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| SPONSOR: | Martinez | DATE TYPED: | 03/15/01 | HB | 118/aSCORC | ||
| SHORT TITLE: | No Additional Fee For First-Time Insured | SB | |||||
| ANALYST: | Wilson | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| NFI | NFI | ||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
Public Regulation Commission
SUMMARY
Synopsis of SCORC Amendment
The amendment clarifies the bill by adding that a purchaser of automobile insurance cannot be charged higher rates "solely" because he is a first-time purchaser. He may be charged higher rates based on other factors.
Synopsis of Bill
HB 118 prohibits an insurer from charging an additional fee for automobile insurance to a first-time purchaser or a purchaser reinstating coverage.
Significant Issues
HB 118 might conflict with safe driver and renewal credit discounts. For example, a safe driver who has been with a company for several years might get a special discount on his automobile insurance. This discount would not be available to a first-time purchaser.
The Public Regulation Commission indicates that there might be a possible reduction in insurance availability and growth in the assigned risk pool.
ADMINISTRATIVE IMPLICATIONS
HB 118 may require some automobile insurers to refile their rates for approval by the Division of Insurance.
DW/prr:ar