HomeMy WebLinkAboutResolution No. 6757RESOLUTION NO. 6757
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A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF AZUSA REQUESTING THE DE-
PARTMENT OF INSURANCE TO STUDY TERRIT-
ORIAL RATING SYSTEMS USED BY AUTOMOBILE
INSURERS.
WHEREAS, the California Legislature has requested the
Department of Insurance study the subiect of
territorial rating systems used by automobile
insurers: and
WHEREAS, territorial rating is a method of differentiating
automobile insurance rates on the basis of claims
loss costs, which differ from area -to -area; and
WHEREAS, the California Legislature has acted in recent
years to defeat legislation which would abolish
territorial rating and require a single rate be
used by automobile insurers throughout the state;
and
WHEREAS, a statewide average automobile insurance rate would
not reduce the overall cost of insurance to the
public, but would merely effect a reallocation
of existing costs among various geographic areas;
and
WHEREAS, throughout California, imposition of an average
rate would increasepremiums for two-thirds of
California's motorists; and
WHEREAS, the residents of the City of Azusa would be burdened
with increased premiums as a result of abolishing
territorial rating'; by some insurance industry
estimates, said increase to approximate 16 percent
for a typical insured motorist in this area; and
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 Council of the
City of Azusa hereby urges the Commissioner of Insurance to
maintain, and recommend to the Legislature maintenance of,
an equitable system of territorial rating by which loss
costs of automobile insurers are 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 Bill Lancaster and
Senator H. L. Richardson.
Adopted and approved this 20th day of February, 1979.
Mayor
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I hereby certify that the foregoing resolution
was duly adopted by the City Council of the City of Azusa
at a regular meeting thereof held on the 20th day of
February, 1979, by the following vote of Council:
AYES: Councilmen: Decker, Fry, Cruz, Moses, Solem
NOES: Councilmen: None
ABSENT: Councilmen: None
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City Clerk