HomeMy WebLinkAboutReso 1979-9516RESOLUTION N0. 9516
RESOLUTION OF THE CITY COUrdCIL OF THE CITY OF CHULA
VISTA OPPOSING THE ABOLITION OF THE TERRITORIAL
RATING SYSTEM FOR AUTOMOBILE INSURANCE PREMIUMS
The City Council of the City of Chula Vista does hereby
olve as follows:
WHEREAS, California law currently provides that auto-
m bile insurers may use a system of territorial rating in allo-
c ting costs between insureds in various geographic areas of
t e State, and
WHEREAS, the California Legislature has refused repeated
a tempts by legislators representing higher-rated territories to
p ohibit the use of such a system, which would result in a state-
w'de insurance rate, and
WHEREAS, a statewide average insurance rate would not
r duce the overall cost of insurance to the public, but would
m rely reallocate existing and future costs between insureds in
v rious parts of the State, and
WHEREAS, a statewide average rate would increase insurance
p emiums for approximately two-thirds of California's motorists,
w ile reducing rates for the one-third of motorists living in
h gher-rated territories, and
WHEREAS, elimination of territorial rating would be
u fair to the residents of the City of Chula Vista because they
w uld be burdened with increased premiums to subsidize motorists
i areas which have highler loss costs, and
WHEREAS, the Department of Insurance has scheduled
h arings on territorial ratings to receive input from the public
a d their elected representatives preparatory to reporting
t ereon to the Legislature pursuant to Assembly Concurrent Reso-
1 tion 100 of tree 1977-78 Regular Session.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
t e City of Chula Vista, on behalf of its citizens, urges the
D partment of Insurance to maintain an equitable system of allo-
c ting loss costs on the basis of the geographical area to which
s ch costs are properly charged.
BE IT FURTHER RESOLVED that copies of this resolution
b provided to the Commissioner of Insurance for inclusion in
t e hearing record.
BE IT FURTHER RESOLVED that copies of this resolution
b provided to members of the San Diego County delegation to the
C lifornia Legislature.
P esented by Approved as to form by
L ne Cole, City Manager George D. indberg, City Attorne
CHULA l
197 9
AYES:
NAYES~
ABSTAI
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CALIFORNIA, this ~ ~t-~, day of February
by the following vote, to-wit:
Councilmen Cox, Ectdahl, Hyde, Dillow, Scott
Councilmen None
Councilmen None
Councilmen None
~,. A /1
Mayor~of~t~he City
STATE
CITY OF
DO
DATED
City
CALIFORNIA )
OF SAN DIEGO ) s s .
;HULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
BY CERTIFY that the above and foregoing is a full, true and correct copy of
(seal)
,and that the same has not been amended or repealed.
City Clerk
SI{~
C-660