Auto Insurance
Sacramento, Calif., judge upholds new auto insurance regulations.
-In a rebuke to the insurance industry, a Sacramento Superior Court judge yesterday said insurers must stop using customers’ ZIP codes as their primary criteria for setting auto insurance rates.
The preliminary ruling by Judge Loren McMaster upholds new regulations ordered by Insurance Commissioner John Garamendi, although the insurance industry will be given a chance to present oral arguments against the rules in a court hearing this afternoon.
The Association of California Insurance Companies, American Insurance Association and Personal Insurance Federation of California had sued to block the regulations, complaining that the changes would arbitrarily push rates higher for some drivers in the state.
After reviewing the written filings in the case, McMaster rejected their pleadings and sided with Garamendi’s argument that the ZIP code-dominated formulas that insurers now use to set auto rates are arbitrary and are not related to…
Source : accessmylibrary.com
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