The California insurance industry is studying a state appellate court ruling that bars insurers from putting surcharges on uninsured motorists to fund lower rates for insured drivers.
Association of California Insurance Companies voiced "disappointment" with the ruling, which said that a state law that allows insurers to discount auto insurance premiums for drivers who maintained continuous coverage violates Proposition 103, which was passed by the voters in 1988.
The association pointed out that one impact of the decision, if sustained, would be to stop auto insurers from giving discounts to drivers who have no lapses in coverage when they switch to another insurer.
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