HomeMy WebLinkAboutCC RES 79-174
8
10
!!
!3
i9
RESOLUTION NO. 79-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, URGING THE COMMISSIONER OF
INSURANCE TO MAINTAIN, AND RECOMMEND TO THE
LEGISLATURE MANTENANCE OF, AN EQUITABLE SYSTEM
OF TERRITORIAL RATING BY WHICH LOSS COSTS OF
AUTOMOBILE INSURERS ARE ALLOCATED TO THOSE AREAS
IN WHICH PERSONS CAUSING SUCH LOSSES RESIDE.
I:,'tlEREAS, the California Legislature has requested the Departraent Of
Insurance stud>' the subject of territorial rating syste::'...s used by auton,.obile
i.."!iEi':,.7:.z'~ a. s*atewide avera:>~ ....
..... , ~ ~,~ auto~ncg, ile inst~rance rate would not
re-duce the e' .... '~='' cost of insurance to the public, but would ~aerely effect a
-'er-tl !ocat ;.~ on of ...~-x~ stin~_ o cost~ ,,',c:,-'~g~.. vari. o,,~., geo~,rap!~'i.c areas ;~, . and
insurers; and
WtlEREAS territorial rating is a metl~od of differentiating automobile
insurance rates on the basis of clai[as loss costs, which d:iffer from area-to-
area; and
WI-iEREAS, the California Legislature has acted in recent years to
defeat !egis'ation whict~ would abolish territorial rating and require a single
rate be used by automobile insurers tl~rougl~out ti~e state; and
'"":' .... ~: rough .I; ia, '; ' '
:~.~.-v. ::".~5, r,h ouc Ca :lorn ,.topos trion of an average rate woultt
±.n..are.Tse ~.r '.ur.~s for two-thirds OE Califor~ia's motorists; and
i:.~sura:~.ce indus.:ry estimates, said increas.e to approximate 20% for a typical
insrre:'.~ :.ne.z.?..r-'.st in this area;
the residents of tire Ci~.y o'f Tustin would be burdened witi~
· ~rem: ur, s: as a resu~-~ of abolishlng~ territorial rating', by some
i,7.{EiE.-iS,, tl',e Departmei~t of Insurance l~as invited participation in the
stu. dv bv c±''es and counties on bel~alf of tl,,etr affected res.idents;
· ' '-' RE ."° ,
."~G!~ ~.;.~. FOP, E, BE IT Rm.)OI,VED that the City Council of the City o£
'~ Tustin h=.~=:~.' urges the Co~anissioner of Insurance to maintain and recommend
~0 ~ .... ' '
{{ to the Legislature maintenance of, an oquitat;le system of territorial rating
by which loss costs of automobile inst~rers are allocated to tt~ose areas in
~4
~5
26
which persons causing such losses reside; and
BE IT FURTt.iER RESOLVED, that the City Clerk forward a copy of this
resolut.ion to the Co~anissioner of Insurance for inclusion in the hearing
record and to Assemblyman Nestande and Senator Briggs.
PASSE[) AND ADOPTED at a regular meeting of the City Council of the
City of Tustin, California held on the 20th day of February, 19'79.
ATTEST-
dpj; 2/6/79'
~8
29
30
STATE OF CALIFOP~NIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
RUTH C. POE, City Clerk and ex-officio Clerk of the City Council of the
City of Tustin, California, does hereby certify that the whole number of
the members of the City Council of the City of Tustin is five; that the
above and foregoing Resolution No. 79-17 was duly and regularly
introduced, passed and adopted at a regular meeting of the City Council
held on the 20th day of February , 1979, by the following
vote:
AYES:
NOES
~-~S ENT:
COU?~.CiI2,~N- WELSH, SCHUSTER, KENNEDY
CO.Ui,.;C I L.~,/E N - NONE
COU'.;CiL.~,'~N- S '~ ~ ~ '~ ,.our _ SHARP
.~.:.,, ~ .~ :.~, ,L l ,
RUTH C. POE, City Cle~'.~City of Tustin, Calif~.--nia