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California Prop 103 (Intervenor Process)

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California Prop 103 (Intervenor Process)

California Prop 103 (Intervenor Process)

Prop 103 requires “prior approval” from Department of Insurance auto, home, and casualty insurance rates.

On November of 1988, California voters passed California Proposition 103 (Prop 103). This Prop states that insurance companies must acquire approval from California’s Department of Insurance before they can implement any insurance rates on auto, home, and casualty insurance policies. The policy also required each insurer to “roll back” its rates by 20 percent. Before this law, the rates were established by the insurance companies without approval by the Insurance Commissioner. It’s a law that was made to protect the residents of California from the ridiculously high prices that insurance companies wanted to charge.

Types of Insurance Regulated by Prop 103

The following lines of insurance are regulated by Proposition 103: Personal automobile, dwelling fire, earthquake, homeowners, inland marine, and umbrella; Commercial aircraft, boiler and machinery, automobile, medical malpractice, burglary and theft, business owners, earthquake, farm owners, some fidelity, fire, glass, inland marine, professional liability, miscellaneous, multi-peril, other liability, special multi-peril, umbrella, and coverage under the United States Longshoremen’s & Harbor Workers’ Compensation Act.

About the Intervention Process

Consumers provide a substantial contribution to this law by giving valuable technical input that may recover their costs and expenses as well as reasonable attorney fees. The success of the Proposition is due to consumer participation. Consumers made a substantial contribution to the decision-making process by bringing to light the issues of insurance companies that may not have otherwise been considered. This Prop has saved Californian drivers more than $100 billion in the past 28 years since its passing–more than $4.3 billion per year! The report found that the average consumer has spent 0.3 percent less on auto insurance in 2010 than it did in 1989, while the nation average spent 43.3 percent more! 

Contact the independent insurance professionals at Little & Sons Insurance Services for all of your car insurance needs in Banning, Beaumont, Calimesa, and surrounding California areas. We will work with you to find the coverage you deserve, all at the right price to fit your budget.


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