HomeMy WebLinkAbout3555_CCv0001.pdf RESOLUTION NO. 3555
A RESOLUTION OF THE CITY OF REDLANDS URGING THE COMMISSIONER OF INSURANCE
OF THE STATE OF CALIFORNIA TO MAINTAIN AN EQUITABLE SYSTEM OF TERRITORIAL
RATING USED BY AUTOMOBILE INSURERS
WHEREAS, the California Legislature has requested the Department
of Insurance to study the subject of territorial rating systems used
by automobile insurers; and
WHEREAS, territorial rating is a method of differentiating automo-
bile 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
increase premiums for two-thirds of California' s motorists; and
WHEREAS , the residents of the City of Redlands would be burdened
with increased premiums as a result of abolishing territorial rating;
by some insurance industry estimates, said increase to approximate
thirty-eight 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
Redlands hereby urges the Commissioner of Insurance to maintain, and re-
commend to the Legislature maintenance of, an equitable system of terri-
torial 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 of the City of Redlands
shall forward a copy of this resolution to the Commissioner of Insurance
for inclusion in the hearing record.
ADOPTED, SIGNED AND APPROVED this 6th day of February, 1979.
-J
ATTEST: mayor of _e Cit= of Re -ran-
CiW�erk
Data 23 . 1979
Chris C. Christiansen
City Manager
City of Redlands
Re: Territorial Rating
I would appreciate your taking the time
to review the enclosed, and presenting
the draft Resolution to the City council
for their consideration for adoption. If
you prefer that I present this item at a
regular Council meeting, I would be very
pleased to oblige, so just let me know.
The Resolution, if adopted, should be
addressed to:
Honorable Wesley J. Kinder
Insurance Commissioner
Department of insurance
100 Van Ness Avenue, 17th Floor
San Francisco, Ca. 94102
Thanks for giving this item your personal
attention.
JFC:riw JAMES F.('ELANO
enc. ( 2)