Insurance

Your March 27 article on the Supreme Court’s decision upholding the insurance industry’s exemption from local taxes was damaged by a misleading headline implying that the court had given the industry a “tax break.”

Instead, the court’s decision simply means that insurers will not be forced to pay additional taxes to local government entities. Such taxes would only increase the cost of insurance to policyholders. We need to work toward ways of lowering insurance costs, not increasing them.

The story failed to point out that the more than $1 billion insurance premium tax is the fifth largest source of state revenues.

The insurance industry is paying its fair share of taxes and is working hard to change the insurance system so that insurance is more affordable to consumers.

GEORGE W. TYE

Vice President

Assn. of California Insurance Cos.

Sacramento