HomeMy WebLinkAboutResolution No. 4837 RESOLUTION NO, 4o31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
SUPPORTING SPECIFIC AND NECESSARY CHANGES IN THE CALIFORNIA
CONSTITUTION WHICH CALIFORNIANS FOR FAIR INSURANCE BELIEVE
IS ESSENTIAL IN ORDER TO PROTECT CONSUMERS FROM UNFAIR
INSURANCE INDUSTRY PRACTICES.
WIIEREAS California consumers have suffered extraordinary increases in the cost of insurance in recent
year,,, and
WIIEREAS said increases are crippling the ability of public and private enterprise to provide affordable
goods and services, and
WIIEREAS many homeowners, particularly Senior Citizens, can no longer afford homeowner liability
coverage, thus unfairly exposing them to the possible loss of family shelter in the event of a lawsuit resulting in a
. forced sale, and
WHEREAS the passage of Proposition 51 failed to curtail the skyrocketing cost of insurance, and
WHEREAS the insurance industry has failed to adequately demonstrate that said increases are
reasonable, and
WHEREAS liabiity insurance is an essential and necessary commodity for the conduct of daily business
and home life, and
WHEREAS the availability of insurance coverage is limited by virtue of the industry-wide practice of
centralized risk management measurements and subsequent pricing competition (i.e., price by zip codes and other
methods irrespective of consumer risk histories), and
WHEREAS the California Legislature recognizes the essentiality of said insurance as exemplified by it's
passage of law requiring purchase of said insurance for the operation of motor vehicles on public streets, and
WIIEREAS the California Legislature, in the wake of it's mandate to purchase said insurance, did not
provide adequate statutory guidelines to necessarily protect consumers from pricing abuses by insurance
providers, and
WIIEREAS the people of the State of California are fully determined and cointnitted to protecting
themselves from uncontrolled pricing abuses by the providers of essential insurance coverage, and
WHEREAS said protection can only be achieved by the passage of certain amendments to the
Constitution of the State of California requiring that
(1) Insurance be classified as a public utility by virtue of it's inherent essentiality and extremely
limited competitive pricing;
(2) The position of State Insurance Commissioner be abolished as a political appointee and the
duties assigned to the State Controller, an elected official accountable to the taxpayers;
(3) A State Insurance Board popularly elected in each of five districts identical
to each of the five State Board of Equalization districts, with the power to
(a) Regulate insurance premium rates and cancellation practices;
(b) Set qualification standards for insureds and insurers;
(c) Regulate the types of assets in which insurance companies invest in order reduce or
eliminate highly risky investment speculations, the resulting losses of which trigger
increased premium costs;
(d) Regulate insurance industry accounting and financial eisclosure methods and
procedures so as to assure accurate public knowledge of profitability.
NOW 'IIIEREFORE, BE IT RESOLVED that the City Council of the City of
Downey, does hereby resolve to support stateside insurance reform
and the goals of Californians for Fair Insurance.
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APPROVED AND ADOPTED this 13th da of January, 1987.
J: es S. Sant e o
Mayor
ATTEST:, f
/
Interim City Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted at e
regular meeting of the City Council of the City of Downey, thereof, held
on the 13th day of January, 1987, by the following vote to wit:
AYES: b Council Members:boggs, Cormack, barb, Paul, Santangelo
NOES! U Council Members : NOne
ABSENT: U Council Members:Iyone
/mot ',J t
interim airy airk