Amwest Insurance Asks to Keep Existing Rates

Amwest Insurance Group, a Woodland Hills insurance concern, filed an application with the California insurance commissioner to maintain its premiums at rates higher than those called for by Proposition 103.

The proposition was passed by voters Nov. 8, and the state Supreme Court last week upheld most of its features, including its rollback of premium rates to levels 20% below those in effect Nov. 8, 1987. The proposition covers various kinds of property and casualty insurance.

But the court allowed insurers to apply for higher rates if they can show that the rate cut would prevent them from earning a “fair and reasonable” return. Amwest said it asked the commissioner’s approval for keeping its rates at their existing levels.

Amwest is an underwriter of bail bonds and surety bonds in which Amwest guarantees the performance of a third party. The company noted that it has filed lawsuits that argue that Proposition 103 does not apply to surety insurers.