HomeMy WebLinkAbout79-12 - Resolutions ,RESOLUTION NO. 79-12
A RESOLUTION OF THE CITY, COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, RECOMMENDING THE MAINTENANCE OF
AN EQUITABLE SYSTEM OF TERRITORIAL INSURANCE RATING.
WHEREAS, the Calfiornia Legislature has requested the Department
of Insurance study the subject of territorial rating systems used by
automobile insurers; and
WHEREAS, territorial rating is a method of differentiating
automobile insurance rates on the basis of claims loss costs, which
differ from area-to-area; and
WHEREAS, the California Legislature has acted in recent years
to defeat legislation which would abolish territorial rating and require
a single rate be used by automobile insurers throughout the state; and
I~HEREAS, a statewide average automobile insurance rate would
not reduce the overall cost of insurance to the public, but would merely
effect a reallocation of existing costs among various geographic areas;
WHEREAS, the residents of this city, the City of Rancho Cucamong~,
would be burdened with increased premiums as a result of abolishin~
territorial rating; and
WHEREAS, the Department of Insurance has invited participation
in the study by cities and counties on behalf of their affected residents:
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the
City of Rancho Cucamonga hereby urges the Commissioner of Insurance to
maintain, and recommend to the Legislature maintenance of, an equitable
system of territorial rating by which loss costs of automobile insurers
are allocated to those areas in which persons causing such losses reside;
and
BE IT FURTHER RESOLVED, that the City Clerk forward a copy of
this resolution to the Commissioner of Insurance for inclusion in the
hearing record, and to Assemblymen William ~{cVittie and Terry Gog~in,
and Senator Ruben Ayala.
PASSED, APPROVED, and ADOPTED this 21st day of February, 1979.
ATTEST: