HomeMy WebLinkAbout1979-069
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RESOLUTI ON NO. ;l1'-tt: l'
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I A RESOLUTION OF THE CITY OF SAN BERNARDINO URGING THE STATE LEGISLATURE
TO MAINTAIN A TERRITORIAL RATING SYSTEM FOR AUTOMOBILE INSURANCE WHEREBY
INSURANCE RATES ARE PROPORTIONATE TO THE NUMBER OF VEHICULAR ACCIDENTS
OCCURRING WITHIN THE RESPECTIVE GEOGRAPHICAL AREAS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
AS FOLLO~JS:
WHEREAS, the California Legislature has requested the Department of
Insurance study the subject of territorial rating systems used by automobile
insurers; and
WHEREAS, territorial rating is a method of differentiating automobile
insurance rates on the basis of claims loss costs, which differ from area
to-area; and
WHEREAS, the California Legislature has acted in recent years to defeat
legislation which would abolish territorial rating and require a single
rate be used by automobile insurers throughout the state; and
WHEREAS, a statewide average automobile insurance rate would not reduce
the overall cost of insurance to the public, but would merely effect a
reallocation of existing costs among various geographic areas; and
WHEREAS, throughout California, imposition of an average rate would
increase premiums for two-thirds of California's motorists; and
WHEREAS, the residents of this city would be burdened with increased
premiums as a result of abolishing territorial rating; by some insurance
industry estimates, said increase to approximate 35 percent for a typical
insured motorist in this area; and
WHEREAS, the Department of Insurance has invited participation in the
study by cities and counties on behalf of their affected residents;
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Bernardino hereby urges the Commissioner of Insurance to maintain, and
recommend to the Legislature maintenance of, an equitable system of
1 territorial rating by which loss costs of automobile insurers are allocated
2 to those areas in which persons causing such losses reside; and
3 BE IT FURTHER RESOLVED, that the City Clerk forward a copy of this
4 resolution to the Commissioner of Insurance for inclusion in the hearing
5 record and to Assemblyman Terry Goggin and Senators Ruben Ayala and
6 Robert Pres 1 ey.
7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
8 Mayor and Common Council of the City of San Bernardino at a '~~~A~
9 meeting thereof, held on the I?Ji day Of~ ' 1979, by the
10 following vote, to-wit:
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AYES: Councilmen Z:;..Ji;'~j,~~! "',:
. ~h~ ~.J_M.)~ .
NAYS: d~-,....~u) Jt)~~I!.J
ABSENT: ;;;tV.b.~, ~,o
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L,.../bd/ ~
~~'~ City Clerk
The foregoing resolution is hereby approved this ~I'~ day of
,1979.
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San Bernardino
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Approved as to form:
FILED
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CITY CLERKS OFFiCE
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