HomeMy WebLinkAboutResolution No. 3641 RESOLUTION NO. 3641
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
OPPOSING THE ABOLISHMENT OF TERRITORIAL AUTOMOTIVE
INSURANCE RATING
WHEREAS, the Department of Insurance has scheduled hearings to study the
use by automobile insurers of a system of territorial rating which permits
allocation of loss costs to areas where those persons causing such losses
reside; and
WHEREAS, the California Legislature has repeatedly refused to abolish
such a system and require one statewide rate; and
WHEREAS, imposition of a statewide rate would increase insurance premiums
for approximately two - thirds of California's motorists; and
WHEREAS., data shows that residents of Downey are involved in and make
claims to insurers for fewer and less costly injury and non - injury accidents
than residents of some other areas of the state, for example Central Los Angeles;
and
WHEREAS, because of this fact residents of Downey generally pay lower
average automobile insurance premiums than people living in higher risk
areas; and
WHEREAS, according to some insurance industry estimates the elimination
of territorial rating would result in a three percent increase in premium
costs to typical insured residents of Downey; and
WHEREAS, the residents of Downey do not believe they should subsidize
the insurance costs of residents of high risk areas.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY, DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the City. Council of Downey supports the use of an
equitable system of territorial rating and opposes any attempt to create one
statewide rate; and
SECTION 2. The City Clerk shall certify to the adoption of this Resolution
and forward copies to Insurance Commissioner Wesley J. Kinder for inclusion
in the hearing record and to Senator William Campbell and Assemblyman Bruce Young.
APPROVED AND ADOPTED this 13th day of February , 1979.
William L. Greene, Mayor
ATTEST:
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Robert L. Shand, - City Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
City Council of the City of Downey, at a regular meeting thereof held on the
13th day of February , 1979, by the following vote:
AYES: 3 Council Members: Jackman, Mackaig, Swearingen
NOES: 1 Council Members: Miller
ABSENT: 0 Council Members: None
ABSTAIN: 1 Council Member: Greene
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Robert L. Shand, City Clerk