A California state judge upheld regulations imposed last year that de-emphasized geography in the determination of auto rates.
Superior Court Judge Loren McMaster granted summary judgment to the Department of Insurance yesterday in the case of American Insurance Association v. Garamendi.
Commissioner Steve Poizner, a Republican, who took office earlier this year, praised the ruling as a "victory for California ratepayers and for the Department of Insurance."
He said in a statement, "A driver's insurance premium should be primarily based upon their driving record, not simply the ZIP code in which they live."
American Insurance Association Vice President Ken Gibson expressed disappointment that the merits of the case have yet to receive a full hearing in court.
"The fact also remains that as the regulations in dispute are more fully implemented, the unfair and arbitrary impact of thousands of auto insurance policyholders will be increasingly revealed," Mr. Gibson said.
He noted that the organization will assess its options for a future course of action in the wake of the ruling.
Last year, then Commissioner John Garamendi imposed new regulations prohibiting the use of ZIP codes as rating factors.
The move came in the heat of his ultimately successful campaign for lieutenant governor, and he made a public display of taking on the insurance industry.
In his summary judgment ruling, Judge McMaster said that under Proposition 103, the commissioner had the discretion of how to use ZIP codes as a rating factor.
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