Your Money : Prop. 103 Rollback Orders
Insurance Commissioner John Garamendi Tuesday ordered 28 insurance companies to pay rebates and interest totaling $1.25 billion to policyholders under Proposition 103. It was the second such order Garamendi has issued under the 1988 insurance rate rollback initiative.
The first, in October, 1991, involved 14 companies and totaled $1.57 billion. Four of those 14, including market leader State Farm Mutual Automobile Insurance Co. and earthquake-battered 20th Century Insurance Co., have yet to pay rebates. The other 10 settled with Garamendi and
paid rebates ranging from 23% to 89% of the amounts originally ordered.
It is doubtful whether many of the companies involved in Tuesday’s order will settle their cases before Garamendi is replaced on Jan. 2 by his successor, Charles W. Quackenbush. A Garamendi spokeswoman said Tuesday that several companies, including Farmers Insurance Group and United Services Auto Assn., are currently in settlement talks.
Among the insurers listed in Tuesday’s order are (in descending order of California market share):
Company: Total owed (millions)
Fireman’s Fund Group: $161.9
Chubb & Son Inc.: 138.9
Hartford Fire & Casualty: 153.2
Nationwide Corp.: 93.3
Ohio Casualty Group: 61.8
Liberty Mutual Group: 6.3
Home Insurance Group of N.Y.: 65.9
Travelers Ins. Cos.: 30.4
Reliance Group: 72.3
Maryland Casualty Cos.: 1.8
American Financial Ins. Group: 73.4
Golden Eagle Ins. Co.: 24.9
Century National Ins. Co.: 37.8
Colonial Penn Group: 57.0
Company: Total owed (millions)
Zurich-American Ins. Cos.: $43.2
U.S. Fidelity & Guaranty Group: 29.9
Allied Group (incl. Western Heritage): 26.7
Republic Financial Services: 32.1
Atlantic Cos.: 17.5
California Ins. Group: 16.0
Unitrin Group: 18.7
Lawyers Mutual Ins. Co.: 29.4
Universal Underwriters Ins. Group: 4.9
General Accident Ins. Group: 17.5
Clarendon Ins. Group: 6.7
Topa Equities Ltd.: 9.8
Allianz Ins. Group: 6.8
Allendale Group: 16.4
