Ballot initiative could have huge effect on California insurance

CalMatters

A proposed ballot initiative would drastically change the way property insurance is regulated in California by repealing a law voters passed almost four decades ago.

Proposition 103 has regulated home, auto and other types of property and casualty insurance in the state since 1988. It requires insurance companies to seek approval from an elected insurance commissioner to raise their premiums, and allows members of the public to object to rate increases.

The initiative — which experts are calling a long shot — would throw all of that out. Insurance companies would not need the state’s approval to raise their policy holders’ premiums; the commissioner would be appointed by the governor instead of elected; and the public would no longer be able to intervene in rate filings.

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