Proposition 103: California
Definition of "Proposition 103: california"
Legislation mandating that factors taken into account in the calculation of premium rates for automobile insurance include the insured's driving record, annual miles driven, and years of driving experience. Excluded from consideration is territorial rating. Also included in the provision is a required discount of 20% for being a good driver. The proposition repeals previous laws which prohibited insurance brokers and agents from rebating premiums or commissions as an inducement to prospective insureds to purchase insurance from them. Also repealed by the proposition was the law that prohibited banks from becoming licensed to sell insurance. The proposition requires California to be a prior-approval state for any rate changes concerning automobile insurance, as well as to submit certain specified rate-change requests to a public hearing.
Popular Insurance Terms
Marine insurance contract clause that limits an insurance company's liability. The company agrees to pay only losses that exceed a percentage or flat dollar amount; partial (below this ...
Insurance company whose premium rates are usually below that of other insurance companies and the rating bureau. ...
Automatic nonproportional reinsurance treaty or automatic proportional reinsurance treaty that provides coverage for losses upon which claims are made while the treaty is in force, without ...
Limited number of payments, the first of which is due immediately, and payments thereafter are contingent upon the designated beneficiary (the annuitant) continuing to live. After the limit ...
Policy that combines life insurance coverage on two lives and pays policy proceeds on the second person's death with the accumulation potential of an underlying variable investment ...
Time that has elapsed between when claims actually occurred and when claims are actually paid. ...
Legislation designed to provide the structural reform necessary to strengthen the thrift industry after the bailout of the insolvent Federal Savings and Loan Insurance Corporation (FSLIC) ...
Coverage on an all risks basis for physical damage loss. Coverage applies to property damage to the insured boat or damage caused by the insured boat to a third party boat. Excluded perils ...
Business income coverage form that covers an insured business in the event that a manufacturer's operations are interrupted or suspended, thereby resulting in a monetary loss because a ...
Have a question or comment?
We're here to help.