HomeMy WebLinkAboutCC RESO 12,977RESOLUTION NO. 12,977
RESOLUTION URGING THE STATE OF CALIFORNIA DEPARTMENT OF
INSURANCE TO MAINTAIN AN EQUITABLE SYSTEM OF TERRITORIAL
RATING BY AUTOMOBILE INSURERS AND OPPOSING THE CREATION
OF ONE STATEWIDE RATE
WHEREAS, the California Department of Insurance
will hold public hearings for the purpose of considering
whether to require automobile insurers to eliminate the
use of geographic areas in rate -setting, and
WHEREAS, the California Insurance Commissioner
has requested comment from concerned members of the public
and local government entities concerning the subject of
the hearings, and
WHEREAS, historically the practice of territorial
rating by automobile insurers was established in recognition
of public desire to eliminate inequitable distribution
of insurance costs, and
WHEREAS, statistics demonstrate valid cost
variations in providing insurance coverages between different
geographic areas, including medical coverages which pay
claims and vehicle repair claims, and
WHEREAS, the elimination of geographic area
from the practice of rate -setting will result in the
payment of higher premiums by the citizens of this
Community to subsidize the cost of insurance for citizens
residing in high -risk and high -cost communities;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of National City that the California Insurance
Commissioner and the California Department of Insurance
are encouraged to continue to permit automobile insurers
to consider geographic areas in the setting of rates in
order to ensure the equitable allocation of insurance
costs among all insureds in California; and
BE IT FURTHER RESOLVED, that a copy of this
Resolution be provided to the Commissioner of Insurance
for inclusion in the hearing record and to Assemblyman
Wadie Deddeh and Senator James Mills.
PASSED AND ADOPTED this 6th day of February,
1979.
ATTEST: