Senate OKs Insurance Reform Bills

A five-bill insurance reform package, including a measure to prohibit most midterm premium increases or policy cancellations on commercial and personal insurance policies, was approved Thursday by the Senate.

Insurance companies also would have to give the policyholder at least 60 days’ notice of a premium increase, non-renewal or any change in coverage for liability policies. A 26-1 vote sent the bill, by Sen. Alan Robbins (D-Van Nuys), to the Assembly, where a similar bill is pending.

Included in the package are three bills that were the subject of recent political radio ads by Los Angeles Mayor Tom Bradley, the probable Democratic nominee for governor. The ads accused Gov. George Deukmejian’s Administration of “blocking” the bills, even thou1734877300Those bills would:

- Establish as many as 10 state insurance rate appeals panels to hear consumer complaints of excessive rates. The vote was 21-10.

- Allow reduced automobile insurance coverage for senior citizens over 65 years of age that could save them an estimated 30%. The vote was 22-5.

- Require the state insurance commissioner to set up a pool of insurance companies to underwrite certain categories of risk when the commissioner determines there is a general lack of liability insurance available in that field. The vote was 22-1.

Another bill approved by the Senate would grant a one-time 5% rebate for liability policyholders if Proposition 51 is approved on the June 3 election ballot. The ballot measure, widely supported by the insurance industry, would limit certain defendants’ liability in personal-injury lawsuits. The vote was 22-9.