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KLG:ar <br />1/11/79 <br /> <br />Pd~SOLUTION NO. 79-7 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY <br />OF SANTA ANA URGING THE CONTINUATION OF THE <br />PRESENT SYSTEM OF DIFFERENTIATING AUTOMOBILE <br />INSURANCE RATES BY GEOGRAPHIC TERRITORY, AND <br />OPPOSING LEGISLATION PENDING IN THE STATE <br />LEGISLATURE WHICH WOULD ABOLISH SUCH PRACTICE <br />TO THE DETRIMENT OF RESIDENTS OF THE CITY OF <br />SANTA ANA AND ORANGE COUNTY. <br /> <br /> WHEREAS, the present territorial system of rating <br />automobile insurance differentiates automobile insurance <br />rates on the basis of claims loss costs incurred by the <br />insurers, andwQ~ks to the benefit of those areas of the <br />state where lower claims costs are incurred, among which <br />areas are the City of Santa Ana and Orange County as a <br />whole; and <br /> <br /> WHEREAS, said territorial rating system is under <br />attack in litigation commenced by the City of Los Angeles <br />and the County of Los Angeles; and <br /> <br /> WHEREAS, there is legislation pending in the <br />California State Legislature which would abolish territorial <br />rating within the state; and <br /> <br /> WHEREAS, the Insurance Commissioner of the State <br />of California will hold hearings on the question whether <br />such ratings should be continued in the month of March; <br /> <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL <br />OF THE CITY OF SANTA ANA, AS FOLLOWS: <br /> <br /> 1. That this Council is of the opinion that insur- <br />ance rates should reflect the differences that exist in <br />claims experience of automobile insurers in different geo- <br />graphic areas of the state, as the present territorial rat- <br />ing system does. <br /> <br /> 2. That this Council urges the State Insurance <br />Commissioner and the State Legislature not to do anything <br />to abolish said present territorial rating system, which, <br />if done, would be to the economic detriment of the residents <br />of Santa Ana, all other Orange County cities, and the unin- <br />corporated territory of Orange County. <br /> <br /> 3. That this Council opposes any legislation <br />or other changes which would abolish said territorial rat- <br />ing system, and directs that its position on said question <br />be communicated by the Mayor to the Insurance Commissioner, <br /> <br /> <br />