Attorney General No.

SA87RF0050

Secretary of State No.

443

Description

MOTOR VEHICLE ACCIDENT CLAIM REIMBURSEMENT FUND. INSURANCE REGULATION INITIATIVE STATUTE. Creates fund to pay certain motor vehicle accident claims on a no fault basis for claims after January 1, 1990. Funding is from premium fee collected annually from vehicle registrants and fees assessed against traffic violators. Creates Bureau to set premium fee and administer program providing maximum reimbursement of $15,000 per person and $30,000 per accident for bodily injury and $5,000 for property damage. Tort liability remains for claims outside program. Provides for property-casualty insurance rate regulation and public participation therein. Subjects insurers to antitrust and unfair practice laws. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Adoption of this measure would result in an initial $200 million appropriation from the General Fund for the establishment of the California Bureau of Automobile Accident Reimbursement. This measure also requires repayment of the appropriation with interest, no later than December 31, 1993. The revenue impact of this measure is unknown since the required tax rate adjustment applies to all insurance premiums. Calculations of the rate adjustment involve numerous variables which will likely result in an unknown loss or gain in state General Fund revenues during the initial years. Adoption of this measure will also increase the annual administrative costs of the Department of Insurance by approximately $6 million and the Department of Motor Vehicles by approximately $100,000. This measure would also result in an unknown net effect on state and local court costs.

Proponents

James Wheaton, 319 Lenox Avenue, Oakland, California 94610 (415) 431-7430

Date

2-9-1988

Document Type

Initiative

Qualified

Failed to Qualify

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