California Proposition 101, Automobile Accident Claims and Insurance Rates Initiative (1988)
| California Proposition 101 | |
|---|---|
 | |
| Election date November 8, 1988 | |
| Topic Insurance | |
Status Defeated | |
| Type State statute | Origin Citizens |
California Proposition 101 was on the ballot as an initiated state statute in California on November 8, 1988. It was defeated.
A "yes" vote supported this ballot initiative to:
|
A "no" vote opposed requiring insurance companies to reduce the bodily injury liability and uninsured motorist portions of motor vehicle insurance rates and limiting claims for non-economic losses and attorney contingency fees. |
Election results
|
California Proposition 101 |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 1,226,735 | 13.27% | ||
|
|
8,020,659 | 86.73% | ||
Text of measure
Ballot title
The ballot title for Proposition 101 was as follows:
| “ | Automobile Accident Claims and Insurance Rates. Initiative Statute. | ” |
Ballot summary
The ballot summary for this measure was:
| “ | 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. | ” |
Full Text
The full text of this measure is available here.
Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:[1]
| “ |
Costs Department of Insurance. This measure would increase the Department of Insurance's administrative costs by about $2 million during 1988-89. In years following, these costs could be somewhat lower or higher, depending on workload. These costs, payable from the Insurance Fund, may require additional fees and assessments to be levied on the insurance industry. State and Local Governments. While some local governments purchase insurance, most "self-insure" by relying upon their own resources to pay for losses and claims resulting from motor vehicle accidents. The state also is self-insured against such losses and claims. Because this measure reduces certain types of motor vehicle insurance rates, and limits claims for noneconomic losses, it would result in unknown savings to the affected state and local governments. Courts. Because this measure places limits on court actions for noneconomic damage claims, it may reduce, to an unknown extent, annual state and local court costs and local court revenues. Revenues Insurance companies pay a tax, based on the amount of gross premiums they receive each year from insurance sold in California. These tax revenues are deposited in the State General Fund. This measure requires that the rates for the bodily injury liability and uninsured motorist components of motor vehicle insurance policies be reduced. These two components account for about 40 percent of total motor vehicle insurance premiums. The required rate reductions -- by themselves -- would reduce state insurance tax revenues by about $50 million a year. This estimate assumes that no offsetting adjustments are made in other insurance rates -- not restricted by this measure -- to compensate for these reductions. Whether such adjustments would occur is unknown. The rate reductions required by this measure will expire after four years, at the end of 1992.[2] |
” |
Path to the ballot
In California, the number of signatures required for an initiated state statute is equal to 5 percent of the votes cast at the preceding gubernatorial election. For initiated statutes filed in 1988, at least 372,178 valid signatures were required.
See also
External links
Footnotes
- ↑ University of California, "Voter Guide," accessed August 3, 2021
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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