Insurance Industry Files Ballot Initiatives to Repeal Prop. 103

[realFedUp]

http://www.consumerwatchdog.org/?lk=4530172-4530172-0-19760-Vvd8dD3vL3UumXuaI6aETTUcTY1PYnaQ

NEWS RELEASE
January 5, 2006

CONTACT: Douglas Heller [phone] ext. 309

Insurance Industry Files Ballot Initiatives to Repeal Prop. 103, Raise Auto, Home and Business Rates by Hundreds of Dollars Per Year

Consumer Advocates See Rematch of $80 Million 1988 Battle

Santa Monica, CA -- Just days after the announcement of more insurance rate reductions under Proposition 103, the insurance industry has quietly introduced three ballot measures to undo these and other consumer protections of the 1988 ballot measure.

The proposals, submitted to the Attorney General for the November, 2006, ballot, would undo actions by the Insurance Commissioner announced just two weeks ago to make auto insurance premiums fair and reduce premiums for good drivers. The insurance industry initiatives would lead to immediate rate increases for California auto, home and business insurance and authorize Sacramento legislators to gut the rest of Proposition 103.

As a result of Proposition 103, California auto insurance premiums, which were second highest in the nation prior to the initiative, dropped to 20th after the initiative passed, according to the most recent data reported by the insurance industry. The average premium has fallen 22% in California, while it has risen an average 30% throughot the rest of the country since 1988. Consumer advocates warned of dire consequences should the insurance industry's new initiatives pass.

"California motorists, homeowners and businesses can expect to pay hundreds or thousands of dollars more every year for insurance if the insurance industry is able to trick the voters into passing their initiatives," said Harvey Rosenfield, the author of Proposition 103 and the founder of the Foundation for Taxpayer and Consumer Rights (FTCR). "Proposition 103 has blocked over $20 billion in rate increases in auto, home and business insurance, forced insurance companies to refund $1.2 billion to Californians, stopped unfair surcharges, and reduced the number of uninsured motorists. Later this year, it will reward good drivers with additional rate reductions. The insurance industry wants to steal these savings from consumers and that's what these initiatives will do."

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[kineneb]

1. figures. Slimebags. n/t