HomeMy WebLinkAboutCity Council - 4721 RESOLUTION NO. 4721
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH URGING THE DEPARTMENT OF IN-
SURANCE TO MAINTAIN AN EQUITABLE SYSTEM OF ALLO-
CATING COSTS OF AUTOMOBILE INSURANCE
WHEREAS, California law currently provides that automobile
insurers may use a system of territorial rating in allocating
costs between insureds in various geographic areas of the state;
and
The California legislature has refused repeated attempts
by legislators representing higher-rated territories to pro-
hibit the use of such a system which would result in a statewide
insurance rate; and
A statewide average insurance rate would not reduce the
overall cost of insurance to the public but would merely real-
locate existing and future costs between insureds in various
parts of the state; and
A statewide average rate would increase insurance premiums
for approximately two-thirds of California' s motorists while
reducing rates for the one-third motorists living in higher-
rated territories ; and
Elimination of territorial rating would be unfair to the
residents of Huntington Beach because they would be required to
subsidize motorists in areas which have higher loss costs; and
The Department of Insurance has scheduled hearings on
territorial rating to receive input from the public and their
elected representatives preparatory to reporting thereon to the
legislature pursuant to Assembly Concurrent Resolution 100 of
the 1977-1978 regular session; and
Information mhd.e available by automobile insurers indicates
that the elimination of territories and adoption of a statewide
/ahb .
2/16/79
average rate would increase rates for atypical insured resi-
dent of Huntington Beach by 17 percent.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Huntington Beach, on behalf of its residents , urges
the Department of Insurance to maintain an equitable system of
allocating loss costs on the basis of the geographical area to
which such costs are properly charged.
BE IT FURTHER RESOLVED that copies of this resolution be
forwarded to the Commissioner of Insurance for inclusion in
the hearing record and to appropriate legislators.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on- the 5th
day of March , 1979.
e
Mayor Pro Tempore
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
�D
INITIATE AND APPROVE
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/ c_ City Ad inistrator
2.
Res. No. 4721
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss;
CITY OF HUNITINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular meeting thereof held on the 5th day
of March 19 79 by the following vote:
AYES: Councilmen:
Thomas, MacAllister, Mandic, Bailey, Siebert
NOES: Councilmen:
None
ABSENT: Councilmen:
Pattinson
City Clerk and ex'-officio Clerk
of the City Council of the City
of Huntington Beach, California