California Continuous Coverage Auto Insurance Discount Act (2010)
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The California Continuous Coverage Auto Insurance Discount Act (09-0028) may appear on the 2010 ballot an an initiated state statute. If it passes, it would allow insurance companies in the state to give what are known as "persistency discounts", or discounts for those who have had continuous auto insurance coverage.
Christina L. Wilson is the official proponent of the measure.
In its infancy, the proposal has drawn criticism from Michael Hiltzik, a Los Angeles Times columnist, who says it is "essentially the latest attempt by Mercury to eviscerate Proposition 103. That's the 1988 ballot measure that dramatically reshaped insurance regulation in this state by giving an elected insurance commissioner the authority to approve property and casualty rates before they go into effect."[1]
Proposition 103 forbids insurers from setting their rates based on whether or not a customer has previously had an insurance policy.
Sponsors
"Californians for Fair Auto Insurance Rates" (CFAIR) supports the measure. Mercury Insurance is a leading sponsor of the initiative. Through early November, Mercury Insurance had given $1,000,000 to CFAIR.[2]
Opponents
"Consumer Watchdog", a group based in Santa Monica, opposes the initiative. They have filed two competing initiatives.
A spokesperson for the group said they believe that the real impact of the initiative sponsored by Mercury Insurance will be to charge more, or deny coverage altogether, when an insurance applicant has a gap in coverage.[3]
Criticism of ballot title
Harvey Rosenfield, who wrote Proposition 103 in 1988, criticized Jerry Brown, the California Attorney General for re-writing the measure's ballot title. The ballot title was re-written in October after its supporters provided a revised version of their initiative. The revised ballot title does not refer to the fact that insurance premiums will go up for some drivers if the initiative is approved, whereas the first version of the ballot title did allude to that reality.[4]
Mercury General, a leading sponsor of this initiative, gave $13,000 to a Jerry Brown campaign committee in June 2009.
Brown's office said they re-wrote the ballot title after initiative sponsors submitted a revised version of their proposition. Brown's critics say that the revised version is not different enough from the original version to justify the change in ballot title.
Related initiatives
- California Stop Insurance Overcharges Act (2010)
- California Prohibit Discrimination in Insurance Rates Based on Policy History (2010)
External links
References
- ↑ Los Angeles Times, "Mercury General using guise of benevolence to assault Prop. 103", July 2, 2009
- ↑ Capitol Weekly, "Initiative backers submit paperwork promising a busy 2010 cycle", October 22, 2009
- ↑ Capitol Weekly, "Insurers, critics face off over customer ‘discounts’", November 5, 2009
- ↑ San Francisco Chronicle, "Jerry Brown accused of caving in to donor", October 29, 2009
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