author

John Van De Kamp, Attorney General, State of California; Gloria Molina, Los Angeles City Councilwoman; Edward V. Roberts, Former Director, California State Department of Rehabilitation President, World Institute on Disability

Rebuttal Against Author

Richard Polanco, Member of the Assembly, 55th District Chair, Consumers for Lower Auto Insurance Rates Proposition 101 means that every county, city, and school district in California will have millions more dollars for meaningful programs -- or rebates to taxpayers -- and less money going into insurance reserves. -- I strongly urge everyone concerned about local government and schools to vote for Proposition 101.; Don Roth, Orange County Supervisor Seniors should support Proposition 101 because we will receive the greatest benefit from it. -- Because we generally have older cars we will receive rate reductions of almost 50%. -- Vote YES on 101.; May Shotwell, Seniors Advocacy Services