15 years of auto insurance has reduced the settlement of premiums in California

Given that the legislature met in California, the debate whether the regime of the health insurance industry, Wednesday, a new study of California, emblem of the initiative of insurance reform, Proposition 103, shows that the nation effective regulation of insurance has drastically reduced costs for consumers and is a model for the reform of health insurance.

“California’s Proposition 103 of experience proves that the nature and the way trains action of skyrocketing insurance rates is regulatory assets of insurance companies,” said Harvey Rosenfield, author of the proposal 103 and FTCR founder. ” In an age where people are currently the cost of their health insurance, it is scandalous that the state firm and justify their insurance premiums autoimmune disease, are admitted free but what they choose.

After the report published today:
* California auto insurance premiums, decreased by 7% since voters approved the emblem of the insurance reform initiative Proposition 103 in 1988, while prices nationally have 47%.

* In the fifteen years after the passage of Proposition 103, California was from 2 more expensive for the state liability auto premiums in the country until 21 (1989-2004, latest data available).

* Californians paid more than 52% in the year 1989, paid less than the national average auto insurance in 2004.

* In addition, to evaluate reductions in consumers, stability of the whole of the Ordinance on average earnings for California insurers.

After Proposition 103, insurance companies must justify changes in any event before the introduction of quotas higher. The law is the case for most lines of damage and accidents sets standards even for company profits, consumers can check data from insurers and challenge the proposed increase and it is anti-trust laws insurance companies, which are exempt from the law in most of the country. Proposition 103 insurance necessary for the repayment of $ 1.2 billion directly to consumers as compensation for excessive premiums during 1980.

AB 1554, by Assemblyman Dave Jones (D-Sacramento), Proporta for 103 health care by health insurance funds to justify their tax rates and authorization to waive the increase. Such legislation would create incentives for consumers by taking charge of health insurance overhead costs - including advertising, management, wages and CEO - who have the fastest growing component of expenditure in the health sector. AB 1554 by the Assembly of central California, the committee Wednesday.

CA a profitable market for insurers Proporta 103
Despite the insurance industry automatic negative reaction on the regulation of insurance in California, the strict rules of Proposition 103, was a more profitable for insurers of the nation as a whole, understood the study. For example, between 1995 and 2004, the average annual profits of auto insurers in California was 11.1% for the trafficking of persons deprived of auto insurance compared to 8.5% nationally.

After FTCR, settlement of insurance is used to make the most appropriate premiums for the insured against the guards and risks are inadequate, as is discriminatory, unfair and exaggerated prices.

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