HomeMy WebLinkAbout1979-02-06; City Council; Resolution 5661,
# I
a
1
I .
f
r I
t
<
1(
11
1;
11
14
1:
1E
17
1E
1s
2c
21
22
23
24
25
26
27
28
RESOLUTION NO. 5661
A RESOLUTION OF THE CITY OF CARLSBAD URGING INSURANCE COI/IISSIONER TO MAINTAIN AND RECOMMEND TO THE LEGIS- ~_--_
LATURE MAINTENANCE OF, AN EQUITABLE
SYSTEM OF TERRITORIAL RATING.
WHEREAS, the California Legislature has requestel, the Depart-
nent of Insurance study the subject of territorial rating systems
ised by automobile insurers; and
WHEREAS, territorial rating is a method of differentiating
iutomobile insurance rates on the basis of claims loss costs, which
liffer from area-to-area; and
WHEREAS, the California Legislature has acted in recent years
:o defeat legislation which would abolish territorial rating and
:equire a single rate be used by automobile insurers throughout
:he state; and
WHEREAS, a statewide average automobile insurance rate would
lot reduce the overall cost of insurance to the public, but would
ierely effect a reallocation of existing costs among various
ieographic areas; and
WHEREAS, throughout California, imposition of an average rate
rould increase premiums for two-thirds of California's motorists;
nd
WHEREAS, the residents of the City of Carlsbad would be
urdened with increased premiums as a result of abolishing terri-
orial rating; by some insurance industry estimates, said increase
o approximate 51% percent for a typical insured motorist in this
rea; and
/// ////
1
2
3
4
5
6
7
8
9
10
3.1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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 of Carlsbad
nereby urges the Commissioner of Insurance to maintain, and
recommend to the Legislature maintenance of, an equitable system
2f territorial rating by which loss costs of automobile insurers
3re allocated to those areas in which persons causing such losses
reside; and
BE IT FURTHER RESOLVED, that the City Clerk forward a copy of
this resolution to the Commissioner of Insurance for inclusion in
the hearing record and to Assemblyman Robert Frazee and Senator
Nilliam Craven.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Zouncil on the 6th day of February , 1979 by the
following vote, to wit:
AYES : Councilmen Packard, Skotnicki, Anear, Lewis and
NOES : None Counci lwoman Cas1 er
ABSENT: None
_pdAad
RONALD C. PACKAXD, Mayor
ATTEST :