TERRITORIAL RATING WARS

Insurance associations are up in arms again over the recent request of lawmakers that the California Supreme Court review the use of ZIP codes in rating auto policies. The Personal Insurance Federation of California, American Agents Alliance and others are on the defense against what they see as a renewed attack by Harvey Rosenfield and the Foundation for Taxpayer and Consumer Rights, who are attempting to do away with territorial rating. Senator Jackie Speier has also joined the petition. “If territorial rating is banned, the hardening market we’ve been watching slowly approach will slam down on us like a guillotine blade,” opined a recent Alliance newsletter. Insurers say changing the rating factors will result in dramatic rate increases.