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RESOLUTION NO. 9501 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY <br />. OF NEWPORT BEACH URGING THE CONTINUATION OF <br />THE PRESENT SYSTEM OF DIFFERENTIATING AUTO- <br />MOBILE. INSURANCE RATES BY GEOGRAPHIC TERRI- <br />TORY, AND OPPOSING LEGISLATION PENDING IN THE <br />STATE LEGISLATURE WHICH WOULD ABOLISH SUCH <br />PRACTICE TO THE DETRIMENT OF RESIDENTS OF THE <br />CITY OF NEWPORT BEACH AND ORANGE COUNTY <br />WHEREAS, the present territorial system of rating <br />automobile insurance differentiates automobile insurance <br />rates on the basis of claims loss costs incurred by the <br />insurers, and works to the benefit of those ares of the <br />state where lower claims costs are incurred, among which <br />areas are the City of Newport Beach and the County of Orange <br />as a whole; and <br />WHEREAS, there is legislation pending in the <br />California State Legislature which would abolish said <br />territorial rating within the state; and <br />WHEREAS, the Insurance Commissioner of the State of <br />California will hold hearings on the question whether such <br />ratings should be continued in the month of March, <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL <br />OF THE CITY OF NEWPORT BEACH AS FOLLOWS: <br />1. That this Council.is of the opinion that insurance <br />rates should reflect the differences that exist in claims <br />experience of automobile insurers in different geographic <br />areas of the state, as the present territorial rating system <br />does; <br />' 2. That this Council urges the State Insurance <br />Commissioner and the State Legislature not to do anything to <br />abolish said present territorial rating system which, if done, <br />would be to the economic detriment of the residents of the <br />City of Newport Beach, all other Orange County cities, and the <br />