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 Also repealed by the proposition was the law that prohibited banks from becoming licensed to sell insurance.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
Government agency, under the McCarran-Ferguson act (public law 15), that has no authority over insurance matters to the extent the states regulate insurance to the satisfaction of Congress. ...
Factor applied in retrospective rating in order to increase the basic premium to cover state premium taxes for liability and workers compensation insurance. For example, if a state premium ...
Type of term life insurance policy that has a face amount that increases to a predetermined sum and then decreases to zero at the termination point of the policy, while at the same time ...
Life insurance rate determined by the valuation of company policy reserves. State regulators set strict standards for policy reserves to make certain that life insurers will have enough ...
New pension-accounting rule (Employers Accounting for Post retirement Benefits Other Than Pensions) which mandates that employers that provide post retirement benefits to include life ...
Excess coverage over the first layer of medical insurance to provide for catastrophic medical payments. The first layer may be either group or individual medical insurance, or an individual ...
Market in which buyers dominate trading and force financial asset prices up. ...
Rights of employees who leave an employer with a qualified plan to withdraw their accumulated benefits. With a contributory plan, employees have immediate rights to their own contributions, ...
Single payment or periodic payments that are made to purchase an annuity. ...
Have a question or comment?
We're here to help.