The State - News from May 16, 1989

A provision for creating a nonprofit consumer advocacy corporation to fight for “fair” automobile insurance rates was amended into pending legislation by Senate President Pro Tem David A. Roberti (D-Los Angeles). The proposal is a response to a recent state Supreme Court decision that upheld most of the voter-approved Proposition 103, but struck down a provision to create an organization which would represent the consumer in state insurance rate proceedings. Insurance companies would be required to inform their customers that they could become members of the consumer advocacy group, which would be funded by voluntary donations. Roberti said the amended bill could come up for a floor vote this week.