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1/11/79
Pd~SOLUTION NO. 79-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA URGING THE CONTINUATION OF THE
PRESENT SYSTEM OF DIFFERENTIATING AUTOMOBILE
INSURANCE RATES BY GEOGRAPHIC TERRITORY, AND
OPPOSING LEGISLATION PENDING IN THE STATE
LEGISLATURE WHICH WOULD ABOLISH SUCH PRACTICE
TO THE DETRIMENT OF RESIDENTS OF THE CITY OF
SANTA ANA AND ORANGE COUNTY.
WHEREAS, the present territorial system of rating
automobile insurance differentiates automobile insurance
rates on the basis of claims loss costs incurred by the
insurers, andwQ~ks to the benefit of those areas of the
state where lower claims costs are incurred, among which
areas are the City of Santa Ana and Orange County as a
whole; and
WHEREAS, said territorial rating system is under
attack in litigation commenced by the City of Los Angeles
and the County of Los Angeles; and
WHEREAS, there is legislation pending in the
California State Legislature which would abolish territorial
rating within the state; and
WHEREAS, the Insurance Commissioner of the State
of California will hold hearings on the question whether
such ratings should be continued in the month of March;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SANTA ANA, AS FOLLOWS:
1. That this Council is of the opinion that insur-
ance rates should reflect the differences that exist in
claims experience of automobile insurers in different geo-
graphic areas of the state, as the present territorial rat-
ing system does.
2. That this Council urges the State Insurance
Commissioner and the State Legislature not to do anything
to abolish said present territorial rating system, which,
if done, would be to the economic detriment of the residents
of Santa Ana, all other Orange County cities, and the unin-
corporated territory of Orange County.
3. That this Council opposes any legislation
or other changes which would abolish said territorial rat-
ing system, and directs that its position on said question
be communicated by the Mayor to the Insurance Commissioner,
RESOLUTION NO. 79-7
PAGE TWO
and to all state senators and assemblymen representing Santa
Ana and all other portions of Orange County.
ADOPTED this 15th day of
1979, by the following vote:
AYES: COUNCILMEN: Brandt,
NOES:
ABSENT:
January
Evans
Ward, Yamamot o
COUNCILMEN: Bricken
cL~.~ oF TH~. COU~ ~
APPROVED AS TO FORM:
KEITH L. GOW
CITY ATTORNEY
Garthe, Ortiz,