Brown Insurance Legislation Gains

Legislation that Assembly Speaker Willie Brown contends would provide affordable car insurance coverage for the poor as well as reduced rates for other drivers cleared its first Senate committee Tuesday.

At the same time, the Senate Judiciary Committee removed from the bill a compromise no-fault provision that had been added in the Assembly in an effort to help secure passage.

Representatives of the insurance industry strongly oppose the measure, saying it is an unworkable plan that would drive up the insurance rates of drivers throughout the state.

But Brown, author of the bill, insists that the legislation would allow low-income drivers to buy insurance for $220 a year while saving the insurance industry millions of dollars.

Under the San Francisco Democrat’s bill, motorists would be required to show proof of insurance when registering their vehicles, which would be subject to biennial safety inspections.

In addition, the bill would give police officers the power to pull over drivers and issue tickets for violations of the seat belt law--a provision Brown said would increase compliance with that law, save lives and reduce insurance costs. Under present law, police officers can enforce the seat belt law only when citing motorists for another violation.

Brown predicted that his measure would result in lower insurance costs for all drivers except those who are now uninsured or receive insurance through the state’s assigned-risk pool.

Promises Reduction

“Every other person in the state will have a reduction,” he told the committee.

The bill has the support of the California Trial Lawyers Assn., a longtime antagonist of the insurance industry.

Lobbyists for the insurance industry argue that the plan does not provide the savings Brown claims and would lead to an increase in rates for most drivers.

“This bill is being sold to California consumers as the answer to the high losses and escalating auto insurance rates that plague the state’s drivers,” protested David F. Snyder, a spokesman for the American Insurance Assn. “Nothing could be further from the truth.”

Governor Uncommitted

Kevin Brett, Gov. George Deukmejian’s press secretary, said the governor has no position on the measure but members of his staff are working with Brown’s office to produce legislation Deukmejian can support.

The bill now goes to the Senate Insurance, Claims and Corporations Committee, where a hearing on it is scheduled for today.

“Some version of the bill will get out of our committee,” predicted Sen. Alan Robbins (D-Tarzana), committee chairman. “But if it does not provide enough cost relief, then we will amend it make sure that it does.”