HomeMy WebLinkAboutMINUTES - 03221988 - 2.1 TO- BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator
Contra
DATE: March 22, 1988 Costa
i COUnty
SUBJECT: Board Position on Proposed Insurance Reform Initiatives
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Board take neutral position at this time as respects endorsement of
any insurance reform initiative.
BACKGROUND:
The Board referred Supervisor Fanden' s request to the County
Administrator and Risk Management related to the Board' s position on two
proposed insurance initiatives. The Access to Justice ( aka Voter Revolt to
Cut Insurance Rates) Insurance Reform Initiative is supported by national
consumer advocate Ralph Nader, and would cut all liability insurance rates
for homeowners and commercial insurance as well as auto insurance by 20
percent, give another 20 percent discount. for "good drivers, " prohibit
basing insurance premium rates on where a 'driver lives, mandate stiff rate
regulation of the insurance industry, remove the industry' s anti-trust
exemptions, and make the State Insurance Commissioner a statewide elective
office rather than an appointee of the Governor. The No-Fault Initiative
is supported by the insurance industry. It would reduce auto insurance
rates, establish a no-fault auto accident compensation system, and limit
attorneys' fees in auto accident lawsuits.
These insurance initiatives are presently being circulated for
signatures in order to qualify for November' s ballot. There are six other
insurance reform initiatives currently being circulated. To qualify for
November' s ballot, an initiative must be filed by June 30, 1988 with
372,178 valid signatures statewide.
The County Supervisors' Association of California ( CSAC) and the
League of California Cities advises that their organizations take no
position on initiatives until after they qualify for the ballot. After an
initiative qualifies, the pros and cons of the initiative are put forth,
and it is analyzed by legislative analysts, CSAC, the League of California
Cities and other interested parties. At that time, those insurance reform
initiatives which have qualified for the ballot will undergo thorough
analyses, including actuarial studies, more complete data will be available
on them, and an informed recommendation can be made on what insurance
initiatives, if any, should be endorsed or opposed by the Board of
Supervisors.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
'RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND T ON OF BOAW COMMITTEE
APPROVE OTHER
SIGNATURE S :
ACTION OF BOARD ON MAR 2 2 199T APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TARN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
cc: County Administrator ATTESTED MAR 2 2 1988
CAO - Risk Management PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY
382/7-83
M ,DEPUTY
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If the Board desires more information on the above two insurance
reform initiatives and wishes to take a position before they qualify,
formal presentations on the initiatives can be arranged. Representatives
from the Access to Justice Group and the Association of California
Insurance Companies can attend a Board meeting and discuss the benefits and
pitfalls of the proposed initiatives.
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