1979-088RESOLUTION NO.
79R 88
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM URGING THE MAINTENANCE OF AN EQUI-
TABLE SYSTEM OF TERRITORIAL RATINGS ON AUTO-
MOBILE INSURERS IN THE STATE OF CALIFORNIA.
WHEREAS, the California Legislature has requested the
Department of Insurance to study the subject of territorial rating
systems used by automobile insurers; and
WHEREAS, territorial rating is a method of differentiat-
ing automobile insurance rates on the basis of claims loss costs,
which differ from area -to -area; and
WHEREAS, the California Legislature has acted in recent
years to defeat legislation which would abolish territorial rating
and require a single rate be used by automobile insurers through-
out the state; and
WHEREAS, a statewide average automobile insurance rate
would not reduce the overall cost of insurance to the public, but
would merely effect a reallocation of existing costs among various
geographic areas; and
WHEREAS, throughout California, imposition of an average
rate would increase premiums for two thirds of California's motor-
ists; and
WHEREAS, the residents of the City of Anaheim would be
burdened with increased premiums as a result of abolishing terri-
torial rating; by some insurance industry estimates, said increase
to approximate eleven percent (11 for a typical insured motorist
in this area; and
WHEREAS, the Department of Insurance has invited parti-
cipation in the study by cities and counties on behalf of their
affected residents.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Anaheim hereby urges the Commission of Insurance to
maintain, and recommend to the Legislature maintenance of, an
equitable system of territorial rating by which loss costs of
automobile insurers are allocated to those areas in which persons
causing such losses reside.
BE IT FURTHER RESOLVED that the City Clerk forward a
copy of this resolution to the Commissioner of Insurance for in-
clusion in the hearing record and to all Orange County Assembly-
men and Orange County Senators.
THE FOREGOING RESOLUTION is approved and adopted by the
City Council of the City of Anaheim this 13th day of February
1979,
ATTEST:
CITY CLERK OF THE ITY OF ANAHEIM
FAL, JR:fm
r O THE 'F Y. OF 4 1., EIM
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF ANAHEIM
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 79R -88 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 13th day of February, 1979, by the following vote of the members` thereof:
AYES: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said
Resolution No. 79R -88 on the 13th day of February, 1979.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 13th day of February, 1979.
(SEAL)
CITY C OF THE CI F ANAHEIM
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 79R -88 duly passed and adopted
by the Anaheim City Council on February 13, 1979.
ITY CLERK