California insurance commissioner Ricardo Lara issued a Bulletin December 21, 2023 to all property and casualty insurers subject to the provisions of Proposition 103, namely personal auto insurance companies. The Bulletin is in response to complaints received by the insurance department on the use of waiting periods, questionnaires, and other practices that may be in violation of California law. The use of such methods may act as a barrier to the acceptance of otherwise qualified insureds and are being used to restrict, non-renew, or entirely refuse auto insurance coverage. The bulletin reminds insurers of statutory provisions and requirements, and the possibility of administrative enforcement actions for failure to adhere to such procedures. 

The provisions of Proposition 103 require that insurers publicly file all changes to rates, rating rules, eligibility, renewal, and underwriting guidelines prior to their implementation. Article 10, 1861.05(b) states that, "Every insurer which desires to change any rate shall file a complete rate application with the commissioner." A complete rate application includes all data referred to in selected Sections, and "such other information as the commissioner may require." This includes exhibits, templates, checklists, and questionnaires; meaning an insurer must file for and have approval before implementing these methods. An insurer's failure to file for approval may result in administrative penalties. 

The provisions of Proposition 103 also state that personal auto insurers in California are required to offer and sell insurance to anyone who qualifies as "Good Drivers." The requirements for "Good Drivers" are defined in statute and are not at the discretion of insurers. To be eligible as a "Good Driver" a person must have been licensed for at least three consecutive years, have no more than one point on their driving record, and were not principally at fault as the driver in a motor vehicle accident that resulted in bodily injury or death of any person. Anyone who qualifies as a Good Driver shall be charged at least 20 percent below the rate the insured would otherwise have been charged for the same coverage.