Taking a Look at Proposition 103 in California

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The 1988 November ballot in California had four insurance-related propositions that sought to reduce the rates of insurance policies for automobiles, properties, and casualties. Proposition 103 was the only one of the four to be approved, and it would win by a small margin. The proposition sought to drastically change the present state of the insurance system, causing the rates to be significantly reduced based upon a fair system. The system was to provide an insurance premium based upon factors that mattered most: the driver’s history, years of experience in driving, and the number of miles being driven annually. The proposition would be created by Harvey Rosenfield, an accomplished lawyer and consumer advocate. Harvey would receive the support from Ralph Nader who would help to push towards the approval of this proposition. The proposition was a huge success, creating drastic changes in the insurance industry. As a result, the state of California now has a four-year elected Insurance Commissioner, as well as a reduced rate for all policies. Good drivers receive additional benefits, and insurance companies are prevented from being able to increase their pricing by other factors that would be linked to discrimination and price-fixing. California Proposition 103 appeared on the ballot of November 8, 1988. The proposition sought to bring about some reforms to the insurance policies in the state of California. “The key reforms in Proposition 103 were to say that three primary

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