Automobile And Other Insurance.

AUTOMOBILE AND OTHER INSURANCE. INITIATIVE STATUTE. Establishes no-fault insurance for automobile accident injuries, covering medical expenses, lost wages, funeral expenses. Accident victim may recover from responsible party only for injuries beyond no-fault limits. Prohibits recovery for noneconomic injuries except cases of serious and permanent injuries and specified crimes. Reduces rates for certain coverages 20 percent for two years. Cancels Propositions 100, 101, 103. Restricts future insurance regulation legislation. Requires arbitration of disputes over insurers\u27 claims practices, limits damage awards against insurers. Prohibits agents and brokers from discounting. Increases Insurance Commissioner\u27s power to prosecute fraudulent claims. Limits plaintiffs\u27 attorney contingency fees in motor vehicle accident cases. Summary of Legislative Analyst\u27s estimate of net state and local government fiscal impact: Would increase state administrative costs by about $2.5 million in 1988-89, varying thereafter with workload. to be paid by additional fees on the insurance industry. State and some local governments would have unknown savings from lower insurance rates and liability limitations. Possible but unknown effect on recovery of workers\u27 compensation. Possible reduction in court costs and court revenues could result from limitations on claims for noneconomic damages. Would reduce state revenue from the gross premiums tax by about $25 million a year for two years if no other changes are made in insurance rates