2005
Insurance Reference Manual
Personal Insurance Federation of California Insurance Reference Book
PERSONAL INSURANCE FEDERATION OF CALIFORNIA
In 1988, the enactment of Proposition 103 dramatically changed the way insurance business is conducted in California. Proposition 103 narrowly passed by a 51% vote, but brought sweeping changes in the form of new regulatory requirements. Ambiguities and inconsistencies in Proposition 103 have also led to litigation and continue to create marketplace uncertainty 15 years after its passage.
Proposition 103 instituted a system of prior approval of insurance rates, created an elected office of insurance commissioner and cleverly included a provision whereby third-parties outside the insurance industry or the regulatory authority of the California Department of Insurance (CDI) can intervene in rate hearing proceedings and collect fees from insurance companies for doing so-whether the company's hearing was for a rate increase or decrease. Millions of dollars have been paid to the intervenors and these and other costs of regulation are reflected in the costs of the system. Proposition 103 has also had a stifling effect on real competition and in many ways has impeded California's insurance marketplace.
In 1989, two leading insurers in the state, Farmers Insurance Group and State Farm Mutual, formed the Personal Insurance Federation of California (PIFC). They asked PIFC to serve as the principal advocate for the personal lines property and casualty insurance industry before the Legislature, CDI and governor's office. Today, PIFC represents five insurance company groups and one national trade association which collectively write 50% of the personal lines insurance in California.
The mission of PIFC is to protect the interests of buyers and sellers of personal insurance through legislative advocacy, media relations, and legislative and consumer education programs. PIFC maintains a full-time professional staff in Sacramento to conduct legislative and regulatory advocacy, and collateral public education and media relations programs. PIFC strives to explore and innovate new ideas, and expand the ability of its member companies and the industry as a whole to meet the insurance needs of the state, while working to mitigate or oppose proposals that would increase costs or otherwise be detrimental to the insuring public and the healthy functioning of the insurance market in California.
PIFC PERSONNEL
| Dan C. Dunmoyer |
President |
| Rex D. Frazier |
Vice President & General Counsel |
| Michael A. Gunning |
Senior Legislative Advocate |
| Michael A. Paiva |
Senior Legislative Advocate |
| E. Jerry Davies |
Director of Communications |
980 Ninth Street, Suite 2030, Sacramento, CA 95814
e-mail: pifc@pifc.org Phone: 916-442-6646 Fax: 916-446-9548
web site: www.pifc.org
Member Companies: Farmers Insurance Group, 21st Century Insurance Company,
Safeco Insurance Companies, Progressive Insurance Companies, State Farm Insurance Companies, and associate member, the National Association of Mutual Insurance Companies
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