The California insurance industry is studying a state appellatecourt ruling that bars insurers from putting surcharges onuninsured motorists to fund lower rates for insured drivers.
Association of California Insurance Companies voiced"disappointment" with the ruling, which said that a state law thatallows insurers to discount auto insurance premiums for drivers whomaintained continuous coverage violates Proposition 103, which waspassed by the voters in 1988.
The association pointed out that one impact of the decision, ifsustained, would be to stop auto insurers from giving discounts todrivers who have no lapses in coverage when they switch to anotherinsurer.
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