Insurance Claims Practices. Civil Remedies. Referendum.
	Argument in Favor of Proposition 30

Arguments on this page are the opinions of the authors and have not been checked for accuracy by any official agency.

Governor Gray Davis and both Houses of the Legislature enacted the Fair Insurance Responsibility Act--restoring your right to sue a bad driver's insurance company if it illegally delays paying what they owe you and making your life miserable.

Here's one example of thousands of cases:

A reckless driver talking on a cell phone runs through a red light and smashes into a woman driving her child to school. The reckless driver's insurance company delays paying her medical bills for years. The innocent driver does not have the right to sue the reckless driver's insurance company--unless voters approve the Fair Insurance Responsibility Act.

To protect your newly restored right to hold insurance companies responsible, voters must approve the Fair Insurance Responsibility Act.

Seven out-of-state and foreign insurance companies oppose this law. The Los Angeles Times calls their campaign "a $50 million corporate effort . . . playing a complicated game with voters . . . hiding behind a consumer veil."

Proposition 30 prohibits drunk drivers from suing and does not give uninsured motorists the right to sue you. In fact, if you're injured by a drunk driver, Proposition 30 requires the drunk driver's insurance company to pay your claim on time.

The insurance companies' campaign ads falsely accuse Governor Gray Davis and the Legislature of giving drunk drivers the right to sue under this new law.

Governor Davis' office responded: "That's certainly not what the legislation does. Governor Davis signed measures that are good public policy and protect individuals from being treated unfairly."

And Proposition 30 does not change Proposition 213 which prohibits uninsured drivers from suing for pain and suffering.

Proposition 30 will reduce the number of lawsuits in California: If an insurance company agrees to resolve your claim through arbitration or simply decides to treat your valid claim fairly, there is no lawsuit.

Insurance companies are falsely accusing Governor Gray Davis of signing a law that allows insurance companies to raise your premiums.

Under California law, insurance companies penalized for violating this law cannot pass on those penalties to consumers by raising your premiums. The California Code of Regulations says: " Bad faith judgments and associated loss adjustment expenses" are "excluded expenses" for setting insurance company premiums.

The Sacramento Bee editorial summarized the issue: "On balance, SB 1237 (the Fair Insurance Responsibility Act) offers fair and needed protections to injured innocent victims and reasonable incentives for insurance companies to do the right and lawful thing."

You pay your premiums on time. The bad driver's insurance company should pay your valid claim on time.

Consumers Union (the publishers of Consumer Reports ), the Congress of California Seniors and the Consumer Federation support the Fair Insurance Responsibility Act enacted by both Houses of the Legislature and signed by Governor Davis. Give yourself a fighting chance. Protect your rights. Vote "Yes" on Proposition 30.

SENATOR MARTHA ESCUTIA

KAY McVAY, RN
President, California Nurses Association

LOIS WELLINGTON
President, Congress of California Seniors

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