October 13, 1993 |
Gov. Pete Wilson signed into law three bills that Insurance Commissioner John Garamendi--a likely contender for Wilson's job--said will cost California insurance customers hundreds of millions of dollars. Proposition 103 author Harvey Rosenfield also attacked the legislation Tuesday, saying it significantly weakens that 1988 voter initiative by watering down the commissioner's control over rates and relaxing antitrust standards designed to prevent insurance price fixing.
August 18, 1993 |
In the largest Proposition 103 settlement to date, Allstate Insurance Co. agreed Tuesday to rebate $110 million to California policyholders under the 1988 insurance rate rollback initiative. The 2.9 million refund checks, to be mailed within nine months, will average $66 for Allstate auto insurance customers and $25 for homeowner customers.
August 16, 1993 |
Safeco Corp. plans to pay $40 million to its California insurance customers in order to settle a four-year fight with state regulators. The payout was required under Proposition 103, a 1988 state ballot measure that required insurance rate reductions and some premium rebates. Since then, several companies have been arguing with California regulators over the amount of the rebate. A company spokeswoman said Seattle-based Safeco spent $2 million in outside legal fees on the fight.
June 26, 1993
Proposition 103 champion Harvey Rosenfield says he is leaving Voter Revolt, the organization that promoted the landmark 1988 ballot measure as a way to reduce auto insurance rates by 20%. Rosenfield said he will form a new group to fight the wars over putting Proposition 103 into effect and to contest a flood of insurers' requests for rate increases expected to come when a new law takes effect July 1.
March 26, 1993 |
State Insurance Commissioner John Garamendi on Thursday accused five life insurance companies of illegally refusing to do business with an agent who rebates part of his commissions to consumers. The action represents Garamendi's first attempt to enforce the law that made such discounting legal in California. Rebating became legal under one of the provisions of Proposition 103, the 1988 insurance rate rollback referendum.
March 2, 1993 |
Following his court defeat in a key Proposition 103 lawsuit, Insurance Commissioner John Garamendi says he plans to maintain a freeze on insurance rates while taking his fight to implement the 1988 premium-rollback initiative to the California Supreme Court. Garamendi and legal aides spent the weekend and Monday examining the 85-page decision Friday by Judge Dzintra I. Janavs of Los Angeles Superior Court in an effort to find the best avenue for appeal.
February 27, 1993 |
In a stunning setback for Insurance Commissioner John Garamendi, a Superior Court judge on Friday rejected his regulations for implementing Proposition 103, the sweeping insurance rate rollback initiative, ruling that they are unconstitutional. The decision, in a challenge by 20th Century Insurance Co. of Woodland Hills, means that the bulk of the rebates that consumers voted themselves in the 1988 initiative will be further delayed and may be far smaller than expected.
January 29, 1993 |
CalFarm, the insurance company that led the first legal attack against the Proposition 103 insurance reform initiative, has agreed to pay its customers $18.6 million in premium rebates and interest penalties, it was announced Thursday. CalFarm is the fourth major insurance carrier to give up the fight and settle with state Insurance Commissioner John Garamendi on the delivery of automobile and homeowner insurance refunds ordered by the voters in 1988. Garamendi has calculated that about $2.