Gillespie Tangles with Prop. 103 Backers but She Refuses to Budge

A state Senate insurance committee hearing on the status of implementing Proposition 103 today produced fireworks but little agreement between Insurance Commissioner Roxani Gillespie and the measure’s backers.

Gillespie, answering questions before the Insurance, Claims and Corporations Committee, complained that the rate-slashing measure was not written to give her the rule-making authority that Proposition 103 backers claim she is failing to use.

“We’re in the middle of Beirut, and the hostages here are the California drivers,” she said.

Can’t Predict, She Says

She also stuck by her guns, repeating that she cannot predict when rollbacks ordered under Proposition 103 will be implemented.

Gillespie did promise that she will issue guidelines on the use of geographical criteria in setting automobile insurance rates under Proposition 103 by month’s end.

The hearing in downtown Los Angeles came a day after four consumer and civil rights groups filed suit in Sacramento against Gillespie to force her to immediately implement the measure, which was approved by voters in November.

Gillespie, a former insurance company executive, is accused in the suit of acting “unilaterally, capriciously and arbitrarily in enforcing” Proposition 103.

The proposition’s author, Harvey Rosenfield of Voter Revolt, capitalized on a Gillespie remark today that she was “confused” by some perceptions about the process of implementing the measure.

“I agree with her. She is confused,” Rosenfield said. He and State Board of Equalization member Conway Collis referred repeatedly to a lawsuit they have filed seeking to reorganize the hearings.

“The problem is we can’t find the process because there really isn’t one,” Rosenfield said.

Rosenfield said holding hearings for insurance companies before setting regulations is unfair.

“You need to establish the rules of the game before you start the game,” he said. “This process will result in no rollbacks. And it will result in a massive lawsuit by insurance companies.”

State Sen. Ed Davis (R-Valencia), a committee member, declared that he thought Collis’ appearance with Rosenfield was a tip-off of a Collis campaign for insurance commissioner and demanded to know if that was the motivation for his appearance.

Collis responded that he was motivated by the desire to enable California consumers to receive the benefits of Proposition 103.

When pressed on the campaign issue, Collis said: “Sen. Davis, I am not going to discuss that today.”