1979-13 RESOLUTION NO. 79-13
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE URGING THE COMMISSIONER OF INSURANCE TO MAIN-
TAIN, AND RECOMMEND TO THE LEGISLATURE MAINTENANCE OF,
AN EQUITABLE SYSTEM OF TERRITORIAL RATING BY WHICH
LOSS COSTS OF AUTOMOBILE INSURERS ARE ALLOCATED TO
AREAS IN WHICH PERSONS CAUSING SUCH LOSSES RESIDE
WHEREAS, the California Legislature has requested the Department of
Insurance study the subject of territorial rating systems used by auto-
mobile insurers; and
WHEREAS, the California Legislature has acted in recent years to
defeat legislation which would abolish territorial rating and require a
single rate be used by automobile insurers throughout the State; and
WHEREAS, a statewide average automobile insurance rate would not
reduce the overall cost of insurance to the public, but would merely
effect a reallocation of existing costs among various geographic areas; and
WHEREAS, throughout California, imposition of an average rate would
increase premiums for two-thirds of California' s motorists; and
WHEREAS, the residents of the City of Grand Terrace would be burdened
with increased premiums as a result of abolishing territorial rating; by
some insurance industry estimates, said increase to approximate 35 per
cent for a typical insured motorist in this area; and
WHEREAS, The Department of Insurance has invited participation in the
study by cities and counties on behalf of their affected residents:
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City
of Grand Terrace hereby urges the Commissioner of Insurance to maintain,
and recommend to the Legislature maintenance of, an equitable system of
territorial rating by which loss costs of automobile insurers are allocated
to those areas in which persons causing such losses reside; and
BE IT FURTHER RESOLVED, that the City Clerk forward a copy of this
Resolution to the Commissioner of Insurance for inclusion in the hearing
record, and to Senator Ruben Ayala and Assemblyman Terry Coggin.
ADOPTED this 15th day of February , 1979.
Mayor OFF the City of Grand Terrace
and of the City Council thereof.
ATTEST:
City Clerk_of the City of Grand
Terrace and of the City Council
thereof.
(SEAL) Approved as to Form:
City Attorney
-2-
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I , SETH ARMSTEAD, City Clerk of the City of Grand Terrace,
DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the City Council of said City at the regular meeting of the City
Council held on the 15th day of February, 1979, and that it was so
adopted by the following vote:
AYES: Councilmembers Tillinghast, Erway, Allen, Grant;
Mayor Petta
NOES: None
ABSENT: None
Subscribed a,ld £wom to hefore me — this
;7City—Clerk o the Cityofrand
Terrace and of the City Council
thereof.
ISEAL) �'CJPLSEAL 11
L. HILL
wLPOR NIA CI
IE IN
STATE OF CALIFORNIA x C.11UNT1 'I
COUNTY OF SAN BERNARDINO ) ss. Ili'n,.9&
CITY OF GRAND TERRACE
I , SETH ARMSTEAD, City Clerk of the City of Grand Terrace,
DO HEREBY CERTIFY that the above and foregoing is a full , true and
correct copy of Resolution No. 79-13 of said City Council , and that
the same has not been amended or repealed.
DATED: February 15, 1979
JII I' Mf, .. MIS
JN—^dav 119�d
LJ2� City clerk o the City of Grand
Terrace and of the City Council
thereof
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(SEAL) O IICIAL 5EAL
(IT Y L HILL
CALItORNIF
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