Automobile Insurance. Good Driver Premiums.

AUTOMOBILE INSURANCE. GOOD DRIVER PREMIUMS. INITIATIVE STATUTE. Requires motor vehicle insurers to base insurance premiums primarily upon driving record of applicant. Requires insurance be sold to, and 25% reduction in premiums for, drivers with good driving records as specified. Requires proof of financial responsibility upon vehicle registration. Creates consumer information system and provides for insurance company funding for increased investigation and prosecution of fraudulent insurance claims. Suspends driving privilege of persons under 21 involved in, among other offenses, alcohol or controlled substance related driving offenses. Requires insurers to exercise good faith and fair dealing in claims settlements. Contains other provisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The effect of this measure on General Fund revenues from gross insurance premium taxes currently paid by insurance companies is unknown, since information is unavailable on the amount of insurance premiums paid by good drivers. Adoption of this measure would increase the administrative costs for the Department of Insurance approximately $2 million annually, payable from the Insurance Fund, and the Department of Motor Vehicles approximately $6 to $8 million annually, payable from the State Transportation Fund. It may also result in other unknown annual court costs