California Proposition 31, Limits on Third-Party Claimant Lawsuits (2000)
The ballot measure was a veto referendum that successfully overturned California Assembly Bill 1309 from the 1999 session of the California State Legislature. By itself, however, Proposition 31 would not have changed the existing law; it would have become law only if Proposition 30 (which was defeated) had been approved. Proposition 31 would amend parts of Proposition 30, limiting to some extent when a third-party claimant can sue an insurance company for unfair claims practices.
Legal history of third party lawsuits
Text of measure
The ballot title was:
A "Yes" vote on Proposition 31 was a vote to uphold the provisions of AB 1309. The main provisions of AB 1309 were:
- Limit conditions under which injured party may sue another person's insurer for damages resulting from insurer's unfair claims settlement practices;
- Limit emotional distress claims;
- Limit property damage claims to those caused by motor vehicle incident;
- Exempt professional liability insurers from unfair claims settlement practices suit if professional's consent is required for settlement and professional withholds consent;
- Provide that an insurer requesting arbitration is presumed to act in good faith;
- Add requirement that state auditor report on effect of Proposition 30, as amended.
- See also: Fiscal impact statement
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 31. That estimate was:
- If the voters approve Proposition 30, this proposition would slightly reduce the fiscal impact that Proposition 30 would have on state revenues and have an unknown impact on state court costs.
- If the voters disapprove Proposition 30, this measure would have no fiscal impact on state and local governments.
- Official Voter Guide to Proposition 31
- Full text of Proposition 31
- Official declaration of the March 7, 2000 vote
- Smart Voter on Proposition 31
- Cal Voter on Prop 31
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