Does Prop 103 Allow Auto Insurers to Provide COVID-19 Rebates? Maybe Not

In a statement to the Mercury-News, California Insurance Commissioner Ricardo Lara pledged the California Department of Insurance would "be reviewing all insurance company actions to make sure money is returned to consumers, drivers and businesses in a manner that is not unfairly discriminatory...

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Bibliographic Details
Published in:Insurance Journal 2020-04
Main Author: Lehmann, R J
Format: Article
Language:English
Subjects:
Automobile insurance
Coronaviruses
COVID-19
Insurance commissioners
Insurance companies
Insurance policies
Insurance premiums
Insurance rates
Property & casualty insurance
Property and casualty insurance industry
Rebates
State court decisions
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Summary:In a statement to the Mercury-News, California Insurance Commissioner Ricardo Lara pledged the California Department of Insurance would "be reviewing all insurance company actions to make sure money is returned to consumers, drivers and businesses in a manner that is not unfairly discriminatory, is transparent, and which follows the spirit of California's strong consumer protections, including under Proposition 103." Passed in 1988, the Insurance Rate Reduction and Reform Act, better known as Prop 103, establishes a rigid regulatory structure for the filing and approval of property and casualty insurance rates in California. There are other optional rating factors that may be approved by the insurance commissioner via regulation, provided they are given less weight than the mandatory factors and that they have a "substantial relationship to the risk of loss."
ISSN:0020-4714