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.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
