HomeMy WebLinkAboutMINUTES - 03141989 - 1.33 _ .� _ /01-033
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TO: BOARD OF SUPERVISORS
Phil Batchelor Y`=` Contra
FROM: County Administrator Costa
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March 9 1989 ount
�'•• ';• •:�° yDATE: poi�A c6i n `P�
SUBJECT: Legislation: Senate Bill 103 (Robbins)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Adopt a position in SUPPORT of SB 103 by Senator Robbins which
would require certain automobile insurers to renew policies and
subject them to penalties for failure to do so. In addition, SB
103 excludes from the Good Driver Discount provisions of
Proposition 103 any driver who has been convicted ;of driving
under the influence, or of driving at. excessive speeds, reckless
driving, or speed contests.
BACKGROUND:
Under the provisions of Proposition 103 , an insurance company can
cancel insurance coverage only for specified reasons. However,
evidence is mounting that some insurance companies are canceling
insurance coverage in an effort to escape from the rate roll-back
provisions of Proposition 103 .
Senator Robbins has introduced SB 103 in an effort to prevent
insurance companies from canceling insurance coverage. SB 103
provides that any insurance company which cancels or refuses to
renew insurance coverage to 50 or more of its covered policies
which expire between the 16th day of one month and the 15th day
of the following month can be required to offer to renew any
policy that it declined to renew or has canceled. If a
policyholder has obtained a replacement policy,::"" the insurance
company is liable to the policyholder for any increase in the
cost of coverage. The Insurance Commissioner is required to
impose a penalty against any insurer that is a non-renewing
insurer as noted above in the amount of 500 of the company' s
total automobile insurance premiums for the preceding year
CONTINUED ON ATTACHMENT: YES SIGNATURE:
X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE I e
X APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON March 14, 1989 APPROVED AS RECOMMENDED • _ OTHER
VOTE OF SUPERVISORS
X ..fes I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC:
County Administrator MAR 14 1989
Richard Rainey, Sheriff ATTESTED
Joe Tonda, Risk Manager PHIL BATCHELOR,CLERK OF THE BOARD OF
Senator Alan Robbins SUPERVISORS AND COUNTY ADMINISTRATOR
Les Spahnn, Jackson/Barish
M382 (10/88)
BY DEPUTY
Page 2
multiplied by the percentage of covered policies the company has
declined to renew.
In addition, SB 103 prohibits the Good Driver Discount from being
provided to any driver who has been convicted of driving under
the influence of an alcoholic beverage or any drug. Also
excluded from the. Good Driver Discount would be any person who is
convicted of driving at a speed in excess of 100 miles per hour,
reckless driving, or speed contests.
Senator Robbins has asked the Board of Supervisors to support SB
103 , which is already supported by the County Supervisors
Association of California. In view of CSAC' s support of SB 103
and in view of the need to insure that automobile insurance
coverage remains available for drivers while the Supreme Court is
determining the constitutionality of Proposition 103, it appears
that it would be appropriate to support SB 103 . In addition,
since SB 103 excludes from the Good Driver Discount drivers who
have been convicted of additional offenses which clearly indicate
that the driver is not a "good driver" , it appears appropriate
for the Board of Supervisors to indicate its support of SB 103 .
SB 103 is co-authored by both Senators Boatwright and Petris. SB
103 , as amended March 1, 1989, has a total of 21 authors or
co-authors.
B