CALIFORNIA IN BRIEF : SAN FRANCISCO : Gillespie Rejects 112% Rate Increase

Insurance Commissioner Roxani Gillespie rejected a recommendation from an Insurance Department administrative judge that a 112.3% average statewide increase be approved in assigned-risk auto insurance rates. Gillespie said in San Francisco she will announce her own decision on assigned-risk rates Monday and said she is assessing evidence from hearings conducted on the matter. About 1 million drivers who are unable to obtain insurance coverage elsewhere are enrolled in the assigned-risk system, whose insurance industry-dominated board of governors had requested the 112.3% increase last February. Administrative Law Judge Jerry L. Whitfield concluded last week that the insurers are losing money with assigned-risk drivers and that state law requires Gillespie to put the system on a self-sustaining basis.