YOU ASK:

What is the definition of Proposition 103?

WE ANSWER:

Proposition 103 refers to the ballot initiative that demanded that insurance rates be lowered for statewide auto insurance, and that the rates be made directly proportional to one's driving records, instead of his geographical location.

This initiative was passed in California in November 1988 and state Insurance Commissioner Garamendi implemented the initiative. It required a rollback of insurance rates, making insurance companies decrease their rates for at least 20% of the existing premium rates.

Aside from auto insurance, proposition 103 also regulates other lines such as homeowners, business owners, inland marine, dwelling fire, umbrella coverage, boiler and machinery, earthquake, medical malpractice, professional liability, commercial aircraft, and multi-peril, other liability, among others.

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