California Insurance

Three days after Californians voted for a radical Rollback insurance payments, insurance agents and government officials say people pay higher premiums for hedging vehicles than before, least for some time.

Three days after Californians voted for a radical Rollback insurance payments, insurance agents and government officials say people pay higher premiums for hedging vehicles than before, at least for some time.

The reason is that some insurance companies are no longer writing Motoring policy in California, net lessening of competition in the confusion of the consequences of voting in the polls.

Thursday, the state Supreme Court stopped the action, in force until it stops the challenges of its constitutionality industry.

”There is no full competition,’’said Donald R. Stewart, Executive Director of the American Alliance agents, 600 independent agents in California is almost exclusively in automatic mode and personal insurance. Companies”are not in writing their best strategies, strengthening the market.”Options are less ”

The panic before the insurance calm today, after appeals by many firms in the market. But the Commissioner of Insurance of California, Roxani M. Gillespie said it expected insurance would be more difficult to obtain, until the case was settled.

Less”choice,’’she said, adding that people consider to be good insurance risks would be easy, but it would be more difficult than ever that the bad risks.

He was a man met on Thursday, when he went to the C & S insurance services cover here and said he had heard the good news about the law to cut insurance premiums by 20 per cent in California and wanted to buy the new reporting rate. The officers laughed and said, its main promoters had written again suspended self-insurance in California.

Like thousands of other Californians trying to buy insurance this week in a state where driving is almost as important as respiration, the man left confused and angry. But this afternoon, most of the 67 companies that had previously refused to issue new or renewed have been informed in writing the insurance policy, even if some companies with the policy of reducing costs stop them Issuing State, as the color. Those who had purchased insurance were forced to higher costs of policies.

Back on the market units Allstate Insurance Companies, Mercury General Corporation, Safeco Corporation and the Progressive Corporation.

”It’s back to business as usual, until the Tribunal cash it out,’’said Joseph Annotti of insurance intermediaries and brokers Independent Association of California. “He sees better Today ‘

But Shirley-Schilling, owner of C & S, said, with both of their media image, including Aetna Life & Casualty, said he would be outside the State, it had included the rates for the State assigned to risks Pool They are very high. ”But he sees better today,’’she said. Partisans of ballots measure argue that companies employ a tactic of consumer fear and intimidation of politicians. Harvey Rosenfield, management, consumer campaign for action, there is a charge by insurance companies zu”Erpressung and fear of the public.”

The measure, which cooperate closely past, national attention because California represents nearly 15 percent of the domestic insurance market and industry fears that the consumer is measured in other countries. Car prices in California are higher than in any other state except New Jersey and Alaska.

The measure would set aside rate of 20 percent below the level of November 1987, and apply to politics, cars, houses and most communications, but not for the health of the worker or compensation.

There were reports this week, real estate transactions could not be completed because the insurance is not available and that doctors and dentists have been some difficulties in acquiring fault insurance.

The California today the commissioner of insurance required by the auto insurer up its prices for a period of six months, while the compacts with the state, such as put into force a set of measures cross the initiative by voters in the last year.

The California today prescribed by the Commissioner of Insurance automobile insurance to raise their prices for a period of six months, while the compacts with the state, such as put into force a set of measures cross the initiative by voters in the last year.

Roxani Gillespie Commissioner took the initiative after the Farmers Insurance Group, one of the largest state of self-insurers, said last week that their prices increase by 5.9 percent above November 1 , And other insurers, they follow. Farmers was the first major auto insurer in California, a rate of growth since the transition of the initiative 11 months.

Ms. Gillespie said the cold, consumer protection, while the California Department of Insurance chooses confusion for the initiative to extend the mandate granted to 20 per cent in the restoration of automotive and other damage and accident d Business insurance premiums in California. A number of legal issues that block the system.

The initiative was followed closely by insurance companies and consumer advocates Federal, say, it is exciting to cut the rate movements in other countries with higher insurance premiums. Fairview Rate of Return

After a protest by several insurance companies, the California Supreme Court upheld the initiative in May, but at the same time, insurers must be the restoration, if they are denied a fair return. The court found not to define what a “fair return”, and a large part of the legal maneuver since focused on this issue.

Ms. Gillespie said at a press conference today in San Francisco, a definitive definition of “fair return” should be formulated as follows in the public hearings begin on October 30.

Ms. Gillespie was harshly criticized by supporters of the initiative too favourably on the insurance sector and too little aggressive in implementing the new law. In August, Ms. Gillespie violently initiative circles of men, as she said that most insurance companies would be exempt from operation on auto insurance and most of the operation would be well below 20 per cent.

But Ms. Gillespie, said today that all insurers, exceptions to the operation rate would now face additional control. Farmers Insurance”and any other company seeking an exemption from Proposition 103 Roll Back provision must open its books for inspection by public opinion, consumer organisations and the division of insurance, ‘ ‘, She said. “Zero”

Harvey Rosenfield, head of the rebellion of voters, the consumer organization that sponsored the initiative, said that action by the woman Gillespie proposed today, it is intended to change its position and paves the way towards greater transaction rate originally planned.

In fact,”we are back to zero,’’said Rosenthal Field.

Mr. Rosenfield, said Ms. Gillespie’s willingness to establish a fair return to the hearings provided amounted to a withdrawal of his statement this summer, they define themselves as fair annual 11.2 percent return on equity, number that governments Division of Insurance has been an average yield for the mission of the insurer accident and Germany over the past 15 years. The revolt of voters and other groups of consumers, that number of insurers has led to many benefits.

Ms. Gillespie said that the hearings would also decide as to implement measures to eliminate fluctuations in interest rates on the basis of place of residence and providing an additional operation to drivers of good discs.

Ms. Gillespie said that against the elimination of fixing on the basis of residence, because it could lead to higher prices than 70 percent of drivers, especially those of sururban and rural areas and lower rates taxation for those in large cities.

Edward Levy, Senior Vice President of the Association of California Insurance Companies, a group lobbying industry, “said Gillespie’s Aktion”nach remains unresolved the problem of evaluation criteria for an insurer can November 8,”if the initiative is taken into account.

Direction: A representative of the Allstate Insurance Company is the leader-off, witness this week the first public hearing by the California Department of Insurance, as a large auto insurer return should be allowed to earn 103 Proposal. The new law, adopted by voters in November, a warrant in-the-board Roll-Back in Car insurance premiums.

A representative of the Allstate Insurance Company is the leader-off, witness this week the first public hearing by the California Department of Insurance, as a large auto insurer return should be allowed to earn 103 Proposal. The new law, adopted by voters in November, a warrant in-the-board Roll-Back in Car insurance premiums.

Some consumer groups and industry representatives, it is expected that the place of the hearing, consumer advocates say that insurers have been overcharging motorists for several years in California, where a simple policy car costing thousands of dollars per year. Insurers are likely meters, California, in a swamp for them, with victories cut away from major decisions of the jury in cases of personal injury and medical costs skyrocketing.

Wayne E. Hedien, Chairman and Chief Executive Allstate, a unit of Sears, Roebuck & Company, the matters discussed in a recent interview. F. Allstate has sought permission to acquire 17 per cent of a return on their investment in California. How did you achieve? A. If one considers the returns needed to attract capital industry in general, to begin the return of a base of 8 per cent to 9 per cent. For this, you must be a risk factor widespread, the Exchange requires that this may be another 6 percent to 8 percent. Finally, you have to a few points on account of the value added to run the risk, in which the damage and accident. It is not our course began in California. It is not our creditworthiness. It is a dimension sufficient to satisfy investors yields requires. Question: You said that the game is over in California that health insurers automobiles.

What do you mean? A. and other businessmen, as in California, the situation carefully. You know that insurance beyond the impact of the economy. In fact, the situation is in California, is that people are telling you:”This industry will be allowed, the return of this amount, because I am mad, that prices are too high.”Question: If we allows you to earn only 11.2 per cent, which should be allowed to McDonald’s, for its Big Mac? When I think the Big Mac is too expensive, is that I must be allowed for the price? In other words, California, we are a true default setting for the future regarding how we start the Free Enterprise system? Question: What is the timetable for events in California? A. We are witnessing this week to justify our Rate of return demand. After these consultations is over, insurance Commission will come back in a short period of time - I hope, within four to six weeks - to give their interpretation of what we deserve. We will then say that is appropriate. In Massachusetts, we decided to stop the activity because we have not been able to earn reasonable returns. Question: Given the increase in wages in recent years, is the insurance of all types of less accessible? A. The main problem is auto insurance in cities. If one considers the Consumer Price Index and are you looking into the price of auto insurance in urban areas, you will see that prices are increasing faster than consumer prices over all. The factors that auto insurance prices are the same factors, rates of health insurance - hospital room bills and medical expenses. In addition, the cost of repairing cars is now much greater than in the past. The fact is that auto insurance rates, we have, for these others to reduce costs. If we can solve the problem in cities, we are going a long way to go to solve the problem of accessibility in the insurance sector. Question: What do you suggest? A. For one thing, we are partisans of one with a Low-Cost, No Frills policy, which would be accessible to all for, say, $ 180 per year. This policy, medical care for the insured. And so you define a system of insurance, you could bring another pilot only for serious violations. In most cases, no-fault, you can be reimbursed by your insurer. Question: If the profitability of the industry to continue to disappointing? A. The damage and accident insurance business in the industry are always under pressure and profits in 1990. The problem is that the continuation of very aggressive pricing policy. In mid-1990 things should begin to turn. How out of tax benefits, many insurance companies are forced to cast a glance at prices much, as in the past.

Direction: The California Supreme Court upheld today a ballot initiative voters here last fall, it would drastically reduce claims and automobile accident insurance and rigorous state regulation of the economy ’s insurance.

The California Supreme Court upheld today a ballot initiative voters here last fall, it would drastically reduce claims and automobile accident insurance and rigorous state regulation of the economy of insurance.

The unanimous decision is expected, the transformation of the insurance market in California, the largest in the nation, and now a part with more freedom to set prices without government intervention. Supporters hope, and the industry fears that the measure could spawn other similar laws, as here, too, a referendum in 1978, limited, that property tax increases.

Supporters called the decision by the Court of Justice a historic victory for consumers. But spokesmen for the insurance industry, said it was too early to predict the impact of the decision of the Court of Justice because signficant change would it easier for insurance companies win the game waivers reductions.

Given that voters in November in the campaign the most expensive country in American history, the initiative requires auto insurance companies bar damage and accident insurance premiums to 20 per cent less than to November 8, 1987. Exceptions would be only for the companies were able to show that ein”erhebliche the threat of bankruptcy.”

But the Court decided today to cite the process because of two clauses of the Federal Constitution and state constitutions, that waivers would be granted, it is possible to prove insurers, the new price is not sufficient to ensure ein”fairen profit and reasonable.”

The Attorney General John K. Van de Kamp, defend, before the referendum, the seven members of this court, called Urteil”eine Inside the park home run,”echoed euphoric descriptions of political and consumers for a plethora of Press conference around the state. “The decision of the rewrites rules’

”This decision written rules between Californians and their insurance companies,’’said Van de Kamp, democratic, a governor and candidate for the origin, a trailer with a ballot measure competitive in the November-choice. It should être”la end of sky high, Take-it-or-leave increased.”

The insurance and leaders of industry analysts have been amortized, approval by the government party was defeated, but it was not as obvious as it sounds maybe.

”It’s not as heavy as it appears at first blush,’’said Gerald Haims, an analyst at Seidler FMECA Securities in Los Angeles. Many insurers will be able to be a good example of what the right to exceptions, he said.

Requests for exemption from insurance companies is expected that the plethora of Insurance Commissioner’s office, Roxani Gillespie, who harms one of the most watched in the state. Ms. Gillespie, shortly before the authority, it is now anticipated, new scales bring fairness and verification of claims.

Technically, the rate reductiions, including interest, are immediate. But because the industry calls consumers are barely see the reimbursement checks for at least six months, said Joseph W. Cotchett Jr., the lawyer argued, the case of revolt of voter registration.

At Farm Mutual Automobile Insurance Company, James Stahly, a spokesman, said California’s largest auto insurer is expected that granted an exemption, the Tribunal under the expanded definition. ”We believe that our prices are reasonable, and we look forward to any request for reimbursement,”he said.

Even for the Farmers Group, Inc. from another state’s largest insurer, Leo E. Denlea, Chief Executive, said his company would immediately file for an exemption. ”We are pleased that the Tribunal insolvency rjected default,”he said. “A liaison interesting”

When applying exceptions, insurance companies are forced to publish their books to the public for the first time. Until now, California was the only major country where the rate of non-insurance records or approval by the Commission, said experts.

‘The Wrong Road to Auto Insurance”(Editorial, May 13) is right in principle, although probably optimistic in Proposition 103, impact on reducing auto insurance rates in California. However, the result of commercial insurance for lines, spectators in this Shootout, is not benign.

The result of Proposition 103 will be essential that insurance is difficult to find. This is because, in the commercial lines covering requirements for manufacturers, small entrepreneurs, hospitals, nurseries and other centres, it is difficult to determine a fair return from the losses are difficult to predict. The losses are not known for years or decades.

This is particularly true given that Proposition 103, by eliminating the exemption agreements between insurers at the state level, reduces the opportunity for insurers, the data necessary to determine rates. More Proposition 103 has politicized the issue by an elected with a clear preference for low prices.

Insurers have contributed to limiting their heads in this area, and banks, while the loan maybe for commercial lines, are reluctant to fill a capacity of the vacuum lines for personal risk. The insurer insolvency rate has increased, appears in large part to be supplied by commercial insurance ventures.

Proposition 103 can not, in essence, but benign for automotive consumers. The irony lies in the fact that commercial insurance consumers may refer to genuine difficulties in finding insurance in the next cycle of renewal. David A. OLSEN New York, May 17, 1989

The writer is president of Johnson & Higgins, an insurance brokerage.

The California Supreme Court, ruling on compliance with key provisions of the comprehensive insurance reform initiative that has been raging debate on the issue, making a fair profit for insurance companies.

The California Supreme Court, judgement on compliance with key provisions of the comprehensive insurance reform initiative that has been raging debate on the issue, making a fair profit for insurance companies.

Even when it strengthens the efforts by consumer demand in other countries to reduce insurance premiums, stopping met on Thursday as an unconstitutional provision, the insurer would have been vacated by the initiative rate charge procedure if it einer”erhebliche threat of bankruptcy. Instead it”, the insurer reserves the right to earn a return”,” the Tribunal said, and the rate should be.

But the court gave no definition of “fair return” in fact happen that the question of insurance commissioner of State, Roxani Gillespie. Carey Fletcher, a spokesman for the California Insurance Department, said that the Department was still studying the problem and that Ms. Gillespie, was on holiday in the country, had not yet reached any conclusions.

Accordingly, it remains unclear if the insurer in California, the nation’s largest insurance market in late reduce their tax rate of 20 percent or more, that the initiative requires.

While the Court’s decision is resolved, the industry is much stronger than in California, Ms. Gillespie’s approach is crucial for determining the initiative on the financial impact of industry, leaders, defenders Consumers and analysts said Friday. Terms of Rollback

The initiative Proposition 103 was passed by voters in November last year and immediately challenged before the court on insurance economics, who said the limits would be that many companies lose the money and the judgement of the activity in the state.

The initiative called for the restoration rate of 20 percent or more by automobile and other forms of damage and accident insurance business, including homeowners and most of the communications and abuse. The initiative has no impact on life insurance or Workers’ Compensation.

The insurance industry takes approximately $ 22 billion per year in California from premiums of the policy concerned by the initiative. Automobile insurance accounts for almost half this figure. Typically, California, the nation’s self-insurance third highest, behind New Jersey and Alaska.

D’hope they can prove their prices are not excessive, many insurance companies, their operations in California, said last week they would be under their premiums and Ms. Gillespie Petition for an exemption. Among them was the State Farm Mutual Automobile Insurance Company, the largest state of self-insurers, Aetna Life and Casualty Company and the Farmers Insurance Group of Companies. No company is known only to reduce their premiums, after the decision.

”I think there will be no rate operation of auto insurance companies,’’said William B. Snyder, president of the government commission staff Insurance Company, another large insurer in California. What is fair? The debate on what should be the performance of a complex and controversial and could lead to that more legal recourse is excluded. Insurers and the sponsors of Proposition 103 differs considerably in the right standard.

Said one analyst, it would be almost impossible, a single standard for a “fair return”, which would be reasonable and fair. For one thing, inefficient companies with higher costs of operations, can derive their low Return on Equity as a justification for premium increases, the bottom line is rewarded for mismanagement.

In addition, certain types of insurance can be more profitable than others. The industry argues that, for example, auto insurance is at best marginally profitable in California, many companies are losing money. Given that several companies offer several lines, it would be difficult to find a fair profit default for all.

The California Supreme Court yesterday upheld an insurance reform action by the voters of California in 1988, requires insurance companies to reduce car insurance premiums, the Commissioner announced publicly funded broader power to control prices and profits.

The decision paves the way free for the Commissioner for insurance companies for reimbursement as $ 1 billion to millions of customers in auto insurance in California. The court unanimously, also confirmed the authority of the commissioner to require the 700 insurance companies in the state to obtain a permit from the game for all changes to damage and accidents, owners house.

Before the proposal was adopted in California freely insurance companies, that the market rate contribute, without the consent of supervisors needed before consultation. The major economies

“Over time, which is to protect consumers in the state, billions of dollars in premiums,” said Harvey J. Rosenthal Field, an author of what was known as Proposition 103 in the state of the election of 1988 and an advocate of insurance reform. He credited the proposal for a slight decline in automobile insurance rates since 1988, faced with increases in the two previous years.

Insurance companies fought the ballot papers bitter action in 1988 and in the courts, after being adopted. In arguments before the state Supreme Court, as they discussed the proposal and the action of the Commissioner were inadmissible because they amounted to a confiscation of property and did not admit that they deserve adequate return.

“This is a bad day for free enterprise,” said Kim Brunner, a vice-president of State Farm Insurance, which is based in Bloomington, Ill. State Farm challenged, if this is due to a refund automobile insurance, which Proposition 103, and presented a pending application with the Commissioner for an increase of 8.3 per cent of owners of property insurance.

Mr. Brunner and insurance of the economy analysts said they were worried that the Commissioner of authority, for a price level that corporate profits would result in too little profit to grow and prosper . You said that the Commissioner of the target profit, or a yield of 10 percent over the company’s capital, was too low. The Commissioner with a return of 10 per cent for calculating refunds.

A top judge in Los Angeles last year an agreement with most of the arguments of the company, but in the context of an appeal, went directly to the status of the Supreme Court, businesses are lost . The opinion of Justice Stanley Mosk said insurance companies “violates property rights would not be a case of” Deep financial, but pointed out that the division of insurance has had to consider specific rules in case of rigueur.

So far, 29 of the 700 insurance companies of the activity in California have paid $ 833 million of refunds, or an average of about $ 117 to each of more than six million policyholders. Of the 29, 10 companies were signed by the Commissioner to pay refunds and 19 volunteers.

Four others were undertaken by the Commissioner to pay refunds, but they refused. The largest amount owed by one of them is $ 235 million by the Government Farm, the state of major insurers. Other large companies, which have not yet paid refunds USAA, Nation Wide, 20 Insurance and Farmers century. Among the 10 companies that are paid as a command, the payments are, on average, approximately 48 percent of the amounts initially requested by the Commissioner.

In the case of the 20 century, have lost more than half its capital in the earthquake in Los Angeles earlier this year, state officials said they would negotiate a solution to $ 106 million through insurance, so the ability to pay the company is not threatened by the refunds. “Less attractive”

“I do not see export refunds as a matter of life or death for companies, regardless of the state,” said John Snyder, Senior Vice President at AM Best & Company, a company of insurance assessment. “What I do worry, however, is that the Commissioner of the Authority supervision, not only prices but also insurance company profits, the State could very well make it less attractive.

The California Insurance Department acted today to force the insurance industry to pay $ 2.5 billion discounts to consumers. A spokesman for the industry has indicated that it would certainly take the fight to the courts.

In the latest efforts aimed at the introduction of the quota cut provisions in the insurance business anchored initiative of the revision by voters almost three years, the National Commissioner of Insurance John Garamendi outlined new rules, says it would lead to discounts of 20 million automobile owners, owners and fire-political, indeed, in 1989. A says Garamendi, discounts for auto insurance, average more than $ 100 for a car this year.

If it resists Court challenge, the rules are also as a basis for the division of insurance the future of the establishment of calculations and could lead to reductions in current prices of certain companies. Reserved on operating costs

The plans include a formula for determining the profit margin that insurers. And they set limits for the first time in the offices of insurance operating and labour costs by forcing companies, including the cost of certain shares of their income to pay for them from its profits, but rather by an increase in prices.

Harvey Rosenfield, president of the revolt of voters, a group defending the rights of consumers actively in the effort to revise insurance, the new rules say “a historic step for both consumers and insurance companies have indicated that they were inciting similar moves by other states.

But the regulations have been condemned by insurers are not feasible, and it would be unfair to the industry and trade group said it would challenge the plan in court. Such a challenge would likely lead to a revision imposed a state of the insurance sector in California, for a long time already run out of steam, drag for months if not years.

The plan is 35 pages of Alice in Wonderland regulator, “said Bob Gore, a spokesman for the Association of California Insurance Companies.” Insurance Pricing by the underlying costs of litigation , Medical care and fraud, and these provisions do about these problems. It is an attempt to paper over a problem that you will not. “Voter Initiative

The revision initiative known as Proposition 103, was closely supervised by voters in the year 1988. He asked for radical changes in regulating the insurance industry, including the creation of an Insurance Commissioner chosen Post and narrow restrictions increases.

But the most controversial provisions of its price on demand automotive and other experts and accident insurance are reset to zero across the board for one year, 1989, at a level 20 percent lower than the act in November 1987. A one analyst said restoration of this magnitude far greater than the restoration which was announced today, would have been $ 4 billion in rebates to consumers.

The passage of Proposition 103 was the highest expression of the dissatisfaction of consumers, nor with the automobile and other insurance rates, and has triggered similar measures in other countries. But it was a loser Gerangel legal and policy since its adoption. Not only have rates operation has not yet entered into force, but auto insurance in California, already among the highest in the nation, to stand for many people.

The California Supreme Court decided that the operation of the year 1989 would be admissible only if it allows insurers a “fair” performance. Always there, industry and the insurance sector in the department of litigation, which represents a fair return. 10 percent yield

Under the rules developed by Mr. Garamendi was elected during last year by a platform of consumers, the insurer would have the right to earn a return of 10 per cent of its capital. Mr. Garamendi’s predecessor as insurance commissioner, Roxani Gillespie, had proposed that returns allowed 11.2 per cent. Ms. Gillespie’s sub-plans, most insurers would not be taken off all performance reports for consumers.

In an interview, Mr. Garamendi said that new rules would be a single undertaking on the basis of next week and that the insurer would then, as I said, too many discounts to holders of 1989. He said that reductions ranging from 20 per cent for some companies to zero for others.

John Garamendi, California’s first elected insurance commissioner, there are 500 was angry at the failure of Executive Life Insurance Insurance Company, answering their questions and try to allay their fears and receive a warm response, as he promised, “I work for you.”

But in almost the next breath, Mr. Garamendi felt compelled for the “miracle, I am not an employee”, when it comes to evacuating the wreckage of Executive Life.

On insurance, “said Garamendi gloom of the public meeting on Friday, there are real risks of financial losses in the wake of his capture Los Angeles insurers in the last month. And he repeatedly reminded his audience that problems of Executive Life, which had invested in high-risk “Junk Bonds”, had their roots in the coming months and years before he took office in January.

A little more than four months after the beginning of his tenure as the Regulatory Authority California insurance, Mr. Garamendi, a democratic state, the former legislator, is the point of human beings while trying to solve what may be the worst crisis of insurance nation. His management of the situation go a long way toward determining whether insurance is potentially devastating losses escape, and could be key in determining whether the life insurance industry can save his reputation as rock solid financial stability .

Its performance is also observed in Washington, where Congress is discussing whether the system of Heads of State of the State regulation is appropriate to monitor the insurance business, more and more complex. And it is well observed in other countries, including many in California’s leading role in the renewal of insurance in a post-Commissioner, including consumer protection and not to its traditional role of industry support to develop.

Mr. Garamendi faces an enormous task. Not only is it with the collapse of Executive Life, a subsidiary of First Executive Corporation, but also the seizure last week by another insurer with a huge burden Junk Bond Portfolio: the first capital Life Insurance Company, a Unity of the First Capital Holdings Corporation.

The actions against the leadership and the first capital of life are the greatest failures in the insurance sector. Including the customers of the unit Executive Life in New York and First Capital, a subsidiary in Virginia, who both now under the control of supervisors in these countries, around one million policyholders and pensioners federal risk losses in the worst case, up to billions of dollars. Chance to build reputation

Mr. Garamendi, 46 years old, a former college football players and Peace Corps volunteer, said a strong political ambition, the crisis has a chance to build a reputation in California and across the country as a strong-minded, ‘Regulatory Authority for a very specific industry, affects almost all consumers. Mr. Garamendi said his goal is that the California Insurance Department “the best agency of consumer protection” of the nation.

But the role of the State, the Commissioner believes that the undeniable political risk for Mr. Garamendi. While he is eager to see how an aggressive consumer advocate, he helped to avoid, he promises not to be able to maintain such persons as at Friday’s Executive Life collection of clients, perhaps on itself whether it should be a day to tell them that their savings and pensions lost.

In an interview, Mr. Garamendi distracted questions about political risk, saying its mandate of four years “is like a game of four quarters, and we are only one third of the way through the first quarter.

But it is clear he enjoys in the middle of the action. “I’m not good sitting on the bench,” he said. Auto insurance debate

Mr. Garamendi, so far, a great brand of consumer groups for its handling of the crisis of life insurance, and for his role in an tobenden debate in California on automobile insurance rates.

After Proposition 103, an initiative California voters in 1988, automobile insurance rates has been zurückgerollt to 20 per cent. But among predecessor, Mr. Garamendi, Roxani Gillespie, a representative of the former Republican governor George Deukmejian, the rate of decomposition lost in the bureaucracy has been decisive. Mr. Garamendi has promised to provide reductions in interest rates very soon, maybe even this year.

Despite widespread agreement that auto insurance is a crisis of the need for reforms in many countries, most of the restructuring efforts remain stalled or ineffective, forcing drivers increasingly pay price high and insurers to familiarize themselves with the escalating legal, medical and automotive repair costs.

The announcement last week by the Allstate Insurance Company, it is intended to manage a company in New Jersey, where it is the largest auto insurer, was the latest example of the confusion and ‘destruction of buildings around the theme in some populous U.S..

Allstate New Jersey said the official was improperly denied, it increases despite years of losses and rising costs. New Jersey, regulators and consumers for Allstate responded that operations were inefficient and that the company should lower their prices. A national problem

Here in California, the regulatory authorities to stay connected in a legal battle with industry on the question of whether the state can compel insurers to reduce rates, as a proposed ballot spent nearly three years. Most drivers in California, have long abandoned hope, the reductions promised at any time, quickly and for many, prices continue to rise.

Massachusetts, have both tried to deregulation and regulation very tight - only to note that neither the pleasure of consumers or industry system - is now obliged to regulatory review its third in 15 years.

While auto insurance, the most serious problems in New Jersey, California, Massachusetts, Texas, Pennsylvania, South Carolina and a handful of other countries, there are up to a certain degree of nearly of Germany.

Insurers have argued that, for years, the capture of rising costs over which they have no control - for medical care, auto-body repair, fraud and charges - and a match against the Rising prices for consumers and politicians, Sens a new theme emotionally.

Many insurers say that the money they lose, in some states - Allstate argued that they lost $ 72 million in automobile insurance in New Jersey during the last year - and that the company is an unprofitable in other countries. Orrin Kramer, an industry consultant in Princeton, New Jersey, said the auto insurer in Germany lost 1 cent for every $ 1 of premium, from 1986 to 1990.

“Average profitability is much lower rates of abolishing courts, so that a poor or bad business quite profitable,” said Kramer.

Further analysis, however, indicate that the industry remains profitable of all nations and greater self-insurance, State Farm, in each state, said their activity was still relatively healthy. CA (Pete) Ingham, State Farm Mutual Automobile Insurance Company’s General Counsel, said the company has no retirement plans of each State, when he fights tariff regulatory authorities in a number of countries, including New Jersey. Indeed, despite some threats, few companies have made major markets like California and New Jersey, because the exchange rate regulation.

Some companies, including Aetna Life and Casualty Company, auto insurance business in many countries. But their differences result for the bulk of its commitment to sell independent intermediaries. These sales systems are increasingly expensive and unprofitable face increasing competition by insurers with their own sales forces or competitors, officials and waives any directly with customers by telephone and mail.

“We are talking here about an industry with lower profits, lower profits and a multitude of problems,” said Sean F. Mooney, an economist at the Institute of Information of insurance, industry Research funded by the organization. “Costs are rising and prices do not increase enough to cost increases due to regulatory constraints, particularly in states like California and New Jersey.”

Some consumer groups and the growing number of politicians say, insurance companies must learn, the administration cut costs and live with less profit.