Voting on Auto Insurance Initiatives

Your story (Part I, Sept. 30) explaining the arguments on Proposition 103 (backed by Ralph Nader) totally ignored the most crucial point.

There was not a word about the ruinous effect it could have on nonprofit mutual companies and inter-insurance exchanges which are owned by their policyholders.

Look at your policy. Is your company a mutual? Is it an exchange? If so, it is policyholder owned, not operated for a profit. These companies don’t have stockholders. Profits, if any, go back to the policyholders. There is no “fat.” These companies cannot take the rate cuts required under Proposition 103 without going broke.

Who are the people insured by these companies? Who would be harmed if these companies fold or leave California? Millions of automobile drivers. Most doctors, chiropractors, dentists and accountants. Thousands of lawyers. All of them have a personal stake in keeping their companies alive by defeating Proposition 103.

RUEBEN M. DALBEC

Orange