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HomeMy WebLinkAboutAgenda Statement 1979/02/27 Item 11CITY OF CHULA VISTA COU~VC I L AGEiVDA STATEMEiVT I~ Item No. 11 For meeting of 2/27/79 ITEM TITLE Resolution 9~~L - .Opposing the Abolition of the Territorial Rating System for Automobile Insurance Premiums C /~ SUBMITTED BY City Manager ~- ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES. NOX ) Pursuant to Assembly Concurrent Resolution 100 (Stats. 1978), the Department of Insurance of the State has scheduled hearings to receive input from the public on the present system of territorial ratings for the purpose of determining automobile insurance costs. The Assembly resolution requires the State Department of Insurance to prepare a re- port for the legislature concerning the advisability of abolishing the historica l territorial rating system. Under the territorial rating system which has been in use for several years in California and subject to several previously unsuccessful attempts to abolish it, the ratings are based upon the cost of claims within specific geographical areas. Any proposal to abolish this existing system would have an adverse effect upon the insurance premiums San Diego County drivers would have to pay for their automobile insurance. The big thrust of the movement to revise the system comes from the San Francisco and Los Angeles areas where insurance premiums are higher than those in San Diego County. According to one insurance company in San Diego County, if the territorial rating method is abolished, San Diego County motorists could expect increases in automobile insurance rates from between 51%and 63% per year. Abolishing territorial ratings will do little to control factors which contribute to the high cost of insurance, but it would represent a subsidy by two-thirds of California drivers to the one-third who live in the higher rated territories. It would not appear San Diego, with its good rating, has an obligation to subsidize Los Angeles and San Francisco with their poor ratings. EXHIBITS Agreement Resolution X Ordinance Plat Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT None STAFF RECOMMENDATION Adopt resolution BOARD/COMMISSION RECOMMENDATION ,A P P R O V E D by the COUNCIL ACTION Ci 4~; Cv;.~,~oil Q1 1~ v'-, t.. jV ir"i t~<r„ ~ VU, j.~y ornia a_a..~_ March 1, , 137f3 i~r. r. A. #slack, Jr, ;district Manager Autoara~iile Club of Southern California 5~0 "~%" Street, hox 12~i7 C~iulr- Vista, California ~~fl12 Dear 3~r . Llack The City Council unaui~usly actoptetf the enclosed res©lutivn, together ~rit~i an agenda statement, ogposing tt~e abolition of the territorial rating spstent far automobile insurance prez~iums in the Mate at California, at its regular meeting, of February Thank qou for the inf®rmation you supplied the City in this matter. Let's hose that tbesa efforts have the de®ised result with the Cods®ioner of Insurance and the State Legislature. Stery truly yours, dill T. ~iycie Mayor 15'I'~i : gw ~ncls. ~.~~ No . 9.5i~ i?ii3 bcc: City Manager ~y~ ~"`-k 5~6