HomeMy WebLinkAboutRES NO 1-79RESOLUTION NO. 1-79
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD URGING THE STATE COMMISSIONER OF
INSURANCE TO MAINTAIN AND RECOMMEND TO THE
STATE LEGISLATURE MAINTENANCE OF TERRITORIAL
RATING FOR AUTOMOBILE INSURERS.
WHEREAS, the California Legislature has requested the
Department of Insurance study the subject 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 increase premiums for two-thirds of California's motorists;
and
WHEREAS,.the residents of the City of Bakersfield would be
burdened with increased premiums as a result of abolishing terri-
torial rating; by some insurance industry estimates, said increase
to approximate 25 per cent for a typical insured motorist in this
area; and
WHEREAS, The Department of Insurance has invited partici-
pation 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 Bakersfield hereby urges the Commissioner of Insurance
to maintain, and recommend to the Legislature maintenance of, an
equitable system of territorial rating by which costs of automo-
bile 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 inclu-
sion in the hearing record, and to Assemblyman Donald A. Rogers and
Senator Walter W. Stiern.
o0o
I HEREBY CERTIFY that the foregoing ResolUtion was passed
and adopted by the Council of the City of Bakersfield at a regular
meeting thereof held on the 10th day of January, 1979, by the ~
following vote:
AYES, COUNCILMEN ~ CHRISTENSEN, MEDDERS, PATTY,
NOES: COUNCILMEN: /1/
ABSENT: COUNCILMEN. L_.
,'\,~STAINING COUNCIL/A[N: AJ (9N ,_~ ..,
,SCEALES,~RO~G
CITY Clerk of the
Council of the City of Bakersfield
'-YO .... akersfield,~.,._~.~ ~ .,~ _
APPROVED as to form:
/F~,~,~r~ ~,J ~~B
CITY ATTORNEY of akersfield