Consumer Groups Back Props. 100, 103

Eight consumer organizations, citing tactical considerations in the insurance initiative fight, have decided to urge voters to support both Propositions 100 and 103 and will make independent efforts to push this approach, a Consumers Union official said Monday.

“It’s important for consumers to give all the votes we can to both initiatives. They can both work together,” explained Harry Snyder, West Coast director of the Consumers Union, which publishes Consumer Reports magazine.

Snyder noted results of several polls indicating that Proposition 103, backed by consumer advocate Ralph Nader, is leading all the rest of the initiatives, including Proposition 100 and three others sponsored by insurers, in voter approval.

But, Snyder said, the consumer groups are worried that the well-financed insurers’ campaign may yet push, in particular, Proposition 104, the no-fault initiative, and Proposition 106, the initiative to slash lawyers’ contingency fees, over a majority.

In that case, he said, only Proposition 100 contains clauses that will preempt these initiatives, if it gets more votes, and if its support is drawn away to a more popular Proposition 103, the protections it affords against the insurer proposals could be lost.

Under the circumstances, Snyder contended, the consumer groups are urging voters not to choose between the two measures but rather to vote yes on both.

Proposition 100 is supported by the California Trial Lawyers Assn., the California Bankers Assn., Atty. Gen. John K. Van de Kamp and various consumer groups. It is far better financed than Proposition 103, but its campaign has been hurt by its identification with the trial lawyers.

“Both 100 and 103 contain two essential provisions for consumer protection, strong regulation of the insurance industry and elimination of the antitrust exemption the insurers now enjoy,” Snyder said. “So we’re not unhappy with either of them.”

Both propositions call for rollbacks of insurance rates, although those in Proposition 103 would apply to everyone and only “good drivers” would qualify for those in Proposition 100. The two measures also contain mechanisms for regulating rates.

Joining the Consumers Union in its position was Common Cause, Consumer Action, the Consumer Federation of California, the Consumer Federation of America, the Center for Public Interest Law, California Church Counsel and the Urban League.

Snyder, going beyond the position of some of the other consumer organizations, said the Consumers Union, if Propositions 100 and/or 103 become law, will quickly launch a push in the Legislature for a no-fault insurance law that would give the insurers some cost relief.

“We don’t believe the insurance industry’s Proposition 104 is an adequate no-fault,” Snyder said. “But we support the no-fault concept, and a no-fault bill with adequate benefits to policyholders could provide a compromise approach after November.”

While Proposition 100 contains a preemption against the no-fault package called for in Proposition 104, it does not preclude the Legislature adopting a no-fault plan by a majority vote later.

In another development, the California Field Poll reported in its latest survey that only Proposition 103 continues to hold a lead among likely voters when the full official ballot titles are read to those questioned.