California Insurance

Direction: Four months after Californians to reduce the price of insurance, insurance companies are fighting hard for action, the influence on how the policy are sold, prices and regulated throughout the country.

Four months after Californians to reduce the price of insurance, insurance companies are fighting hard for action, the influence on how the policy are sold, prices and regulated throughout the country .

The fight has reached a height high Tuesday of the Supreme Court of the State where the insurer argued that the request for a 20% rate Rollback unconstitutionally mingles with its ability to realize a fair profit.

The restoration was approved in a referendum organized in close collaboration in November. Assekuranz speakers have said, they lose $ 4 billion per year, the benefit, if allowed to stand.

In a consultation marked by intense questioning by the judge, both sides clashed on the question of whether electricity, unregulated prices for cars and things are exaggerated and that the restoration is unjust and arbitrary. Markets in turmoil

The rate cut was delayed by the court, which has 90 days to submit its decision. In the meantime, the insurance market in California, the largest nation, has been fighting with insurers might leave the country and attempted a point to raise their prices.

Since the passage of the action began, have an impact Federal, according to the consumer price index advocate Ralph Nader, said that other countries, even closer look at the industry for the control and reducing their profit margins.

A vote in 1978 in California to reduce taxes inspired similar actions throughout the nation.

Insurers say that if the Supreme Court of restoration blocks of 20 per cent below the prices charged in November 8, 1987, all the insurance measure must be annulled.

Frank Rothman, a lawyer for insurers, what is called an action Köder”und”Schalter in motion, where voters were attracted by lower interest rates to approve the whole package.

The measure requires that insurers, including those of automobile, homeowners and other forms of business insurance, freezing their tax rates lower in the new levels until next November, unless an insurer can show an immediate danger of bankruptcy.

The automobile insurance rates are 20 per cent more for drivers with good records. Assess guidelines

The measure, which are not for the life or health insurance, demand for a stronger control over the industry, government authorization for future rate increases and new guidelines for setting different rates.

The assurance of the economy increased from $ 60 million for the fight against the referendum last fall, one of the most costly election campaigns in history.

The action to support the vocal cords of a number of politicians, does not return Proposition 103 during the campaign.

Among them is Attorney General John Van de Kamp, a leading candidate for prefect of next year, were in favour of the action yesterday. It was the second time he has personally to the Supreme Court since he took office in 1982.

”It is laziness, there is waste, and there is inefficiency in the insurance sector,”he told the court. ”The voters have clearly expressed their indignation.”The event also served as a test of the seven members of the Supreme Court, which has been proved to be a rather conservative and pro-business position as new members were appointed in recent months.