State Administered Automobile Insurance. Automobile Claims Court.

STATE ADMINISTERED AUTOMOBILE INSURANCE. AUTOMOBILE CLAIMS COURT. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Replaces private automobile insurance system with state administered program of required, basic automobile insurance if Insurance Commissioner determines that average private premiums equal or exceed Proposition 103\u27s rollback level or that average percentage of vehicles without required insurance exceeds 15 percent. Specifies operation of program. Regulates attorney fees in vehicle accident cases. Creates automobile claims court to resolve claims up to $15,000 under state issued insurance. Requires informal proceedings without attorneys or jury. Establishes consumer board. Provides penalties for violations. Permits statutory amendments by 2/3 vote of Legislature. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: If California Non-profit Insurance Fund is established, would incur one-time multimillion dollar General Fund loan (repayable within three years) to finance start-up costs, possible one-time multimillion dollar state administrative costs to change DMV registration cycles to coincide with insurance renewal dates, and ongoing multimillion dollar annual state costs for Auto Claims Court, offset by unknown savings in state and local court costs. Would cause ongoing multimillion dollar annual state and local government enforcement costs, possible increased state insurance tax revenues, and possible loss in motor vehicle license and registration fee revenues