The State - News from Aug. 20, 1986

Twenty-four insurance companies have voluntarily agreed either to initiate or to continue providing some kind of municipal liability insurance, state Insurance Commissioner Roxani Gillespie announced in San Francisco. Gillespie said the Department of Insurance asked insurers to re-evaluate their municipal liability stance in view of the passage in June of Proposition 51, the so-called “deep pockets” initiative, which limits some kinds of liability awards. “We believe Proposition 51 will be a positive factor in restoring the erosion recently seen in municipal liability insurance markets,” the commissioner said. “There seems to be some respite from unavailablity (of liability coverage) but nothing dramatic to report yet.”