HomeMy WebLinkAbout9501 - Automobile Insurance RatesRESOLUTION NO. 9501
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
. OF NEWPORT BEACH URGING THE CONTINUATION OF
THE PRESENT SYSTEM OF DIFFERENTIATING AUTO-
MOBILE. INSURANCE RATES BY GEOGRAPHIC TERRI-
TORY, AND OPPOSING LEGISLATION PENDING IN THE
STATE LEGISLATURE WHICH WOULD ABOLISH SUCH
PRACTICE TO THE DETRIMENT OF RESIDENTS OF THE
CITY OF NEWPORT BEACH AND ORANGE COUNTY
WHEREAS, the present territorial system of rating
automobile insurance differentiates automobile insurance
rates on the basis of claims loss costs incurred by the
insurers, and works to the benefit of those ares of the
state where lower claims costs are incurred, among which
areas are the City of Newport Beach and the County of Orange
as a whole; and
WHEREAS, there is legislation pending in the
California State Legislature which would abolish said
territorial rating within the state; and
WHEREAS, the Insurance Commissioner of the State of
California will hold hearings on the question whether such
ratings should be continued in the month of March,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH AS FOLLOWS:
1. That this Council.is of the opinion that insurance
rates should reflect the differences that exist in claims
experience of automobile insurers in different geographic
areas of the state, as the present territorial rating system
does;
' 2. That this Council urges the State Insurance
Commissioner and the State Legislature not to do anything to
abolish said present territorial rating system which, if done,
would be to the economic detriment of the residents of the
City of Newport Beach, all other Orange County cities, and the
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unincorporated territory of Orange County;
3. That this Council opposes any legislation
or other changes which would, abolish said territorial rating
system.
ADOPTED this 12th day of February
ATTEST:
City Clerk
,CERTIFIED �AS T ORIGINAL
Ai
CITY CLERK OF THE CITY OF NEWP T BEACH
.JAN 14 1978
®ATEz
, 1979.
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Mayor
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