California Proposition 31, Limits on Third-Party Claimant Lawsuits (2000)

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California Proposition 31 was on the March 7, 2000 ballot in California where it was defeated.

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.

Election results

Proposition 31
ResultVotesPercentage
Defeatedd No4,994,36171.7%
Yes 1,979,780 28.3%

Legal history of third party lawsuits

Chart prepared by the LAO to illustrate the legal history of third party lawsuits in California up through 2000














Text of measure

Title

The ballot title was:

Insurance Claims Practices. Civil Remedy Amendments. Referendum.

Summary

The summary of the ballot measure prepared by the California Attorney General read:

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.

Fiscal impact

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.

See also

External links