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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