ROLAND. I THINK IT'S FINE SO. I
THINK WE'LL GO AHEAD AND GET
ROLLING HERE IT'S TEN OO FOUR.
I'M WELCOME EVERYONE TO THIS
INFORMATIONAL HEARING. OF THE
ASSEMBLY INSURANCE COMMITTEE.
MARCH ELEVENTH TWENTY TWENTY
TODAY WE'LL HEAR INFORMATION
ABOUT AFFINITY GROUPS. IN THE
INSURANCE DISCOUNTS THESE
GROUPS OBTAIN BASED ON RIGHTS
GRANTED BY PROPOSITION ONE OF
THREE. WHICH WAS ADOPTED BY
CALIFORNIA VOTERS IN NINETEEN
EIGHTY EIGHT. I HAVE. A NUMBER
OF CONCERNS ABOUT THE
DEPARTMENT OF INSURANCE
PROPOSAL. AND YOU CAN SEE FROM
VIEWING THE BACKGROUND
MATERIALS PREPARED BY THE
COMMITTEE STAFF. THE COMMITTEE
EXPRESSED CONCERNS TO FORMER
INSURANCE COMMISSIONER DAVE
JONES SEVERAL YEARS AGO.
REGARDING A SIMILAR PROPOSAL.
TODAY WE'LL HEAR FROM THE
DEPARTMENT OF INSURANCE. FROM
POLICY HOLDER GROUPS FROM
INSURERS AND MEMBERS OF THE
PUBLIC WHO MAY WISH TO COMMENT.
REGARDING PROPONENTS OF
CHANGING THE RAGS THE
REGULATIONS I'M INTERESTED IN
HEARING HOW THE PROPOSAL
EXPANDS ACCESS TO DISCOUNTS.
FROM REPRESENTATIVES
OFFICEHOLDERS I'M INTERESTED IN
HOW THE PROPOSAL MADE DEPRIVE
YOUR MEMBERS FROM CONTINUED
ENJOYMENT OF STING DISCOUNT
PROGRAMS THE VOTE. COMMITTEE IS
MISTER CHAD MAYES SIR HE'S NOT
HERE YET- SO LET ME CALL ON
MISTER FRANK BIGELOW WHO'S KIND
OF THE RANKING. REPUBLICAN DO
YOU HAVE ANYTHING YOU'D LIKE TO
SAY MISTER BIGELOW AND I DIDN'T
GIVE YOU A HEADS UP I APOLOGIZE
FOR THAT. I THINK YOUR OPENING
REMARKS. FOR PROBABLY EVERY
MEMBER HERE. WE WANT TO HEAR A
COMPLETE- PRESENTATION THAT'LL
HELP US TO BETTER UNDERSTAND
THE PROPOSAL. AND UNDERSTAND
BOTH SIDES AND SO WITH THAT
MISTER CARE. ALL RIGHT A GOOD
ROUSING FASHION. THANK YOU
MISTER BIGELOW. THANK MISTER
GIBSON AND MISTER COOLEY. FOR
JOINING US THIS MORNING MEMBERS
MAY BE PAYING AND GOING UP. TO
THIS HEARING THERE NO VOTE
SCHEDULED TO BE TAKEN IN A
THAT'S AN ADDITIONAL REASON WHY
MEMBERS MAYBE. FLOATING
FLOATING IN AND OUT OF THE
HEARING MISTER VOEPEL WELCOME.
WE'RE JUST GETTING UNDERWAY. WE
HAVE A FEW PANELS WHICH HAD
BEEN ORGANIZED. IN A FEW
PRESENTATIONS THE FIRST
PRESENTATION. BY THE DEPARTMENT
OF INSURANCE MISTER MICHAEL
MARTINEZ AND BRYANT HENLEY ARE
A ARE. SENDING WELCOME TO OUR
COMMITTEE. MR COOPER'S IN THE
HOUSE WELCOME WELCOME. WE'LL
JUST GET STARTED JIM. GO AHEAD
MISTER MARTINEZ OR RATE GOOD
MORNING THANK YOU VERY MUCH
GOOD MORNING MISTER CHAIR AND
GOOD MORNING MEMBERS THANK YOU
VERY MUCH FOR ALLOWING ME TO BE
HERE MICHAEL MARTINEZ THE
COMMISSION BUT JUST THE DIRECT
AT THE CALIFORNIA DEPARTMENT.
INSURANCE MY CALL AND HENLEY.
SO CAL. AND THE DEPUTY
COMMISSIONER AS WELL AND WE ARE
HERE ON BEHALF OF INSURANCE
COMMISSIONER RICARDO LARA AT
THE CALIFORNIA DEPARTMENT OF
INSURANCE JUST A QUICK A SUB
THAT THE STURGEON FARMS AS
SPEAKER MATERIAL TO YOU ABOUT
ARE ACTUALLY SPECIFIC TO YOUR
DISTRICTS AND BRIAN WALKED
THROUGH A HIGHLY. JUST A FEW OF
THOSE SAN THE STAY. CHAU SEEN.
THE CALIFORNIA. I'M BEFORE IT
OUR IN OUR PROCEEDINGS BUT
AGAIN WILL WALK THESE BUT THERE
ARE THERE'S TO YOUR TO THAT TOM
AGAIN WHAT WILL THROUGH DID SAY
THAT'S WHAT A LOT OF AROUND
OKAY THANK YOU AND- ME BUT
EIGHT DOLLARS IT THE BIG MOMENT
FOR OUR COMMITTEE BECAUSE- NEW
MEMBER. MISTER JIM WOOD- YES
YES. MORNING THAT IS IN THE
HOUSE. JIM WELCOME WELCOME TO
THE COMMITTEE WHAT A GREAT
ADDITION AND- WE'RE JUST
GETTING STARTED WITH THIS
HEARING WOULD YOU LIKE TO SAY
ANYTHING WELL THANK YOU VERY
MUCH MR CARE FOR THE KIND
WELCOME MY APOLOGIES FOR
ALREADY BEING LATE FOR THE
FIRST HEARING. NO PROBLEM
AGAIN- SOMEWHAT- JEEZ IN
ADVANCE BUT- HAPPY REALLY HAPPY
TO BE A PART OF THIS COMMITTEE
THANK YOU SO MUCH GOOD.WELCOME
ITS HEART FELL JIM IN. LOOK
FORWARD TO. CERTAINLY THE I. Q.
LEVEL THE COMMITTEE WAS ALSO
WOULD MAKE WAS JUST RAISES ALL
VERY HUMOROUS. YEAH ALL RIGHT
EXCUSE THE INTERRUPTION BUT TO.
GO AHEAD GO AHEAD MICHAEL YES
OF COURSE AND WE WELCOME YOU
MISTER WOULD A TO THIS
COMMITTEE AS WELL THE
DEPARTMENT. SO I RESPOND ASK
THAT FOR A MOMENT- TO PLEASE
STEP BACK FROM LOOKING AT THE
DRAFT REGULATION TAXED. AND
THAT WAS PUBLISHED PUBLICLY
SHARED WITH STAKEHOLDERS LAST
DECEMBER. REALLY I WANT YOU TO
CONSIDER THAT THE COMMISSIONER
WITH THE COMMISSIONERS COMING
FROM HIS CORE OBJECTIVE HERE.
WHICH IS RESERVE AFFINITY
GROUPS WILL MAKING SURE THAT
SAFE DRIVERS. IN ALL SOCIO
ECONOMIC CLASSES AND REGARDLESS
OF EDUCATION LEVEL ATTAINED AN
OCCUPATIONAL STATUS BENEFIT
EVENLY FROM HIS AFFINITY GROUP
DISCOUNTS IN ORDER TO RECEIVE
MORE FOR. INSURANCE AND SO I
REALLY WANT TO BE ABLE TO STEP
BACK UP FROM THE REGULATION TAX
BECAUSE IT JUST TO GO FROM A
HIGH LEVEL OF WHERE. IT'S
COMING. VIEW ALL OF YOU WORK.
HIM IT WAS HERE IN THE STATE
LET. NO HE'S COME FROM YOU KNOW
THE DISTRICT THAT HE
REPRESENTED IN THE ASSEMBLY AND
ENDS AND- AND STATE SENATE AND
SO YOU HAVE THE- BELIEVE A
STRONG SENSE OF WHO HE IS AS A
PERSON AND WHO HE IS AS A- AS A-
FORMER LEGISLATOR IN AND- IT
CONTINUED ELECTED HERE IN OUR
STATE AND SO AS WE CONTINUE IN
THIS HEARING AND- CALIFORNIANS.
WITH COMPARABLY SAFE DRIVING
RECORDS BENEFIT FAIRLY AND
EQUITABLY FROM THESE INSURANCE
AFFINITY GROUPS WHICH OFFER
MORE AFFORDABLE CAR INSURANCE.
I'D SAY BASED DOT AND I'LL HAVE
MY COLLEAGUES OF WALK THROUGH
THAT WITH YOU AND USE MAPS THAT
THE ANSWER THUS FAR IS NO. DATA
THAT THE DEPARTMENT RECEIVED
LAST YEAR FROM INSURANCE
COMPANIES SHOWS THAT ONE'S
EDUCATION ONE'S OCCUPATION AND
ONCE INCOME LEVEL PLAY A MAJOR
ROLE IN WHETHER ONE RECEIVE THE
DISCOUNT. THANKS IN ADDITION I
ASK THAT YOU JUST PLEASE KEEP
US SOME OF THESE KEY FACTUAL
CONSIDERATIONS IN MIND NAMELY.
UNLIKE OTHER INSURANCE PRODUCTS
CAR INSURANCE HERE IN
CALIFORNIA IS LEGALLY REQUIRED
IN CALIFORNIA IN ORDER TO DRIVE
A VEHICLE I KNOW WE KNOW THAT
BUT IT'S JUST SORT OF THE SORT
OF BASE AS WE MOVE FORWARD. OUR
DEPARTMENT THAT. IS RESPONSIBLE
FOR HIGHER PRIOR APPROVAL OF
THESE CAR INSURANCE PREMIUMS IN
THE STATE TO ENSURE THEY ARE
FAIR AND BASED ON OBJECTIVE
FACTORS THAT HAVE A SUBSTANTIAL
RELATIONSHIP TO A DRIVERS RISK
OF LOS. THIRDLY PROP ONE OF
THREE- REQUIRES CAR INSURANCE
PREMIUMS BE BASED ON THREE
MANDATORY FACTORS AND ENSURE
YOU'VE YOU MIGHT HAVE HEARD OF
THESE AS A DRIVER SAFETY
RECORD. ANNUAL MILES DRIVEN.
AND YEARS OF DRIVING EXPERIENCE
AS WELL AS PROHIBITS UNFAIRLY
DISCRIMINATORY OF BRICKS.
FOURTHLY THE COMMISSIONER CAN
THEN ADOPT OPTIONAL THE COLD
OPTIONAL RATING FACTORS BY
REGULATION THAT HAVE BY AND
LARGE THEY HAVE A LAST AND THEY
SHOULD HAVE A LAST IMPACT ON
PREMIUMS IN THE THROUGH THE
AFFIRMATION MANAGER AFTER IS
THAT STATE. YET IS OFF TRACK
CANNOT BE USED AND IT IS
COMMITTEE WAY AGAIN CAD DRIVERS
WITH UNPAYABLE RISK LAW. FOR
THESE EIGHT. THE RECORD SO. YOU
WHAT THE SAME TWO DIFFERENT
DRIVE. EVERYTHING IN A- THE
THREE MANDATORY FOR. PLAY INTO
WHAT IT PAY AGAIN THE SAFETY
RECORD THEIR ANNUAL MILES
DRIVEN. AND THEIR YEARS OF
DRIVING EXPERIENCE. HOWEVER
SUPPORT THAT EDUCATION LEVEL
TAMED. AND OCCUPATIONAL STATUS
HAVE NEVER BEEN ADOPTED BY THE
DEPARTMENT AS OPTIONAL RATING
FACTORS. FIFTY PROP ONE OF
THREE PERMITS GROUPS TO EXIST
OKAY AND THE GOAL OF DEPARTMENT
IS TO ENSURE THAT SUCH A GROUP
DISCOUNTS ARE DISTRIBUTED AMONG
ALL THOSE. SURE IT'S RICK OF
THEIR OR OCCUPATION AND THAT'S
KEY AGAIN AND MY COLLEAGUES A
BRIGHT WILL WALK THROUGH JUST
SORT OF THAT THAT THERE ARE
SOME. AS FOR A POP THIS IS
IMPORTANT DISTINCTION. FORTY
FOUR NHà A AND HEALTH FOR THE
WE'VE GONE REGARD TO PUBLIC IN
PER ALL THE OF HEALTH RESIDENTS
CALIFORNIA ALREADY AND THE USE
GENDER. CREDIT SCORE PRIOR.
PRIOR COVERAGE LIMITS AND
UNINSURED STATUS IN THE
CALCULATION OF A DRIVER'S AUTO
INSURANCE PREMIUMS TODAY AN
OPTIONAL RATING FACTORS AND
THOSE ARE IMPORTANT TO KNOW
BECAUSE IT'S JUST HELP. AS
POLICY IS DECIDED THAT THOSE
TWO SIX OF A DRIVER SHOULD NOT
INSURANCE COMPANY IN ORDER. ON
THE PREMIUM THE FIFTH TODAY.
COUPLE SINGLE PASSOVER BRIAN.
PLEASE KNOW THAT THERE ARE
THREE TODAY MICHIGAN MASS. AND
VERMONT BANNED THE USE OF
OCCUPATION EDUCATION AS RATING
FACTORS FOR CAR INSURANCE TODAY
AND SO THERE ARE THREE STATES
ALREADY IN IN THE IN THE UNITED
STATES THAT BAND RIGHT THE USE
OF EDUCATION ATTAINMENT AN
OCCUPATION. THE CARD IS TODAY.
THE STATE OF NEW. I'M ALSO
PROHIBITS THE USE OF OCCUPATION
ARE EDUCATION AND LESS THE
INSURER DEMONSTRATES THESE
DOCTORS ARE TRULY PROTECT
PREDICTIVE OF NOT JUST THE
CORRELATION BUT COSTLY. IT IS
SIX. IT WILL NOW PASSED FOR TO
MISTER HENLEY TO A TO- PROVIDE
YOU KNOW OVERVIEW OF WHAT THE
DEPARTMENT HAS DONE AND ITS
OBJECTIVES. THANK YOU MISTER
MARTINEZ AND GOOD MORNING
MISTER CHAIR AND COMMITTEE
MEMBERS THANK YOU FOR THE
OPPORTUNITY TO BE HERE THIS
MORNING. AGAIN MY NAME IS BRIAN
KENLEY I'M DEPUTY CURRENT
SPECIAL COUNSEL TO INSURANCE
COMMISSIONER RICARDO LARA. INDO
JUST TO TAKE THE COMMITTEE
MEMBERS BACK TO TWENTY NINETEEN
IT LIKE TO GIVE A LITTLE
PERSPECTIVE ON HOW WE GOT TO
WHERE WE ARE TODAY.
COMMISSIONER LARA BEING A NEW
INSURANCE COMMISSIONER IN
TWENTY NINETEEN HAD BEFORE HE
EVEN TOOK OFFICE COULD BEEN
AWARE OF THE CONCERN THAT HAS
BEEN RAISED FOR A NUMBER OF
YEARS NOW ABOUT. WHETHER AUTO
INSURANCE RATES. SIR SENSE OF
SUS THESE OF CALIFORNIA'S
DRIVERS SPECIFICALLY THERE HAD
BEEN CONCERNS RAISED ABOUT THE
USE OF AFFINITY GROUPS IN
CALIFORNIA. AND WHETHER THOSE
AFFINITY GROUPS. ARE SOCIO
ECONOMICALLY BALANCED TO ALL
SAFE DRIVERS WHETHER THEY ARE
RICH OR POOR WHETHER THEY HAVE
A LOT OF EDUCATION OR LITTLE
EDUCATION. HELP BALANCE ARE
THOSE GROUPS SO THERE WERE A
LOT OF RUMORS A LOT OF CHATTER
FOR INSURANCE COMMISSIONER
RICARDO LARA TOOK OFFICE. WHEN
HE GOT TO OFFICE OF COURSE AS
YOU MIGHT IMAGINE THERE WERE
MANY WHO WERE EAGER TO HAVE THE
COMMISSIONER STOP. THE TWO
GROUPS RIGHT OUT THE GATE. LOW
OR THEY SHOULD EXIST
COMMISSIONER LOT OF BEING VERY
MINDFUL AND METHODICAL AND-
PLAYED ABOUT HIS. THAT'S NOT
THAT'S- INTENDED I WANT TO GET
THE FACTS I WENT IN FIRST WHAT
THE INFORMATION IS WHERE TO THE
FACTS LEAD US. AND THEN DECIDE
UPON BEST STEPS BASED UPON
THOSE FACTS AND SURE ENOUGH
THAT'S EXACTLY WHAT THE
COMMISSIONER DID. IN MAY OF
TWENTY NINETEEN INSURANCE
COMMISSIONER RICARDO LARA
INVITED THE INSURANCE INDUSTRY
TO PROVIDE DATA TO THE COMPUTER
SCHEDULING A SEPTEMBER.
INVESTIGATORY HEARING WHERE WE
WOULD REVIEW THAT DID. NOT
COMMISSIONER LARA WAS VERY.
INTERESTED IN MAKING SURE THIS
WAS A VOLUNTARY REQUEST FOR
DATA IT WAS NOT A MANDATORY
LINE HERE LIES THE IMPORT OF
THAT. AND SO WE HAVE NOT A
HUNDRED REPRESENTATION FROM THE
INDUSTRY BUT WE HAD A VERY
LARGE MARGIN OF THE INDUSTRY
THAT VOLUNTARILY SHARE DATA. SO
I WAS A PRETTY OF THE
COMMITTEES. PAPER WHICH- WAS
WAS VERY UP NICK WENT THROUGH A
LOT OF DETAILS ABOUT THIS
PROJECT AND INCLUDING THE FACT
THAT. BASED UPON THE COMMITTEES
BACKGROUND PAPER DATA COLLECTED
WHICH WAS MORE THAN SIXTEEN
MILLION VEHICLES DRIVING IN
THIS STATE OR MORE THAN SIXTY
PER. OF THE ENTIRE INSURANCE
MARKETS. ALL OF WHOM ARE IF THE
GROUP INSURANCE. FOR A FIFTH.
TO SMOTHER COST. AND AS- PAPER
OKAY GUYS THAT THIS DAY
COLLECTED IS. STILL ADEQUATE
DRAW A GENERAL GENERALIZE
CONCLUSIONS AND OF COURSE. IN
MISS COMMISSION RICARDO LARA
AGREES. SINCE IN EIGHTY EIGHT
IF YOU'RE SINGLE NOTE THIS IS
THE FOR TIME IN TRANSCRIPT OR
HAS. STE AFFINITY GROUPS STUDY
THE IMPACT OF AFFINITY GROUPS
DESPITE THE FACT THAT SINCE
NINETEEN EIGHTY EIGHT THERE HAS
BEEN A RISING CONCERN. ABOUT
THE IMPACT OF AFFINITY GROUPS
ON DIFFERENT SEGMENTS OF
DRIVERS IN CALIFORNIA. USE ME
SIR MISTER COOLEY HAS A
QUESTION. IT'S ACTUALLY MORE OF
AN OBSERVATION- EARLIER TODAY
THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS
CANCELED ERRORS ON A MEETING
THEY DID CORONAVIRUS. PRIOR
COMMISSIONERS IN CALIFORNIA AT
THE END A I SEE HAVE PROMOTED
THESE SORTS OF AFFILIATED
GROUPS. PRECISELY BECAUSE BOB
HUNTER IN TWO THOUSAND EIGHT IN
HIS BIG STUDY OF TO THE OFOUR
INSURANCE HE SAYS WE HAVE THE
STATE OF THE ART SYSTEM IN THIS
NATION. VANITY GROUPS.
DISABILITY NEGOTIATED IS A
GREAT ADVANTAGE AND I SHOULDN'T
SAY THE GOSHEN BECAUSE TO GO
SHE IT'S NOT IN PROP ONE OF
YOUR COURSES AS AN INSURER MAY
ISSUE ANY COVERAGE. TO A GROUP
AND IT'S NOT UNFAIRLY TO RETORT
SO YOU'RE SAYING NO OTHER
COMMERCIALS LOOKED AT IT BUT IN
FACT CALIFORNIA REGULARS HAVE
BEEN GOING TO ANY I SEE. SO
THERE SHE HAS DONE STUDIES. IN
A SHE IS ENCOURAGE OTHERS TO
COPY. CALIFORNIA STATE THE
STATE STATE OF THE ART. SO TO
SAY THAT HASN'T BEEN LOOKED AT.
TO THE CONTRARY IT HAS BEEN
PROMOTED. AS ONE OF THE GREAT
INNOVATIONS THAT PRIOR TO THE
ADOPTION PROPER THREE THESE
GROUPS COULD NOT BE FORMED.
RESERVATION TO FORM THEM WAS
NOT BEEN PROP ONE OH THREE. CAN
POINT AT THIS. DRIVE THANK. DO
FUNDED PURPOSE OF PROP ONE OF
THREE WHICH PROMOTE COMPETITION
INSURANCE MARKET PLACE. AND THE
RECORD THAT BOB HUNTER TOUTS
THAT HAS BEEN TOUTED THE ANY I
SEE IS INDEED COMPETENT AS
ENSUED AROUND THESE IDEAS AND
IS A NERD TO THE BENEFIT OF
CONSUMERS AND AFFORDABILITY SO
I THINK THERE'S A FUNDAMENTAL
DOES. BUT ACT I. MEASURES
LOOKED AT THIS AND THEY BEEN
PROMOTING AROUND THE NATION AND
THAT IS IN THE RECORD BOB
HUNTER TWO THOUSAND EIGHT
REPORT THANK YOU FOR THE
COMMENTS AND WE MEMBER COOLEY
AND- I WOULD JUST LIKE TO SAY I
APPRECIATE THE PERSPECTIVE I
THINK THERE ARE A FEW. POINTS
IN TWO THOUSAND AND TWENTY. THE
DATA THAT WAS COLLECTED HERE IS
ABOUT CALIFORNIA'S SPECIFIC
DRIVERS AND PARK COMMISSIONER
IS NOT GOING TO BE LIKE PRIOR
COMMISSIONERS TO STATE WHETHER
AFFINITY GROUPS ARE GOOD OR BAD
WITHOUT LOOKING AT THE FACTS
THE FIRST WE DIRECTED. THE AND
IT OR WHAT WE LOOK TO TELL YOU
A LITTLE BIT ABOUT WHAT THOSE
FACTS GO IN SO WHAT WE FOUND IN
THE DATA WE COLLECTED OVER
SIXTY MILLION. 60% OF THE CUP.
WE'RE REAL TWENTY FIVE OR SO.
WE FOR THAT THEY PREDOMINATELY
FAVOR PROFESSIONAL OCCUPATIONS
UPPER EDUCATION LEVELS AT THE
EXPENSE OF OTHER SAFE DRIVING
GROUPS FOR LOW INCOME LESS
EDUCATED DRIVERS BUT NONE THE
LESS SAFE DRIVERS. THE IN THIS
THE DATA TALKING NOT OUR
COMMISSIONER NOT PRIOR
COMMISSIONERS NOT MISTER HUNTER
THIS IS THE DATA FOR CALIFORNIA
IN TWENTY NINETEEN COLLECTED IN
TWENTY NINETEEN SHOWS THAT
DRIVERS AN AFFINITY GROUPS ARE
MORE LIKELY TO RESULT TIP CODE
WITH A PREDOMINANTLY NON.
ELECTION ADD A SH QUARTER OF
PAPERS RESIDE SIR COMMUNITIES
WE OUR STATE OR NOT IN AN
AFFINITY WHILE THE REST OF THE
STATE HAS UPWARDS OF 57% OF
DRIVERS ARE IN AN AFFINITY
GROUP THE DATA SHOWS THAT
DRIVERS AFFINITY GROUPS ARE
MORE LIKELY TO RESIDE IN ZIP
CODE BUT HAVE A HIGHER AVERAGE
EDUCATIONAL ATTAINMENT ONLY
THOSE 20% OF THOSE LIVING WITH
THE LOWEST NUMBER OF COLLEGE
TO. IN THE CODES ONLY TO.
DISCOUNTS COMPARE THAT TO
RESTRICTIONS WITHIN ZIP CODES
THAT ARE 56% WERE HALF OR MORE
OF THOSE DRIVERS HAVE COLLEGE
DEGREES SO PEOPLE WERE HALF OR
MORE PEOPLE IN THE ZIP CODE
HAVE COLLEGE DEGREES 50% THOSE
DRIVERS GET DISCOUNTS COMPARE
228% FOR PEOPLE WHO DRIVE THE
DON'T HAVE DEGREES. BECAUSE
AUTO INSURANCE IS A ZERO SUM
SYSTEM THE WAY IT WORKS IS AN
INSURER COLLECTS PREMIUM AND
FOR THOSE PEOPLE IT PROVIDES A
DISCOUNT TO IT MUST
COUNTERBALANCE THOSE DISCOUNTS
WITH SURCHARGES TO OTHER
DRIVERS AND THAT'S WHAT IS
MEANT BY A ZERO SUM STUFF SOME
OF CALLED IT IN THE WAY OF
SQUEEZING A BALLOON WHERE IF
YOU HAVE A SQUEEZE ON ONE AND-
IT MUST FLOW TO THE OTHER SIDE
OF THE BLUE AND IT'S THE SAME.
SYSTEM OF MONEY IT HAS BALANCE
OUT THAT'S THE SOME NATURE WE
FIND BASED UPON OUR STUDY THAT
DRIVERS WHO RECEIVE. DIRECTOR
AND YET WE DON'T HAVE WE DON'T
FIND AFFINITY GROUPS FOR
DRIVERS LIKE A FACTORY WORKER
THAT BALANCE OUT SO WHAT
HAPPENS IS IT IS FOLKS WHO ARE
FACTORY WORKERS THOSE WERE NOT
DESIGNATED INFINITY GROUP THAT
PAY FOR THE DRUG THE DRIVERS
THEY GET THOSE DISCOUNTS SUCH
AS IT GIVES. WHAT WE- TOUCH
WHICH IS A TWO TIER SYSTEM
WHERE THOSE WHO MAKE LESS GET
CHARGE HIGHER RATES SO THAT THE
CURRENT AFFINITY GROUP SYSTEM
BECOMES A PROXY FOR ONE'S
INCOME THAT REWARDS CUSTOMERS
WHO WILL PURCHASE OTHER
PRODUCTS FROM THE INSURER. THUS
PROVIDING A LARGER POTENTIAL
REVENUE STREAM TO THE INSURER
AND I THINK IT'S IMPORTANT TO
POINT OUT JUST LAST WEEK
CONGRESS HELD A HEARING ON
MARCH FOURTH. THE HEARING WAS
FROM THE US HOUSE OF
REPRESENTATIVES COMMITTEE ON
FINANCIAL SERVICES SUBCOMMITTEE
ON HOUSING COMMUNITY
DEVELOPMENT AND INSURANCE. THE
TITLE OF THAT HERE WAS DRIVERS
DISCRIMINATION AND EXAMINATION
OF UNFAIR PREMIUMS PRACTICES
AND POLICIES IN THE AUTO
INSURANCE INDUSTRY. IT WAS
FASCINATING TO READ THE TEST.
ONE INSURANCE CHIEF OP. SIR
THIS THE CHEN BY THE OF POPE
HE'S OPERATE OFFICE OF BOTTOM
INSURANCE COME. YOU KNOW AUTO
INSURANCE DEBATE IN NEW JERSEY.
HE TESTIFY IN PART AS FALL.
QUOTE HI INCOME. OFFER A LARGER
REVENUE STREAM TO AUTO INSURERS
BECAUSE THEY HAVE THE ABILITY
TO PURCHASE OTHER PRODUCTS FROM
MULTI LINE INSURANCE CARRIERS.
A COMPANY IS HAPPY TO OFFER
LOWER AUTO INSURANCE PREMIUMS
WHEN THE CONSUMER IS ALSO
PURCHASING SEVERAL OTHER
PRODUCTS THAT MAKE. ALL ASSET
PACKAGE FIVE ATTRACTIVE TO THE
COMPANY HERE IS AN EXECUTIVE OF
AN INSURANCE COMPANY
RECOGNIZING THAT INDEED
INSURERS HAVE AN INTEREST IN
SELLING PRODUCTS TO THOSE WILL
PURCHASE MORE PRODUCTS.
NATURALLY THOSE WITH LESS MONEY
WHO HAVE TO CHOOSE BETWEEN
BUYING INSURANCE WHICH IS
REQUIRED BY LAW AND BUYING
OTHER PRODUCTS THEY ARE GOING
TO HAVE FEWER OPPORTUNITIES TO
PURCHASE OTHER COVERAGES AND
STIR PO OF CURE AUTUMN. THIS
COMPANY RECOGNIZE THIS
CONGRESSIONAL TESTIMONY
CONGRESS WAS VERY SIR OUT
WHETHER STATES UP EARLY
REGULATING IN THIS SPACE HELLO.
THE CAN. IT BY MID MANY THE
TESTIFIED BEFORE THE FOR THESE
REASONS. SO I WOULD LIKE TO
POINT OUT A FEW EXAMPLES OF
SOME SURPRISING OVERREPRESENTED
GROUPS IN THE FILINGS THAT WE
RECEIVED TODAY FROM INSURERS
THAT AFFINITY GROUPS. WE HAVE
GROUPS THAT ARE PREDOMINANTLY
BASED ON FUND GROUPS LIKE
ENGINEERS. DOCTORS LAWYERS
FRATERNITY. STE PRETTIES THERE
IS A GROUP WANT ONE GROUP THAT
IS CALLED QUOTE WHITE COLLAR
CONTRACTOR DEVELOPER INSPECTOR
THESE ARE A FEW REAL EXAMPLES
OF THE PREDOMINANT TYPES OF
GROUPS WE SEE INSURER FILINGS.
WHAT WE SEE IS. THAT ART
INVESTMENT BANKERS LAWYERS
CORPORATE EXECUTIVES
FRATERNITIES AND SORORITIES
EXPLOSIVE NOTICEABLY ABSENT
GROUPS FROM THE DEPARTMENTS PER
VIEW OF FILINGS. ESCAPE WORKERS
ARE NOT BE FOUND SEEN PROCESS
NOPE- WITHIN THESE FILINGS
DAYCARE WORKERS NOT ON. FILING
FIRST. RICHARD ACTOR REPORTERS
HOUSEKEEPER AB FROM THE
AFFINITY ON BUT I'D LIKE TO DO
IS IT YOU ASSEMBLY HAS A AS ZIP
THAT SHOWS VERY THEIR DISTRICT
I SHOULD FOR MAPS FOR YOUR
DISTRICTS THESE SHOWS SIP CODE
THAT MAY HAVE SOME OVERLAP WITH
A- HISTORY. WE LIKE TO YOUR
FOCUSED IN ON YOUR SPECIFIC.
WHENEVER DISTRICTS THAT'S FOR
YOUR INFORMATION I'D LIKE TO
LOOK AT THE CITY WIDE MAPS
WHICH FOR THE FIRST THREE PAGES
YOU HAVE. SO THE FIRST ONE I'D
LIKE TO TAKE A LOOK AT IS THE
LOS ANGELES AREA. AND THIS. WAS
YOU HAVE EIGHT ALLEGING HERE ON
THE SIDE WHERE IT HAS AN
AFFINITY PERCENTAGE FROM ZERO
TO ONE HUNDRED PERCENT. AND YOU
MAKE THIS CLEAR. THIS IS BASED
ON THE OTHER WE COLLECTED THE
INVESTIGATORY HEARING LAST. AND
IT THE REDDER THE ZIP CODE THE
LESS LIKELY IT IS THAT THAT ZIP
CODE HAS. PEOPLE IN THAT ZIP
CODE THAT ARE GETTING AN
AFFINITY GROUP DISCOUNT.
CONVERSELY THE GREENER A ZIP
CODE IS THE MORE PREDOMINANT IS
THAT DRIVERS WITHIN THAT ZIP
CODE A RECEIVING A DISCOUNT.
AND SO LOOKING AT THE LOS
ANGELES AREA THE ONE WHO'S FROM.
LOS ANGELES SEE. A SOMEWHAT
THIS TREND IN TERMS OF.
REGIONALLY WHERE YOU SEE RED
AND REGIONALLY WHERE YOU SEE
GREEN. WAVE IT SAM. WE USED PER
CAPITA INCOME HERE IN OUR
COLLECTION. YOU CAN SEE THAT L.
AIR. UNDER NINTH. OR CAP. FOR
THAT ZIP CODE THERE IS FIFTY
ONE. OF THE DRY. CODE THE
VEHICLE STUDY. GET IN A- THIS.
WHERE THE CAPITA INCOME WAS
JUST TWELVE AND WHERE YOU SEE.
PATIENT A TWELVE PER. THE SAME
PATTERN AS SHOWN ON IN A CITIES.
IF YOU LOOK IT'S FRANCISCO
FORTY. LOOKING AT NOR BEACH THE
INCOME PER CAPITA BASED ON THE
DATA WE COLLECTED OVER SIXTEEN
MILLION VK IT'S A HUNDRED AND
NINETEEN THOUSAND DOLLARS. COME
IN THE NORTH AREA HAS 75% GROUP
PARTICIPATE. COMPARE THAT
OAKLAND WHERE PER CAPITA INCOME
IS SIXTEEN THOUSAND. GROUP
PARTICIPATION AT 29% AGAIN
LOOKING THESE GYMS YOU. BRENT
ARTIST. THIS ANY EIGHT FINAL
CAR ROLLED WITH A PER CAPITA
INCOME OF SEVEN THOUSAND HAS A
GROUP PARTICIPATION RATE OF 68%
THAT WITH WILL BE HIGH IN
INCOME PER CAPITA OF TWENTY
THOUSAND WORDS. WE I'D SAY THAT
JUST. AT THESE PAD EXIST
THROUGHOUT THE STATE THEY EXIST
WITHIN YOUR OWN MEMBERSHIPS
DISTRICTS. SO THAT THE
COMMISSIONER HAS MADE IT CLEAR
BASED UPON THE STUDY THERE IS
ONE CLEAR UNDENIABLE FACT TODAY.
BASED ON THE DATA WE DID MORE
THAN 60% OF THE MARKET MORE
THAN SIXTEEN MILLION VEHICLES
IN THE STATE. MORE FLUENT
EDUCATED DROP RECEIVE MORE
GROUP DISCOUNTS BEEN LESS
WEALTHY LESS FORMALLY EDUCATED
IF DRIVERS. IN SH HAVE YET
PROVIDE US WITH DATA TO SHOW
WHY POUR LES FORMALLY EDUCATED
DRIVERS NOT RECEIVE THE SAME.
SORT OF THE SAME OUT AS WITH
WHO ARE WEALTHY WHICH RIGHT
PRESENT. WITH THE- THREE MISTER
GRAYSON GO HEADS YOUR MISTER
CHAIR ADD TO AS AN I HAVE THE
PRESENT COMING FOR I JUST NEED
SOME CLARIFICATION ON- HOW COME
ABOUT WITH THE INCOME PER
CAPITA MY DISTRICT. ARE YOU
HAVE AN INCOME CAPITA TWENTY
TWO THOUSAND HOWEVER. THAT'S
NOT THE FIGURES THAT I WOULD
HAVE AS FAR AS- INCOME IN MY
AREA AS FAR AS AN AVERAGE
INCOME SO. CAN YOU EXPLAIN HOW
YOU CAME FOR THESE TWO YEARS
ABSOLUTELY THANK YOU SO
ASSEMBLY MEMBER GRAYSON A
COUPLE OF POINTS SO THAT THE
FIGURES COME FROM. CENSUS DATA.
THERE IS A COMPANY AS REPEAT
DEMO. THAT US INSISTS. FOR PER
CAP INCOME FOR ZIP CODES THAT'S
THE DATA SOURCE. I WANT TO
EMPHASIZE WHAT PER CAPITA
INCOME GAINS HEARING BECAUSE IS
AN IMPORTANT TIME TO DO THAT.
PER CAPITA INCOME IS NOT THE
SAME THING AS AVERAGE SALARIES
SO. WHAT PER CAPITA INCOME
MEANS LET ME JUST TAKE AN
EXAMPLE OF A FAMILY OF FOUR.
YOU HAVE LET'S SAY A HUSBAND
AT. A SPOUSE TO CHILDREN. BUT
IN THE HOUSE TURN ONE HUNDRED
DOLLARS AND OF COURSE THE
CHILDREN HAVE NO INCOME SO TWO
HUNDRED THOUSAND DOLLARS FOR
THAT FAMILY OF FOUR YOU TAKE
THE TWO HUNDRED DIVIDED BY
FOUR. AND THE PER CAPITA INCOME
OF THAT HOUSEHOLD IS FIFTY
THOUSAND. TWO I DO BESIDES THAT
WHEN YOU SEE A FIGURE LIKE LIKE
A TWELVE THOUSAND THAT MAY NOT
BE THE SALARIES OF THE PEOPLE
DISTRICT. IT'S ON A PER CAPITA.
SO IF. TO DO AVERAGE. INCOME
FOR THE HOUSEHOLD WITH THAT
CHANGE THIS AT. THE GLEE.
RATHER BUT A I'M JUST ASKING
POLICE SUBMIT TO YOU THAT WHEN
WHETHER YOU LOOK AT THIS ON A
PER CAPITA BASIS OR JUST AN
INCOME EARNER BASIS THE TRAINS
WILL REMAIN THE SAME. IF YOU
LOOK AT THE REGIONS OF THE
CITIES WHERE YOU SEE. ALL THESE
HOW THESE. ARE GETTING MORE AND
LESS AFFINITY GROUPS. THAT'S
GOING TO EXIST THESE ARE THE
DROP IN THESE CATIONS
REGARDLESS OF WHETHER WE'RE
TALKING ABOUT. IF YOU SUGGEST
THEY WERE GONNA REMAIN THE SAME
IS A REASON WHY WE DIDN'T USE
INCOME BECAUSE MOST PEOPLE
WOULD RELATE TO INCOME MORE
THAN THEY WOULD PER CAPITA. AND
IT'S A FAIR POINT ASSEMBLY
MEMBER. THE RESOURCES WE HAD US
CENSUS DATA AND AS RE
DEMOGRAPHICS DATA WERE THE BEST
TOOLS WE HAD TO USE BASED UPON
THE STUDY. IT EITHER CONCERT
OTHER WAYS TO SHOW THE SAME
IMPACT. THANK YOU. MISTER
COOPER. TO QUESTION SO
OBVIOUSLY YOU WANNA DO IT
DISCOUNTS FOR THE STUDY GROUPS.
BUT WILL STILL BE OTHER
DISCOUNTS IN THE INSURANCE
ARENA FOR OTHER THINGS CORRECT
THAT IS CORRECT AND THEN ON THE
AS FAR AS CLAIMS GOOD. THE TWO
DIFFERENT GROUPS YOU'RE MISSING
HERE. FOR THE CLAIMS OF TO HIRE.
LOWER GROUPING BUT SINCE. WE
HAVEN'T HEARD ANYTHING ABOUT
YES. ASSEMBLYMEMBER COOPER I
THINK THAT'S A REALLY IMPORTANT
QUESTION AND- AND I SHOULD
EMPHASIZE WHAT ARE DATA DOES
NOT SHE DOES NOT STUDY WE DO
NOT WE DID NOT STUDY CLAIMS
DATA. BASED UPON THE
INFORMATION WE RECEIVE WE STUDY
JUST. ZIP CODE LEVEL. VEHICLES
WHO GETS GROUPS WHO DOES NOT A
QUESTION WE CONTINUE TO ASK
INSURERS AND AGAIN WOULD VAST.
WE HELD A WORKSHOP IN
INVESTIGATORY HERE IN
SEPTEMBER. A WORKSHOP IN
JANUARY WE HAVE URGED INSURERS
TO PRESENT DATA TO EXPLAIN TO
US. IF POOR DRIVERS BECAUSE
POOR DRIVERS LESS EDUCATED
DRIVERS ARE REPRESENTED HERE.
WHY WHY IS THAT WE'VE NOT
RECEIVED AN ANSWER TO THAT
DATA TO DEMONSTRATE THAT OR-
ARE LESS EDUCATED DRIVERS ARE
RISKIER DRIVERS. WE JUST
HAVEN'T RECEIVED THE DATA. THE
FOLKS TALKS ABOUT UNINSURED LAW
OF PEOPLE NEED TO CARRY MORE
UNINSURED MOTORISTS INSURANCE
THESE DAYS RICHARD MOTORS
THAT'S A BIG ISSUE. IS DOES
THAT FACTOR THAT I MEAN THERE
ARE A LOT OF OTHER. MOVING
PARTS TO THIS SO I'M TRYING TO
WRAP MY HEAD AROUND IT I THINK
THAT'S ANOTHER IMPORTANT COMMON
ASSEMBLY MEMBER COOPER IT THERE
ARE A LOT OF MOVING PARTS TO
THIS BUT I WOULD SUBMIT TO YOU.
THAT FOR THOSE DRIVERS WHO ARE.
JUST GETTING BY BUT PURCHASING
INSURANCE WHICH IS REQUIRED BY
LAW. IF THEY'RE NOT GETTING
DISCOUNTS THAT IS NOT HELPING
AN UNINSURED MOTORIST ISSUE IT
IS MAKING IT WORSE. WE'RE
TALKING ABOUT PEOPLE WHO ARE
CHOOSING WHETHER TO BUY
GROCERIES THAT WEEK OR PAYS
THEIR THEIR PAYMENT PLAN FOR
PREMIUM. SO TO THE EXTENT THESE
DRIVERS ARE SAFE DRIVERS AND
NOT RECEIVING THE DISCOUNTS WE
ARE DOING A DISSERVICE TO
CALIFORNIANS WITH THE CURRENT
SYSTEM AND THE COMMISSION IS
CONCERNED. THANK MR MAY SAYS GO
DO YOU WANT TO CALL JUST
BECAUSE I'VE GOT THE MAP OF MY
DISTRICT IN- DISTRICT FORTY TWO
AND DAMS THERE'S AN AWFUL LOT
TO READ HERE EXCEPT FOR-
THERE'S A LITTLE GREEN HOW
CALLED AN OLIVE- ON THE NORTH
SIDE OF SAM YOU KNOW COUNTY MY
GUESS IS- THAT'S TWO TWENTY
POUNDS WRINKLE INQUIRER GROUND
COMBAT CENTER AND MY GUESS IS
THAT MIDDLE THE MEN AND WOMEN
WHO ARE IN THE MILITARY- ARE-
PERCENT A PRETTY CLOSE TO IT.
IS THAT ACCURATE. ALL OF YOUR
IS THERE ASSEMBLYMEMBER MAYES
THAT THAT IS TWENTY NINE PALMS
THE GREEN AREA YOU SEE AND THE
REASON WE DIDN'T HIGHLIGHT THAT
AREA IS WE WERE WE WANTED TO
MAKE SURE WHERE WE SHOULD
HIGHLIGHTED THESE BALLOONS THAT
WE HAD A STATE CREDIBLE AMOUNT
OF DRIVERS WITHIN THAT ZIP CODE
AND WHAT I MEAN BY THAT IS IF
YOU JUST HAD TEN DRIVERS AND IS
IT CODE. NOT A VERY
STATISTICALLY SIGNIFICANT
SAMPLE- SO WE WANTED TO
HIGHLIGHT ZIP CODES THAT HAD AT
LEAST A THOUSAND VEHICLES A
THOUSAND AND EIGHTY TO BE
PRECISE WAS DETERMINED AS THE
RIVER ABILITY SO THAT'S WHAT
HIGHLIGHT COMES BUT TO SET THIS
SUMMER MAYES UNDER THE CURRENT
SYSTEM. HELLO TERRY MEMBERS DO
BENEFIT FROM A GROUP OUT UNDER
THE PROPOSED REGULATIONS THAT
ARE NOW DRAFT WORKS SET
MILITARY MEN WOULD CONTINUE TO
BE ABLE TO BENEFIT FROM THOSE
LONG AS THEY AT A LOWER RISK
ACCESS. WE'VE DONE THAT BECAUSE
IT SEEMS THOUGH IN YOUR-
TESTIMONY THAT YOU'RE MAKING
THE CASE. ALMOST AS IF. THE
INSURANCE COMPANIES ARE
DISCRIMINATING AGAINST THEM
POOR PEOPLE- BUT I DIDN'T QUITE
HEAR THAT DIRECTLY- ARE ARE YOU
SUGGESTING THAT INSURANCE
COMPANIES DON'T WANT POOR
PEOPLE TO BE TO JOIN AFFINITY
GROUPS- AND IF. THAT IF THAT'S
THE CASE WHAT WE DO TO RESOLVE
THAT THAT'S- I APPRECIATE THAT
QUESTION ASSEMBLY. TO BE CLEAR
ON. WE ARE NOT. CERTAIN THAT
INSURERS ARE INTO ITALY
DISCRIMINATING AGAINST DRIVERS.
BUT WHAT I THINK IS TELL IS
THAT THAT THE TESTIMONY I READ
TO YOU FROM WANTING FOR COMPANY
IT'S- TENDS TO DISCRIMINATE. IS
IN IT TO MAKE MONEY I MEAN IF I
WERE AN INSURER AND I DIDN'T
CARE TO MAKE MONEY I WOULDN'T
BE IN INTERPHALANGAL. AND AS
WE'VE HEARD FROM TESTIMONY.
FROM THIS INSURANCE COMPANY
CALLED CURE. HIGHER INCOME
DRIVERS OFFER A LARGER REVENUE
STREAM. SO THERE IS A PRE
ELECTION A PREFERENCE FOR
HIGHER DRIVERS THAT MAY BY MORE
PER. IT'S THAT THAT IS A BETTER
PROFITABLE INVESTMENT FROM
INSURERS PERSPECTIVE AND
PROBABLY THERE IS LESS ENERGY
FOCUSED ON POOR DRIVERS THAT
ARE AS LIKELY TO PERCH MULTIPLE
PRODUCTS. IT'S AN INTENT TO
DISCRIMINATE IT'S AN INTO SERB
TO MAKE MONEY. AND MR CHARSADDA
TWO QUESTIONS IF YOU WATCH ME
TO ASK IF THE THIRD- HOW. IS IT
TO JOIN. NITTY GROUP I
UNDERSTAND THAT A IS A IS AN
AFFINITY. IS THAT ACCURATE HOW
AND I. THE MISSION. YOUR YOUR-
HOW HARD IS IT TO JOIN RIGHT
ASSEMBLY MEMBER MAYES IT
DEPENDS UPON WHO YOU ARE HOW
ARE IT IS TO JOIN IT'S
FASCINATING BUT THE BUT THE
STATUS THE DATA THAT WE'VE
COLLECTED WHAT WE'VE LEARNED IS
PREDOMINATELY FOR THOSE WHO ARE
WEALTHIER OR MORE EDUCATED
THERE ARE MORE OPPORTUNITIES TO
END THAT FITS YOU FOR THE
DRIVERS OF OUR STATE THERE ARE
FEWER OPPORTUNITIES TO BETTER
FIND A GROUP THEY THEY DO IT
FROM THE TIME FOR EXAMPLE ONE
ESTIMATE DETAIL. BURNED NURSE
IS COSTCO MEMBERSHIP UNLIKE A
LOT OF THE GROUPS WE SEE TODAY
COSTCO MEMBERS WERE ESSENTIALLY
LEVEL ACROSS ALL THE ZIP CODE
GROUPS WHETHER IT WAS THE
POOREST DRIVERS OR THE RICHEST
DRIVERS COUPLE MEMBERSHIP AMONG
THEM. BOTH HAD A CAUGHT MESS
DISK. WERE OF ALL STRESS OBSESS.
THAT IS VERY DIFFERENT FROM
GROUPS LIKE LAWYERS DOCTORS
ENGINEERS WORK AS YOU CAN
IMAGINE THERE IS A VERY SKEWED
SEGMENT OF SOCIETY THE BENEFITS
FROM THOSE AN OVERALL OUR DATA
SHOWS. THAT THE TREND IS TOWARD
RICHER MORE EDUCATE FIBERS ARE
EXCEPTIONS. IT OF WHAT WHAT
LIKE TO ASSEMBLY MEMBER MISTER
CHAIR DALY AYE I WOULD LIKE TO
TURN IT BACK OVER TO MISTER
MARTINEZ IT AT THE PROPER TIME
BUT I'M HAPPY TO TAKE MORE
QUESTIONS. HE I THINK WE'VE
HEARD FROM QUITE A FEW
COMMITTEE MEMBERS MISTER GIBSON
WHAT WAS NEXT IN YEAH GO AHEAD
SIR THANK YOU VERY MUCH AND- I
WAS GOING TO ASK IF WE CAN
FINISH THE PRESENTATION AND ASK
QUESTIONS BUT SINCE. THAT YOUR
FAULT WHAT KEY IS TALK ABOUT
THE MARKETING PIECE TO AREAS
THAT ARE THAT ARE FACT NOT
RECEIVING. FINISH GROUP OF
DISCOUNTS THEN IF IT'S- IS YEAH
ONCE TALK ABOUT THAT THAT I
WANT TO ASK MY NEXT QUESTION IS
WHAT OTHER STATES DOING. TO
HAVE THIS AT THIS ISSUE. IF YOU
WANT GET. THE MORE. TO SPEAK TO
THAT FOR THE WAY YOU KNOW THIS
IS THERE ARE EIGHT YOU I'M SURE
YOU'LL HAVE AN OPPORTUNITY TO
HEAR FROM INSURERS WHO CAN
SPEAK TO WALK BY AND HOW THIS
PROCESS WORKS BUT IN COMMENTS
WE RECEIVE PEAKING WITH COPIES
AS WE'VE MET WITH MANY
COMPANIES AND INSURERS AND
CONSUMER GROUPS. THEY TELL US
IS THAT THERE ARE BENEFITS TO
HAVING A MARKET EXCLUSIVE
MARKETING RELATIONSHIP BETWEEN
AN INSURER IN A PARTICULAR
GROUP I'M NOT GONNA NAME ANY
PARTICULAR INSURER OR ANY
PARTICULAR GROUP BUT CAN JUST
GEN A GROUP OF AN ASIAN. THAT
MIGHT HAVE TO FIT WITH THE COME
BY HAVING ANY ARRANGEMENT
WHEREBY THE GROUP PEOPLE GET
DISCOUNT ANY TURNED GET A LIVE
OF ALL OF NUMBER SHIP THAT THEY
FOR OTHER MARKETING SO. THIS IS
THROUGH THE DISCIPLINE GET. YOU
SEE THIS THIS TYPE RELATIONSHIP
ISN'T ABOUT SAFE DRIVING WERE
RISKY DRIVING THIS TYPE OF
RELATIONSHIP IS A BUSINESS
RELATIONSHIP AND IT'S ABOUT
IT'S ABOUT INFORMATION. SO FROM
A MARKETING PERSPECTIVE THAT IS
CERTAINLY AN ELEMENT OF HOUSE
SOME AFFINITY GROUPS ARE
ESTABLISHED THAT THE INSURER IN
THE ORGANIZATION SEE A MUTUALLY
FINANCIALLY BENEFICIAL
RELATIONSHIP TO ESTABLISHING OR
PERFORM THAT GROUP. AND I'VE
ALREADY LOST THE SICK PART OF
YOUR QUESTION WHERE WERE THE
OTHER STATES DOING THANK YOU TO
ADDRESS THIS YES SO OTHER
STATES THIS IS THIS IS ALSO A
FASCINATING SUBJECT ASSEMBLY
MEMBER GIPSON. AS NOT TO
DIGRESS TO BUT JUST LIKE WHEN
YOU A REAL OF SCHOOL FOR AUTO
INSURANCE. THE STATE HAVE
ALLOWED AT SCHOOL. AND WHAT WE
HAVE SEEN IS A FASCINATING
TREND IN RECENT YEARS BOTH
REFER TO REGARD THE CREDIT
SCORE AND ALSO WITH REGARD TO
AFFINITY GROUPS AND WHAT WE
HAVE SEEN. IS WHAT WE TALK
ABOUT CREDIT SCORE MANY STATES
HAVE NOW BEEN A BUYER'S
REMORSE. THEY REGRET EVER
ALLOWING CREDIT SCORE INTO
THEIR MARKETS WHY BECAUSE
THEY'VE SEEN THE SOCIOECONOMIC
DISCRIMINATORY IMPACT ON THEIR
STATE. THAT THEY'RE CONCERNED
ABOUT. THE SEEN THE SAME THING
WITH AFFINITY GROUPS THE
RATIONAL HEARING THAT REFERENCE
EARLIER TODAY THAT JUST
HAPPENED LAST WEEK IT IS
EXACTLY UP. H. BUT- OF THE
ACTUAL. IT WAS DRIVERS OF
DISCRIMINATION AND EXAMINATION
OF UNFAIR PREMIUMS PRACTICES
AND POLICIES IN THE AUTO
INSURANCE INDUSTRY. SO WHAT
WE'VE SEEN IS THERE ARE A
NUMBER OF STATES IN VERY RECENT
YEARS JUST LAST YEAR MICHIGAN
PASSED SB ONE THAT'S JUST
THAT'S A THAT'S THE STATE. NOW
HAS A LAW THAT BANS USE OF
EDUCATION OCCUPATION AND GENDER
AMONG OTHER THINGS WHEN RATING
FOR INSURANCE THAT LAW WILL
TAKE EFFECT IN JULY. VERMONT IS
THAT THAT THAT WOULD PUSH AGAIN
MICHIGAN OF VERMONT IS ANOTHER
EXAMPLE BILL ONE. YEAH YEAH YES
FOR MICHIGAN THAT WAS SENATE
ONE IN TWENTY NINETEEN THAT
PASSED IT WILL TAKE AFFECTING A
LOT. HERE VERMONT IS ANOTHER
EXAMPLE OF A STATE THAT SAW
HIGH CORRELATION BETWEEN LOWER
HOUSEHOLD INCOMES AND HIGHER
RATING FACTORS AND NAY BANDIT
AND SAID THIS IS AGAINST PUBLIC
POLICY GETS UNFAIRLY
DISCRIMINATORY FROM WHAT THE-
MASSACHUSETTS. SIMILARLY BANS
THE USE OF EDUCATION AND
OCCUPATION. NEW YORK ADOPTED A
REGULATION AND TWENTY EIGHTEEN
THAT SAYS. YOU KNOW SHOW US THE
DATA WE WILL ALLOW AFFINITY
GROUPS YOU CAN SHOW US THAT
YOU'RE NOT DISCRIMINATORY THAT
THERE IS A TRUE RELATION TO
RISK OF LOSS. BUT UNTIL YOU DO
THAT YOU CAN'T USE IT IN OUR
STATE. AND SO TO MY KNOWLEDGE
THERE IS NO ENSURE OR THAT HAS
RECEIVED APPROVAL FROM THE NEW
YORK DEPARTMENT OF FINANCIAL
SERVICES TO ALL GROUPS IN THEIR
STAY BASED UPON WHAT YOU.
CONSIDER EXAMPLES OF STATE OF
THE NOTHING WORKED CHICAGO DO
BOARD. AGES SIX. DETROIT AGAIN
OF WAIT WHAT BE AFFECT BY THE
SB ONE. TO DETROIT AND DETROIT
IS A STATE IS A TOWN THAT HAS-
OBSERVE SOME VERY. BIG CONCERNS
ABOUT THE PRICE OF AUTO
INSURANCE AND EXACTLY HOW THOSE
PRICES ARE LEVIED ACROSS THE
STATE. SO WHAT IS AN EXAMPLE OF
A CITY THAT IS GOING TO LIKELY
BENEFIT FROM THEIR CHANGE IN
POLICY IN THE LAW ADOPTED.
CHICAGO TO MY KNOWLEDGE I I'M
THE EXHAUSTIVE STUDY BUT TO MY
KNOWLEDGE CHICAGO DOES NOT HAVE
A SIMILAR LAW. THANK YOU.
MISTER MARTINEZ TO RIP UP
BECAUSE A WE HAVE A FEW OTHER
PANELS HERE OF COURSE OF
COURSE. NO JUST IN CLOSING AND
CLEARLY MEAN- MY COLLEAGUE
MISTER HENLEY HE'S BEEN THE
LEAD. ON THIS FOR THE LAST
SEVERAL MONTHS AND HAS BEEN
THAT THE DEPARTMENT OF
INSURANCE FOR. NEARLY TWENTY
YEARS AND KNOWS THE SENATE AND
WITH PASSION SO. I WANT TO MAKE
SURE THAT. WITH ME. ADD TO HELP
ANSWER YOUR QUESTIONS AND IN
CLOSING JUST KNOW THAT I MEAN
COMMISSIONER LOT OF WHEN HE WAS
SWORN INTO OFFICE. SHE HE TOOK
THAT OATH TO UPHOLD THE VOTERS.
VOTERS PRINCIPLES OF TOP OF
PROP ONE OF THREE. THAT THE
COMMISSIONER GUARD AGAINST
UNFAIR- JUST TORE INSURANCE
PRACTICES AND- PRODUCTS MUST BE
FAIR AVAILABLE IN FULL FOR ALL
CALIFORNIANS. HE REALLY TAKES
SERIOUSLY THE ROLE. IS KNOW. AS
AS THIS CONVERSATION CONTINUES
THIS IS IT. A THIS IS A
CONVERSATION THAT WE HAVE MET
WITH WITH INDUSTRY WE HAVE MET
WITH INTERESTED STAKEHOLDERS WE
WILL CONSISTENT WITH. THREE
BROKEN. TO ME TO ASSIST
THERE'S- A GARDEN SINISTER TO
JUST PLEASE IN AND ARE ARE. IS
AND BELIEVE ME AGAIN LIKE THAT-
THAT PEOPLE HAVE. THE AND WE DO
OUR WILL BE MEETING WITH THEM.
BECAUSE IT'S IN A PORSCHE
SPORTS INITIATIVE AND WHICH IS
WHY WE'RE DOING THIS EXTENSIVE
FAQ FIND. AND DATA COLLECTION.
EFFORT TO GET THE FACTS AND-
CONSIDER THE COMMISSIONERS
COURT. HERE PRESERVED AFFINITY
GROUPS FOR MAKING SURE THAT
SICK DRIVERS AND ALL SO SU
ACTED ECONOMIC CLASSES.
REGARDLESS OF EDUCATION LEVEL
BENEFIT EVENLY FROM THESE
AFFINITY GROUP DISCOUNTS IN
ORDER TO RECEIVE MORE
AFFORDABLE CAR INSURANCE. SO
THANK YOU AGAIN FOR THE
INDUSTRY HERE NO MISTER CHAN
HAS A QUICK QUESTION BEFORE YOU
DEPART MISTER MARTINEZ GO AHEAD
MR CHEN. IN BRIEF AS POSSIBLE
THANK YOU SO MUCH FOR
PRESENTATION I DO APPRECIATE
THAT- YOU MENTION PROP. ONE OH
THREE BUT AS I UNDERSTAND IT IF
YOU FOR THE LETTER OF THE LAW
PROPOSITION ONE OH THREE IT
DOES STATE THAT DISK CAN BE
GIVEN BROADLY AND GIVEN WITHOUT
RESTRICTION. SO INSTEAD OF
CHOOSING WHEN I FIRST WINNERS
AND LOSERS WHY NOT FOLLOW THE
LETTER OF THE LAW. PLEASE THANK
YOU ASSEMBLY MEMBER CHEN THAT'S
IT THAT'S AN IMPORTANT QUESTION
AND- I THINK THIS BODY WOULD
LIKELY AGREE WITH ME THAT.
BETWEEN WRITING A LAW IN THIS
BUILDING AND WRITING AN
INITIATIVE. THERE IS MUCH
CLEARER WORDING USUAL COMING
OUT OF THIS BUILDING BEEN
INITIATIVE MEASURES ANDSO. THE
REASON I MENTION THIS. IS DEREK
KEATING PROVISION WITHIN
PROPOSITION ONE OH THREE AND
THIS IS A CHALLENGE WE OBSERVE
TIME AND AGAIN. IS HERE
SPECIFICALLY WITH REGARD TO
AFFINITY GROUPS WE HAVE
MULTIPLE COMPETING FOR JONES.
ONE WE HAVE A- SET. THE YOU
GROUP. IS ALLOWED CALIFORNIA
PROP THREE THROUGHOUT REGARD TO
ALL PATIENTS SO THEY CAN BE
USED THAT'S ONE STATUTE THERE'S
ANOTHER STATUTES SPECIFIC AUTO
INSURANCE BUT SAYS
NOTWITHSTANDING. ANY OTHER
PROVISION OF LAW. THE ONLY
RATING FACTORS YOU SHALL USE
INSURERS IN THIS STATE THE
THREE MANDATORY FACTORS IN ANY
OPTIONAL FACTORS OF THE
COMMISSION USES. THAT'S HOW YOU
RATE INSURANCE IN THE STATE NO
MORE OR LESS AS A COMPETING
PROVISION WITH THE GROUP
PROVISIONS. AND LASTLY BE
REMISS IF I DIDN'T GEN THAT
PROPER THREE SAYS RATES SHALL
NOT BE UNFAIRLY DISCRIMINATORY
IT SPECIFICALLY REFERENCES THE
UNRUH CIVIL RIGHTS ACT IN
ADDITION TO THE UNFAIR
DISCRIMINATION. **** ALL OF
THESE PROVISIONS COMPETE AND
THIS COMMISSIONER IS LOOKING AT
HOW TO RECONCILE WAS A BIG BASS
AND OF FAIR AVAIL. PORTABLE FOR
ALL CALIFORNIA. THANK YOU A
RESPONSE ONE. QUESTION ON YOU
SAID EARLIER ON THAT IT SOUNDS
LIKE THERE IS THIS- PERCEPTION
THAT AT LEAST EXACT IS BENEFIT
FROM THESE DISCOUNTS AT LEAST
IN MY DISTRICT I AM GETTING
SOME CALLS FROM SECRETARY IS
FROM FROM EMTS THAT THE ALSO
BENEFIT FROM THE DISCOUNT AS
PART OF THEIR BUDGET IN TERMS
OF HOW THEY FINANCE THEIR
LIVELIHOOD- I UNDERSTAND THAT-
EARLY ON A JANITORS GARDENERS
WILL NOT BE ABLE FIT. ONLY BUT
INSTEAD. ALIEN SOME. SWATH OF
INDIVIDUALS THAT BENNETT FROM
THROUGH THE DISCOUNTS WHY NOT
CREATE- OF A CURRENT POLICY IN
WHICH- THIS FOLKS THAT YOU
STATED CORNERS JENNER'S
COMPANION FROM THE DISCOUNTS ON
ALIENATED FROM THE INDIVIDUALS
CURRENTLY THAT ALSO BENEFIT
FROM THESE GROUP DISCOUNTS.
THANK YOU ASSEMBLY MEMBER CHAD
IT'S AN IMPORTANT QUESTION AND
I WILL TELL YOU THAT WE HAVE
LOOKED AT THIS ISSUE AND WE
WILL CONTINUE TO LOOK AT THIS
ISSUE AS WE HAVE THE DRAFT
WORKSHOP THAT WE'RE REVIEWING
REVIEWING THE COMMENTS WE
RECEIVED ON THE STRAP BUT THE
FIRST STEP. THE MULTI STEP
PROCESS FOR DOING A ROOMMATE.
ARE LOOKING AT HOW DO WE DO
THAT IN A WAY THAT MAKES
GROUP'S GOAL. ALL SO SIT BACK
CLASS. I WOULD SAY THAT EXPAND.
WILL NEARLY WITHOUT RESTRICTION.
THAT'S WHAT WE HAVE TODAY. AND
THE DATA SHOWS THAT DOESN'T
WORK WE NEED SOMETHING
DIFFERENT AND WE CONTINUE TO
LOOK AT HOW WE CAN MAKE THAT
DIFFERENT PROCESS THAT MAKE
SURE THE GROUP DISCOUNTS CAN
EXIST. BUT THEY'LL EXIST IN A
WAY THAT IS UNFAIRLY
DISCRIMINATORY THAT IS NOT.
UNFAIRLY DISCRIMINATORY. ALL
RIGHT ANYTHING ELSE MISTER
MARTINEZ SIR MISTER HENLEY
THANK YOU SO MUCH VERY OAK. MR
VOEPEL HAS QUESTIONS. SORRY ONE
TO MAKE SURE THAT I HEARD THIS
CORRECTLY- WITHIN YOUR DATA AND
YOUR ANALYSIS. I THANK YOU SAID
YOU DID NOT HAVE CLAIMS
EXPERIENCE IS THAT CORRECT THAT
IS CORRECT WITHIN THAT MAKES
EVERYTHING YOU'RE DOING-
COMPLETELY USELESS BECAUSE
WITHOUT CLAIMS EXPERIENCE YOU
DON'T KNOW MUCH AFFINITY GROUP
IS HIGH CLAIMS LOCAL NEWS
WHATEVER. THE LOW INCOME PEOPLE
YOU DON'T KNOW IF THEY'RE HIGH
CLAIMS ARE LOW CLAIMS AT CLAIMS
IS EVERYTHING BECAUSE YOU'RE
NOT GONNA HAVE A KERRIER TAKE
ON AN AFFINITY GROUP. WHEN
THERE'S HIGH CLAIMS IN A NOTE
BUT RISK- I. GREATLY QUESTION
YOUR YOUR ANALYSIS BECAUSE YOUR
LONG YOU'RE LIKE DOING ONE HALF
OF THE EQUALS MC SQUARED YOU'RE
LEAVING OUT HALF THE EQUIPPED.
THAT COMMENT QUESTION THANK YOU
I APPRECIATE THE COMMENT
ASSEMBLY MEMBER VOEPEL IF I
COULD RESPOND TO IT RIGHTLY
THREE THREE THREE I WOULD
RESPECTFULLY DISAGREE THAT OUR
STUDY IS MEANINGLESS BUT I
WOULD ALSO EMPHASIZE THAT FROM
MAY TILL NOW MADE. HERE AND FOR
MULTI WE HAVE AT SHOW US HOW TO
SAY POR DRIVE. LESS EDUCATED
DRIVERS ARE NOT SAFE SHOWS THE
DATA AND THEN LET'S TALK NO ONE
HAS SHOWN IS THAT DATA TO.
THANK YOU ALL VERY MUCH THANK
YOU AGAIN MISTER MARTINEZ TO
MISTER HENLEY. OUR NEXT PANEL.
OUR REPRESENTATIVES OR MEMBERS
OF AFFINITY GROUPS- WE HAVE
VICKI ROBBERS WHO'S THE MEMBER
BENEFITS MANAGER FOR THE
CALIFORNIA TEACHERS ASSOCIATION.
ANNE BUT WHEN LOMBARD- FROM THE
BLACK CHAMBER OF COMMERCE
PLEASE COME FORWARD IN. WE
APPRECIATE YOUR ATTENDANCE
TODAY YOUR PARTICIPATION WE
APPRECIATE THAT AND MISTER
MISTER CHAIR MYSELF MISTER GIVE
SOMEONE TO BE IN THE BALL
HEADED AFFINITY GROUP. FOR BALD
HEADED MEN. WE NEED HELP WE'VE
GOT THREE HERE. AND WE'RE
WORKING ON IT. YOU KNOW I THINK
I'LL BE JOINING. SOONER THAN
I'D LIKE. AT GOOD GOOD WELCOME
TO BOTH OF YOU OF WOULD ONE OF
YOU WERE. MISS ROGERS IS LIVE
FIRST ON THE AGENDA WANT YOU GO
AHEAD MISS ROGERS OKAY THANK
YOU MY NAME IS ROGERS I'M THE
ASSISTANT MANAGER OF MEMBER
BENEFITS FOR THE CALIFORNIA.
ASSOCIATION THIS IS MY FIRST
TIME ACTUALLY IN THE STATE
BUILDING I'M SPEAKING
APPRENTICE LATER SO THANK YOU
FOR THE OPPORTUNITY. I'M HERE
TODAY TO SHARE INSIGHT FROM THE
MEMBER BENEFITS PERSPECTIVE.
THE MAIN GOAL OF CTA MEMBER
BENEFITS IS TO PROVIDE CJ
MEMBERS WITH QUALITY MEMBER
BENEFIT PROGRAMS THAT ARE BOTH
COMPETITIVE. AND UNIQUE TO THE
SPECIFIC NEEDS OF OUR
MEMBERSHIP. AND NOT ONLY DO
REQUIRE THAT OUR VENDOR
PARTNERS PROVIDE THOSE QUALITY
PRODUCTS AT COMPETITIVE RATES
BUT WE ALSO EXPECT SUPERIOR
CUSTOMER SERVICE AND FOR ALL
MEMBERS TO BE TREATED EQUALLY
AND FAIRLY. SO THIS EXPECT
RELATES TO OUR ENTIRE DIVERSE
MEMBERSHIP. I'M REFERRING TO A
GROUP OF OVER THREE HUNDRED
THOUSAND MEMBERS. MORE THAN OF
OUR MEMBERS ARE FEMALE. FORTY
OF OUR MEMBERSHIP IS BETWEEN
AGES OF THIRTY AND FIFTY NINE
BUT WE ALSO HAVE A VERY WIDE
RANGE OF AGE GROUPS AS WELL
FROM THOSE IN THEIR EARLY
TWENTY. IN ORDER HEARING
RETIREMENT. OUR MEMBERS ARE
FULL TIME THE KID EDUCATORS BUT
WE ALSO ARE PROUD TO HAVE
MEMBERS WHO ARE PART TIME
EDUCATORS COMMUNITY COLLEGE
MEMBERS. AND EDUCATION SUPPORT
PROFESSIONALS WHO DRIVE THE
BUSES PREPARE THE MEALS THE
NURSES WERE FIXING THIS GREAT
NEEDS IN THE GROUND THE
MAINTENANCE STAFF THE
CUSTODIANS PARA PROFESSIONALS
OFFICE WORKERS. THAT ENTIRE. A
MEMBER BENEFITS MAY PLAY A
DIFFERENT ROLE IN ALL OF OUR
MEMBERS LIVES BUT IT HAD IT IN.
EACH NEVER THE LESS A LOT OF
OUR MEMBERS ARE LIVING PAYCHECK
TO PAYCHECK AND RELY ON OUR
MEMBER BENEFIT PROGRAMS FROM
HELPING THEM WITH THEIR
DISCOUNTED OUR DAILY LIVES. OR
IN LONG AND SHORT TERM
INSURANCE NEEDS. I'M ARE
FORTUNATE TO NOT IT REALLY NEED
THE DISCOUNTS BUT APPRECIATE
THE EXCLUSIVITY COMPONENT. ANY
UNIT CALLED SWEEP THROUGHOUT
THE PROGRAMS THAT THEY ALL AN
ENJOY BY THE LONGING TO A LARGE
ASSOCIATION LIKE CTA. NO MATTER
WHAT THE NEEDS ARE THEY ALL
HAVE THE SAME EXPECTATION AND
THAT'S TRUSTING THAT CTA HAS
VETTED. THE PARTNERS WE DOORS.
BEING A MEMBERSHIP ASSOCIATION
OUR MEMBERS TRUST IS VERY
IMPORTANT TO US AND THEREFORE
THE SUSTAINABILITY OF THE
PROGRAMS WE ENDORSE IS ONE OF
OUR MAIN GOALS. GAINING CJ
ENDORSEMENT IS NOT AN EASY TASK
AND WHEN THEY CAN TAKE ACTUALLY
YEARS TO DEVELOP. ENDORSED
PARTNERS ARE HELD ACCOUNTABLE
TO A SET OF HIGH STANDARDS THAT
ARE UNIQUE AND UNLIKE ANY OTHER
INSURANCE PROGRAMS ARE MEMBERS
CAN PURCHASE. OUR STANDARDS OF
SERVICE AND UNIQUE PROGRAM
ATTRIBUTES ALONG WITH THE
HEALTH AND SUSTAINABILITY OF
OUR PROGRAMS ARE SO IMPORTANT
TO US THAT THEY'RE WRITTEN IN
OUR CJ BYLAWS. AND THEIR
CONTINUOUSLY MONITORED AND
EVALUATED TO ENSURE THAT THEY
MAINTAIN THE CRITERIA
ESTABLISHED TO BE CONSIDERED A
C. K. INDOORS PART. OUR MEMBERS
BENEFIT PROGRAMS ARE PART OF
OUR VALUE PROP. AND ARE
ENDORSED PARTNERS ASSIST US
WITH OUR MEMBERSHIP ENGAGEMENT
AND RETENTION EFFORTS. CJ
ENDORSEMENT IS NOT JUST LIKE
ANY OTHER BUSINESS RELATIONSHIP
WE DO STRIVE TO DEVELOP LONG
TERM PARTNERSHIPS FOR EXAMPLE
OUR CJ ENDORSED PARTNER
PROVIDING OUR AUTO AND HOME
INSURANCE NEEDS CAL CASUALTY.
IN OUR FOR ALMOST SEVENTY IS
NOW. HAVE A PROVEN TRACK RECORD
OF BEING THERE FOR OUR MEMBERS
AND THEIR GREATEST TIME OF NEED
WE RESPECT CALIFORNIA
CASUALTIES COMMITMENT TO
PROVIDE QUALITY SERVICE. AND
OFFER COMPETITIVE RATES TO THE
PUBLIC EMPLOYEE UNIONS THAT
LOOK AFTER THE INTERESTS OF THE
HEROES IN OUR COMMUNITIES IN
CALIFORNIA. BEING OUR PARTNER
FOR SEVENTY YEARS THEY
UNDERSTAND THEIR SENSITIVE TO
AND RESPECTFUL TO OUR C
CULTURE AND THIS UNDERSTANDING
OF OUR CJ MEMBERSHIP HAS HELPED
OUR PROGRAM EVOLVED INTO THE
UNIQUE COVERS THAT OFFERS OUR
MEMBERS TODAY. CALIFORNIA IS
HEREBY SPUR BYLAWS AS THEY DO
NOT DIFFERENTIATE BETWEEN
MEMBERS JOB CLASSIFICATIONS
THEY PROVIDE THE SAME COVERAGE
TO OUR K. THROUGH TWELVE
CLASSROOM IT. TEARS COMMUNITY
COLLEGE EDUCATORS AND TERRY
WORKERS. THE ASSISTANT OUR
VALUE PROPOSITION EXCLUSIVITY
MODEL BY ENSURING THAT THEY ARE
PROVIDING THE CJ RATE. TO THE
ACTIVE IN VERIFIED MEMBERS OF
OUR ASSOCIATION. THEREFORE WE
CANNOT SUPPORT ANYTHING THAT
COULD POTENTIALLY IMPAIR OR
IMPACT OUR MEMBERS BEST
INTEREST OR ARE INDOORS
PARTNERS ABILITY TO REMAIN
COMPETITIVE. CJ IS NOT IN
RELATION THAT REQUIRES THE
CONFIDENTIAL CONTRACTS BETWEEN
TGA CALIFORNIA CASUALTY BE MADE
AVAILABLE FOR PUBLIC INSPECTION
THE BUSINESS AGREEMENT WE
ENTERED TO UNDER CONFIDENTIAL
TERMS. NOT CONFIDENTIAL AND
PRIVATE. FURTHER CJ IS NOT IN
FAVOR OF A DRAFT REGULATION
THAT COULD IMPOSE NEW FILING
AND DATE PORTING REQUIREMENTS
UPON INSURERS. WE ARE CONCERNED
THAT THESE NEW REQUIREMENTS
COULD ADD TO THE OVERALL COST
OF OFFERING A LEGIT PROGRAM
LIKE OURS. ULTIMATE LEAD TO
HIGHER PRE OWNS OUR MEMBERS.
ARE YOU CTA TO PROTECT AND
PROMOTE THE WELL BEING OF OUR
MEMBERS. AND THAT MEANS
MAINTAINING OUR LOW PROVIDING
ARE HARD WORKING SEATED MEMBERS
WITH QUALITY UNIQUE MEMBER
BENEFIT PROGRAMS AND AT A
COMPETITIVE RATE AND ENSURING
THAT ALL OF OUR MEMBERS ARE
BEING TREATED. EQUALLY AND
FAIRLY. THANK YOU SO SHIP
COMMITTEE MEMBERS ARE THERE ANY
QUESTIONS. FOR THE
REPRESENTATIVE FROM CTA. ALL
RIGHT WITH. YOU COVERED IT THAT
WAS VERY CLEAR THANK YOU VERY
VERY MUCH NOW WE'LL TURN TO A
MISTER LUMBAR FROM THE BLACK
CHAMBER OF COMMERCE WELCOME
THERE THANK YOU. MY NAME'S AT
MODEL NUMBER FROM THE
PRESIDENCY OF THE CALIFORNIA
BLACK CHAMBER OF COMMERCE WE
HAD SOME- INFORMATION PASSED UP
TO YOU ALL THEIR LETTERS OF
SUPPORT ALL OPPOSITE GEN OF
NUMBER OF ORGANIZATIONS. THE
OPPORTUNITY TO SHARE OUR GRAVE
CONCERNS ABOUT THE PROPOSED
REGULATORY CHANGES TO INSURANCE
AFFINITY PROGRAMS AS YOU MAY
KNOW I HAVE TESTIFIED TWICE
BEFORE THE DEPARTMENT OF
INSURANCE ON THIS ISSUE TO ONLY
HAVE THE CONCERNS OF LOW INCOME
MINORITY COMMUNITIES IGNORED.
ONCE AGAIN IS OR ARE BEING
PUSHED ASIDE OVER IT ISSUE THAT
IMPACT THE FINANCIAL WELL BEING
OF OUR FAMILIES. THE BOOK OF
CALIFORNIA'S WORK FORCE IS NON
UNION. AND WHILE CURRENTLY
ELIGIBLE FOR SOME OCCUPATIONAL
GROUP DISCOUNTS THE PROPOSED
REGULATION WOULD FORCE ON
REASONABLE AND COSTLY
REQUIREMENTS ON THEM TO JOIN IT
EVEN. BY GROUP MEMBER. NOT
EVERYONE CAN AFFORD A UNION. OR
AFFILIATED GROUP MEMBERSHIP. AS
A RESULT DISCOUNTS EARNED BY
HARD WORKING FAMILIES WOULD
CEASE TO EXIST. WITH THESE
REQUIREMENTS. IF THE OPEN IF
THE OPTION TO PURCHASE COST
EFFECTIVE INSURANCE THROUGH
AFFINITY GROUPS IS REMOVE THE
MEN AND WOMEN THAT WE REPRESENT
WILL BE THE FIRST TO FEEL THE
EFFECTS. AN INCREASE IN THE
COST AN AUTO INSURANCE TO THIS
MAGNITUDE MAY FORCE ARE SMALL
BUSINESS OWNERS CHAMBER MEMBERS
AND OTHER RESIDENTS TO MAKE
TOUGH CHOICES WHEN PLANNING
THEIR YEARLY BUDGETS. PUTTING
THEMSELVES AND THEIR FAMILIES
AT RISK. AS YOU KNOW MOST OF
OUR OF COMMUNITY. WORK VERY
SMALL MARGINS SO ANY CHANGE AND
A DISCOUNT DOES GIVE IT TO THEM
WE'LL HAVE IT AN INCREDIBLE
AFFECT ON HOW THEY DO THINGS.
IT IS OUR HOPE THAT YOU AND
YOUR STAFF WILL CONSIDER THESE
CONCESSIONS TO ENSURE. NOT
AFFECTED. ALLOW FOR ON
AFFILIATED GROUPS TO BE CREATED
AND EASILY VERIFIED BY THE
DEPARTMENT SO THAT SMALL
BUSINESSES COMMUNITY GROUPS AND
LOW INCOME POPULATIONS CAN
OBTAIN DISCOUNTS WITHOUT
BURDENSOME FILING REQUIREMENTS.
THE GOAL WAS TO MAKE ACCESS TO
THESE DISCOUNTS EASIER. PUTTING
MORE RESTRICTIONS IN PLACE JUST
LIMITS WHO CAN HAVE THESE
DISCOUNTS. ELIMINATE THE
DISCRIMINATORY REQUIREMENTS OF
DUES AN ANNUAL MEMBERSHIP.
REQUIRE COMPANIES TO VERIFY
THAT THEY HAVE IN PLACE A
PROCESS TO VERIFY MEMBERSHIP.
THE DEPARTMENT COULD HELP
CONSUMERS LEARN HOW TO USE AND
SET UP GROUPS AND HOW TO WORK
WITH INSURERS. THE DEPARTMENT
SHOULD AND CREATE REASONABLE
CRITERIA TO ENSURE THAT MEMBERS
OF GROUPS HAVE SOME COMMON
CHARACTERISTICS MAKE IT SIMPLE
AND EASY FOR MEMBERSHIP GROUPS
LIKE OURS TO VALIDATE THEIR
AUTHENTICATION. MR GIPSON YOU
ASKED ABOUT MARKETING AND HOW
AE COMMUNITIES CAN FIND OUT
ABOUT THESE AFFINITY GROUPS
WILL. IF THE IF PART IT WOULD
TAKE IT UPON THEMSELVES TO PASS
THIS INFORMATION ALONG THAT
WOULD SATISFY YOUR YOUR YOUR AT
YOUR QUESTION I DON'T THINK IT
WAS ANSWERED PROPERLY WHEN YOU.
GAVE IT OUT EARLIER WITHDRAW
THE PROVISION AROUND SHARING
PRIVATE AND CONFIDENTIAL DATA
WITH THE STATE. NOT WE WILL
FORCE COMPANIES TO WITHDRAW
THEIR PROGRAMS BUT POTENTIALLY
WILL FORCE PRIVACY BREACHES AND
REYES DATA BEING USED FOR
ILLICIT EFFORTS AND WE'VE SEEN
QUITE A BIT OF THAT HAPPENING
IN SOCIETY TODAY. MISTER
CHAIRMAN MEMBER COMMITTEE WE
NEED YOUR HELP TO MAKE THIS
RIGHT. BY PROTECTING THOSE IN
THE STATE THAT DO NOT HAVE A
VOICE. THAT ARE SO OFTEN OUT IN
BY OVERZEALOUS STATE REGULATORS.
WE STAND READY TO WORK WITH THE
DEPARTMENT AND THIS COMMITTEE
TO HELP MAKE THIS RIGHT. THANK
YOU THANK YOU MISTER LOMBARD-
IN AGAIN VERY CLEARLY STATED
AND WE APPRECIATE THE POINTS
THAT YOU'RE MAKING. MR COOLEY I
THINK WOULD LIKE TO COMMENT AT
THIS POINT REGARDING THE
CONSUMER PERSPECTIVE GO AHEAD
RIGHT. WANT TO SAY I LOOK AT
THIS ISSUE AND YOUR STAKE IN
AND I THINK YOU'VE EXPRESSED
YOUR STATE THIS IDEA THAT THERE
ARE DISCOUNTS THAT THE PUBLIC
IS ENJOYED THAT YOU SEE AT RISK.
THANKS AS A MEMBER WILL TRY
JUST FEEL OUR JOB IS TO STICK
TO THE LAW. AND I WANT TO NOTE
ARE. SINCE. EIGHTEEN SEVENTY
FOUR CALIFORNIA LAW HAS BEEN
CLEAR THAT THE JOB INSURANCE
COMMISSIONER THIS IS TWELVE
NINE TWENTY ONE INSURANCE CODE
IS TO ADMINISTER THE LAW. THE
TEST BUT WE HEARD FROM THE
DEPARTMENT SERVICE WAS OTHER
STATES HAVE DIFFERENT RULES BY
ADOPTING NEW LAW. WE HAVE THIS
PROVISION. THAT I THINK
SUPPORTS YOUR POSITION THE
INTERESTED CONSUMERS THE FACT
THE PEOPLE NOW FOR THREE
DECADES OF ENJOY DISCOUNTS. OF
THAT SAYS ANY INSURER MAY ISSUE
ANY INSURANCE COVERAGE ON A
GROUP PLAN. WITHOUT
RESTRICTIONS THE GROUP
OCCUPATIONAL TYPE OF GROUP.
GROUP INSURANCE RATES SHOPPING
CENTER BEEN FAIRLY DISCOVERED
FOR IF YOUR AVERAGE BROADLY SO
I THINK THE QUESTION THAT WE
COME BACK TO IS THE LEGISLATURE
ON BEHALF OF CONSUMERS IS. OUR
SYSTEM PERRANCE WOULD LIKE TO
HAVE. IS IT ACCORDING TO LAW
UNDER THIS PROVISION. AND IT
WAS NOT ACCORDING TO LAW THEY
DON'T HAVE THE- ABILITY TO
FREELANCE THEY HAVE TO ABIDE
WITH THE LAW. AND ALSO SINCE
EIGHTEEN SEVENTIES CALIFORNIA
LAW HAS SAID. OF STATUTES
PARTICULAR EXPRESSIONS WHICH IS
WHAT EIGHTY SIX ONE POINT
TWELVE IS PARTICULAR FIRST LAW
SPECIFIC EXPRESSIONS. QUALIFY
THOSE RICHARD GENERAL. SO WE
HAVE THIS CAN OF CONSTRUCTION
SAYS YOU GO FOR THE SPECIFIC.
AND THAT TRUMPS THE GENERAL ARE.
AND IN THE SAME WAY HEY. YOU
KNOW THE COURTS HAVE SAID
GENERALLY STATUTES HAVE A
SPECIAL APPLICATION CONTROL
GENERAL ONE WITHOUT REGARD TO
DATE OF PASSAGE. A SPECIAL
STATUTE DEALERS EXPRESSED WITH
A PARTICULAR SOBRE CONTROLS
TAKE PART OF A GENERAL STATUTE
SO. I JUST WANT TO SAY ON
BEHALF OF CONSUMERS. I FEEL WE
HAVE AN INSURANCE COMMISSIONER
WHOSE BOUNDARY IT HERE TO THE
LAW. LOS QUITE CLEAR IN THE
AREA THESE GROUPS. AND SO I
THINK THE CONVERSATION IN THE
CASE FOR CHANGE. NEEDS TO COME
BACK TO THE LEGISLATURE SO
ISSUES. FOR EXAMPLE OF CLAIMS
EXPERIENCE. DID THE UP. ALL OF
THESE THINGS EFFECTS BECAUSE
RICHARD BE CONSIDERED. ARMED
BUT BUT TO ME. CONSIDER WE HAVE
HEARD. BENEFITING FROM THESE
AND THAT WAS A FUNDAMENTAL
PURPOSE OF PROP ONE OF THREE IN
ITS PURPOSE STATEMENT TO
PROMOTE COMPETITION TO THE
BENEFIT OF CONSUMERS SO I
HAVEN'T HEARD HOW THIS APPROACH
IS VIOLATED WITH THE PURPOSE OF%
PROBLEM THREE BUT AGAIN THE
CONSCIOUS ASK ABOUT COLLECTIONS
THE CHURCH IS A STATE PROGRAM.
YEAH MR COOLEY THANK YOU FOR
THE FOR THE- HELPFUL BUT
HISTORY LESSON AND- TO
HIGHLIGHT SOME OF THE POINTS
THAT MR LOMBARDO MADE ANDA AND
MISS ROGERS THANK YOU VERY VERY
MUCH FOR YOUR FOR YOUR
PRESENTATION IS VERY HELPFUL.
THANK YOU FOR THE COMMITTEE.
AND THE LAST PANEL FOR THE
HEARING TODAY. OUR STAKEHOLDER
PERSPECTIVES MR REX FRAZIER ON
BEHALF OF THE PERSONAL
INSURANCE FEDERATION AND CHUNK
CHUCK MUNSON FROM CALIFORNIA
CASUALTY. CALIFORNIA CASUALTY
WAS MENTIONED AS THE- A PARTNER
OF THE CALIFORNIA TEACHERS
ASSOCIATION FOR INSURANCE
PURPOSES SO WHAT PLEASE GO
AHEAD MR FRAZIER THANK YOU
MISTER CHAIRMAN AND MEMBERS. MY
NAME'S REX FRAZIER WITH
PERSONAL INSURANCE FEDERATION
OF CALIFORNIA THANK YOU FOR THE
OPPORTUNITY TODAY TO PRY
TESTIMONY REGARDING THE CD EYES
WORKING DRAFT OF AFFINITY GROUP
REGULATIONS. AFFINITY GROUPS
PROVIDE MILLIONS OF DRIVERS
WITH HUNDREDS OF MILLIONS OF
DOLLARS AND AUTO INSURANCE
DISCOUNTS EVERY YEAR. AND IF
THE CD I. INTENDS TO MOVE
FORWARD WITH AFFINITY GROUP
REGULATIONS WE URGE THEM TO
ADOPT RULES THAT FURTHER EXPAND
THE REACH OF GROUP DISCOUNTS IN
PLACE. THE CURRENT PROPOSAL
UNFORTUNATELY GOES IN THE
OPPOSITE DIRECTION IN MANY
CASES THE PROPOSAL WOULD
ELIMINATE THE DRIVER'S
ELIGIBILITY FOR A GROUP
DISCOUNT THE HERE SHE CURRENTLY
ENJOYS. AND MANY OTHER CASES
THE PROPOSAL WOULD REQUIRE A
DRIVER TO GIVE UP ONE OR MORE
DISCOUNTS IN ORDER TO KEEP
THEIR CURRENT GROUP DISCOUNT.
WE ARE HOPEFUL PUBLIC DIALOGUE
SUCH AS TODAY'S HEARING WILL
HIGHLIGHT LEGITIMATE CONCERNS
WITH THE DRAFT PROPOSAL AND
HELP THE CD I CRAFT A REVISED
VERSION. THAT WORKS ALL
CALIFORNIANS. NOT ONLY OTHER
POLICY PROBLEMS WITH THE THIS
REGULATION THERE ARE
SIGNIFICANT LEGAL ISSUES. THE
PLAIN LANGUAGE OF PROPOSITION
ONE OF THREE EXPLICIT PERMITS
GROUP PLANS WITHOUT DIRECTION
AS TO THE PURPOSE. OF THE-
OCCUPATION OR TYPE OF GROUP.
YEAH THE LAW IS CLEAR THE GROUP
INSURANCE RATE SHALL. ON FOR.
BUT TORY AS LONG OUR AVERAGE
BROAD AMONG MEMBERS. HOWEVER
THE PROPOSED STATION IS THE
WHICH OF FOR ONE OF THREE AND
WOULD UNDO THE MANY GROUP
INSURANCE OPTIONS THAT THE CD I
ITSELF HAS APPROVED OVER
SEVERAL DECADES. THE POPE
REGULATIONS PROVIDES TO FIX
THESE POLICY AND LEGAL
CONCERNS. AND AS THE CDI
CONSIDERS ITS NEXT STEPS WE
WOULD ENCOURAGE THE FOLLOWING
REVISIONS TO THE CURRENT ACT.
FIRST TO LIMIT THE DRAFT
REGULATION TO AUTO INSURANCE
ONLY THE CD I HAS NOT PRODUCED
ANY INFORMATION REGARDING THE
GROUP MARKET BEYOND AUTO
INSURANCE. SECOND ELIMINATE THE
PROPOSED REQUIREMENT THAT A
DRIVER CAN ONLY OBTAIN A
DISCOUNT THROUGH AN EMPLOYER
UNION OR OTHER GROUP TO WHICH
THE DRIVER PAYS DUES OR FEES.
UNDER CURRENT LAW THE BRIDGE
CAN OBTAIN DISCOUNTS BASED UPON
THEIR JOB JOB TRAINING OR JOB
CERTIFICATIONS WITHOUT BEING
FORCED TO PAY DUES ARE A FEW TO
ANYONE. SHOULD AN EMPLOYEE ONLY
HAVE ACCESS TO A GROUP DISCOUNT
FROM THE INSURER THAT
MANAGEMENT OF AN EMPLOYER
CHOOSES. HEARD ELIMINATE THE
PROPOSED REQUIREMENT THE GROUP
DISCOUNTS MUST INVOLVE A
WRITTEN AGREEMENT BETWEEN AN
ORGANIZATION AND AN INSURER.
AND FOR THOSE THOSE DISCOUNT
PROGRAMS CURRENTLY IN OPERATION
THAT YOU INVOLVE A WRITTEN
AGREEMENT. ELIMINATE THE
PROPOSED REQUIREMENT THAT THE
ORGANIZATION IN THE INSURER
PUBLICLY DISCLOSE THE PRINT
THIS BUSINESS ARRANGEMENT.
FOURTH MAKE THE FILING
REQUIREMENTS FOR AFFINITY GROUP
PROGRAMS REALISTIC PARTICULARLY
THE PROPOSED REQUIREMENT THAT
AN INSURER WOULD AFFIRMATIVELY
MUST DISPROVE THAT IS VIOLATING
CIVIL RIGHTS LAW IN ORDER TO
GET AN APPROVAL. PROPERLY
APPLIED THE UNRUH ACT- TO SAY
THE LEAST THE PROPOSAL GOES
WELL BEYOND CASE LAW. AND WE
COULD SPEND I HAVE. YEAH BUT
WHAT I'M THE PROCESS FOR
VERIFYING THAT A DRIVER
ACTUALLY QUALIFIES FOR A GROUP
DISCOUNT WE HAVE NO PROBLEM
WITH VERIFICATION REQUIREMENTS
BUT THE VERIFICATION
REQUIREMENTS AND PROPOSED DRAFT
ARE SIMPLY COMMERCIALLY
UNREASONABLE. THE INSURANCE
COMMISSIONER HAS EXPRESSED
CONCERN OVER WHETHER THE
CURRENT GROUP INSURANCE MARKETS
SERVICE ALL COMMUNITIES AND WE
ARE COMMITTED TO WORKING WITH
THE COMMISSIONER TO ELIMINATE
THESE CONCERNS AND LOOK TO
FURTHER GUIDANCE FROM THIS. GUY
ON WHICH TYPE GROUP COMES ARE
UNDER REPRESENT THE MARKET. WE
BELIEVE THERE'S A ROLE FOR THE
COMMISSIONER TO PLAY IN
SPURRING ADDITIONAL DISCOUNT
THROUGH SOME TYPE OF MARKET
ASSISTANCE MECHANISM YEAH.
LATER THIS WEEK WILSON DETAILED
SUGGESTIONS TO THE CD I FOR HOW
TO A COP THE ABOUT CHANGING.
OUR GOAL IS TO CAN ON A-
RESERVE EXIST DRIVER ACCOUNTS
WELL EXPECT THE SUBJECT DISK
FOR MORE SHOULD. BE HAPPY TO
TAKE ANY. THANK YOU. THANK YOU
MISTER FRAZIER OTHER ANY
QUESTIONS FOR. MR VOEPEL GO
AHEAD SO MISTER FRAZIER- ON.
THE INDUSTRY. WHY DON'T WE HAVE
OR DO WE AVE I'D MIND NOT EVEN
BE AWARE OF IT A LOW INCOME
AFFINITY GROUP FOR GOOD DRIVERS.
I INCOME. LOW INCOME AFFINITY
GROUP FOR GOOD DRIVERS IN OTHER
WORDS IF YOU'RE BELOW A CERTAIN
INCOME CHAIR YOU ARE ELIGIBLE
FOR AN AFFINITY GROUP THAT
WOULD GIVE YOU A DISCOUNT I
HAVE A GOOD DRIVER RECORD- BUT
NOT AWARE OF GROUPS THAT ARE
ARE PRESENTLY FIVE WITH AN
APPROVED BY THE I'M SURE THAT
INCLUDING COM OR THE THAT WOULD
BE PART F AN APP. THAT CARE.
RISKY CERTAINLY BUT THE TYPES
OF GROUP DISCOUNTS THAT HAVE
BEEN PREDOMINANT OVER TIME HAVE
RELATED TO- THE TYPE OF JOB OR
TRAINING OR MEMBERSHIP TO
EDUCATION WHAT SAMPLE I'M NOT
ASSOCIATION OF YOU KNOW SOME
SOMETHING LIKE THAT- AND SO
COULD BE RELATED TO INCOME BUT
A AT THIS POINT I'M NOT EVEN
SURE THAT THE DEPARTMENT
APPROVAL FILING LIKE IMPORTANT.
FOR THREE DECADES INTO THIS IF
THE DEPARTMENT OF INSURANCE
THOUGHT ANY GROUP THAT'S
PRESENTLY APPROVED WAS
INAPPROPRIATE THEY WOULD HAVE
DISAPPROVED. YOU KNOW WE'RE
RIGHT NOW IT'S NOT AS IF YOU
CAN AS A CARRIER JUST DECIDE
YOU WANT TO- HAVE A GROUP AND
THEN JUST GO ABOUT OFFERING A
CHANGED PRICE FOR THAT GROUP
YOU HAVE TO GO TO THE
DEPARTMENT OF INSURANCE SO IT'S
A FAIRLY ARDUOUS PROCESS- WE
WOULD CERTAINLY ARE YOU THAT
THE BEST THING THE DEPARTMENT
COULD DO. IS TO MAKE THE
APPROVAL OF GROUP- PROGRAMS
EASIER- SO THAT IT'S SOMETHING
CARRIERS WOULD BE MORE LIKELY
TO DO RIGHT NOW IT GETS CAUGHT
UP IN A PRETTY COMPLICATED
PROCESS FOR ONE QUESTION. ALL
RIGHT. IF YOU CAN'T GO WITH
INCOME WHY NOT HAVE BECAUSE OF
THE INSURANCE. GUYS GIVE US.
DETAILED LISTS. PRINT IT IS.
WHAT IF ANY RED OR PINK AREA.
WOULD QUALIFY FOR A GOOD
DRIVER. AFFINITY DISCOUNTS. IF
I UNDERSTAND YOUR QUESTION
CERTAINLY- THE DEPARTMENT OF
INSURANCE PRESENTLY- ALLOWS ONE
COMPONENT OF THE RATE BEING THE
GARAGING ADDRESS OF THE DRIVER
IN THE LOS- EXPERIENCE AROUND
THAT GARAGING ADDRESS NOW THAT
IS LIMITED UNDER THEIR CD I
REGULATIONS. AT THAT IMPACT CAN
NEVER EXCEED THE WAIT FOR IT TO
THE THIRD MANDATORY FACTOR OF
YEARS AND DRIVING EXPERIENCE SO
BUT CERTAINLY- FREQUENCYLOSS
AND SEVERITY OF LOS BY GARAGING
ADDRESS IS A LONG APPROVED
RATING FACTOR IN THE CURRENT
SYSTEM UNDERSTOOD ONE LAST
COMMENT. ON WHAT I'M LOOKING AT
THE DO YOU HAVE INSURANCE ONE
TEEN IS THAT GOOD DRIVERS THAT
ARE LOWER INCOME PER CAPITA OF
BE ALSO. HAVE DISCOUNTS THROUGH
AN OF ENERGY GROUP. AVAILABLE
THEY CAN CERTAINLY BY AN
INDIVIDUAL POLICY AND QUALIFY
FOR IT. HE YELLED AT A PRICE
THIS IS WHITER THAN JUST GOOD
DRIVERS RIGHT THIS IS ALL THIS
IS ALL DRIVERS REGARDLESS OF
YOUR YOUR NPR- WHICH IS THE
ONLY WAY THAT YOU CAN THEN
DISCOUNT SO THIS IS FOR. THE
DRIVERS THE HARD PART FOUR
INCH- RAISES THEY'LL THEY'LL
MAKE A FILING THAT SAYS WE HAVE
DATA TO SUGGEST THAT THIS
PARTICULAR GROUP. IS WERE LOWER
LOS. LIKELY HAD. AND THEY'LL
FILE THAT WITH THE DEPARTMENT
OF INSURANCE AND THEN. IF
APPROVED THEY CAN IMPLEMENT
THAT IN THE MARKET WHERE. WHEN
SOMEONE IS APPLYING THEY CAN
DETERMINE THAT SOMEONE. QUALIFY
THIS PARTICULAR DISCOUNT.
OFTENTIMES INSURERS DON'T
CONTROL ALL WHO COMES INTO
THEIR BOOK OF BUSINESS BECAUSE-
THERE'S TAKE ALL COMERS
PROVISION. DRIVERS AND UNDER
THE STATUTORY MISSION WE'VE
ALWAYS UNDERSTOOD 7080% OF
DRIVERS ARE GOOD DRIVERS. SO
THAT MEANS 78280% OF APPLICANTS
THE INSURER MUST ACCEPT. REGARD
AND THEN IF THE PERSON
QUALIFIES FOR A DISCOUNT THAT
BECOMES PART OF THEIR RATING
METHODOLOGY SO. SO IT'S HARD TO
LOOK AT THAT MAP BUT THEN
CONNECTED TO WHAT DOES THE
DEPARTMENT EXPECTED INSURANCE
COMPANY TO DO THEY'RE THEY'RE-
THEY'RE NOT. ALLOWED TO INTAKE
BASED UPON. ZIP CODE. RIGHT
THEY HAVE TO ACCEPT ANYONE WHO
COMES IN THEY HAVE A SEPARATELY
APPROVED DISCOUNT PROGRAM THE
DEPARTMENT HAS SAID. THAT THE
THAT CARRIER JUST BY THE
ACCOUNT TO BE OFFERED AS THEY
APPLY THAT AS PART OF THE
RATING PROCESS. SO HOW DO YOU
SORT CONNECT THESE TWO ISSUES
WE DON'T YET UNDERSTAND IT'S
BEEN DIFFICULT TO DEAL WITH THE
DEPARTMENT OF INSURANCE
ARGUMENTS WILL BE USING THIS
PER CAPITA IN I'M- MEASURE.
THAT COST THE BITTER FUSION. ON
THE ONE HAND GOING TO THAT
AGENCY. LOOK PACKED. DIVIDED
QUINTILES IN HOUSE MAJORITY OF
GROUP DISCOUNT BENEFICIARIES
AND THEIR OWN STUDY ARE IN ZIP
CODES WERE THE PER CAPITA
INCOME IS FIFTY THOUSAND
DOLLARS OR LESS RIGHT AND SO
THAT'S NOT EVEN POVERTY LINE IN
LOS ANGELES COUNTY SO WHEN YOU
SEE A GROUP DISCOUNT PROGRAM AT
BY THEIRUP MEASURES IS. WHAT
WHAT WHAT THE OF BENEFIT IN.
BOB PERK PRAC PER CAPITA INCOME
LEVELS ZIP CODES A FIFTY
THOUSAND DOLLARS OR LESS AND
THEN BE TOLD THAT THERE IS THE
PROBLEM THAT THEY'RE SUGGESTING
WE'RE TRYING TO UNDERSTAND EACH
YEAR HOW THEY'RE USING THAT
DATA THANK YOU MISTER THANK YOU
MISTER WILL FOR YOUR QUESTIONS
AND LETS. OUT A MISTER SIN FROM
CALIFORNIA CASUALTY MISTER
FRAZIER THANK YOU VERY MUCH GO
AHEAD SIR. YES GOOD MORNING
MISTER CHAIRMAN THE MEMBERS
THANKS FOR THE OPPORTUNITY TO
ADDRESS YOU THIS MORNING. MY
NAME IS CHUCK MUNSON I
REPRESENT CALIFORNIA CASUALTY
WHERE I'M SENIOR VICE PRESIDENT
OF CUSTOMER SERVICE
UNDERWRITING AND PRODUCT
DEVELOPMENT. CALIFORNIA CAVALRY
BEGAN IN NINETEEN FOURTEEN
REDDING WORKERS COMPENSATION
COVERAGE FOR CALIFORNIA
BUSINESSES. OVER TIME THE
COMPANY SHIFTED ITS FOCUS TO
PERSONAL LINES ALMOST SEVENTY
YEARS AGO IN NINETEEN FIFTY ONE
WE ACTUALLY PIONEERED THE
PERSONAL LINES GROUP
SPONSORSHIP APPROACH BY
PARTNERING WITH THE CALIFORNIA
TEACHERS ASSOCIATION TO PROVIDE
HIGH QUALITY AUTO AND
HOMEOWNERS COVERAGE IN SERVICE
AT AN AFFORDABLE PRICE. WE'VE
TRAVELS DOZENS OF ADDITIONAL
PARTNERSHIPS OVER THE YEARS
WITH OTHER CALIFORNIA PUBLIC
EMPLOYEE UNIONS IN THE FIELDS
OF EDUCATION AND PUBLIC SAFETY.
INCLUDING FIFTY YEARS AGO IN
NINETEEN SIXTY NINE THE
CALIFORNIA PEACE OFFICERS
RESEARCH ASSOCIATION OF
CALIFORNIA AND FORTY FIVE YEARS
AGO IN NINETEEN SEVENTY FOR THE
CALIFORNIA ASSOCIATION OF
HIGHWAY PATROLMAN. WE HAVE A Y.
WE EXIST STATEMENT THAT WE LIVE
BY AS A COMPANY. FULL WHO
COMMIT TO MAKE A DIFFERENCE FOR
OUR COMMUNITIES DESERVE
FINANCIAL PROTECTION WITH THE
HIGHEST LEVELS OF CARE SERVICE
COMPASSIONATE UNDERSTANDING
WHICH IS. IN A NOVEMBER TWO
THOUSAND NINETEEN CONSUMER
REPORTS STUDY OF ATO INSURERS
WE TIED FOR FIFTH OUT OF FIFTY
TWO COMPANIES IN THE STUDY. OUR
PRIMARY CONCERNS ARE THAT THE
REGULATIONS REQUIRE THE PUBLIC
DISCLOSURE OF CONTRACTS ENTERED
INTO BY PRIVATE ENTITIES AND
THAT THEY WOULD EXPERT IMPOSE
RATE FILING AND DATA REPORTING
REQUIREMENTS THAT WOULD BE VERY
DIFFICULT AND EXPENSIVE FOR ANY
CASUAL. TO COMPLY WITH. THESE
COULD AFFECT JEOPARDIZE OUR
ABILITY TO CONTINUE TO PROVIDE
COVERAGE AND SERVICE TAILORED
TO THE SPECIFIC NEEDS OF OUR
GROUP PARTNERS AT AN AFFORDABLE
PRICE. THE REGULATIONS AS
DRAFTED IMPOSE BURDENSOME
FILING DATA REPORTING AND
PUBLIC DISCLOSURE REQUIREMENTS
AS MENTIONED. THAT WE DO FEEL
ARE GOING TO IN THE END DRIVE
UP THE PREMIUM FOR OUR GROUP
MEMBERS AND DIMINISH THE VALUE
OF THAT BENEFIT FOR THEIR FOR
THEIR GROUP MEMBERS. THERE ARE
SOME IN ELEMENT TO IT. MOVING
THE RATING FROM A. EIGHTEEN
SIXTY ONE TWELVE GENERAL RATE
LEVEL FOR GROUP OVER TO THE
INDIVIDUAL RATING ALGORITHM OF
EIGHTEEN SIXTY ONE OR TWO WAY
THAT WILL SUBSUME THE
IMPORTANCE OF THE GROUP. SHIP
WAY DOWN THE LIST OF OPTIONAL
RATING FACTORS AND
MATHEMATICALLY WILL ALMOST
CERTAINLY DIMINISH THE VALUE
AND BENEFIT OF THOSE GROUP
DISCOUNTS. THANK YOU. ARE THERE
QUESTIONS FOR MISTER MUNSON.
AND AGAIN THANK YOU FOR
HIGHLIGHTING THAT YOU HAVE
RELATIONSHIPS- BEYOND THE
CALIFORNIA TEACHERS ASSOCIATION
WITH THE HIGHWAY PATROL AND- IN
OTHER PUBLIC EMPLOYEES THANK
YOU FOR THAT. IF THERE ARE NO
FURTHER QUESTIONS WE THANK THIS
PANEL FOR YOUR INSIGHT AND YOUR
COMMENTS THANK YOU VERY MUCH.
IN THE LAST PART OF OUR AGENDA
WILL BE PUBLIC COMMENTS WE WILL
ASK THE CONTENT TO ABIDE BY A
TWO MINUTE. CAP ON THE COMMENTS
IN PLEASE GO AHEAD SIR THANK
YOU VERY MUCH OF MY NAME IS
RICHARD HALL BROWN WITH THE
CONSUMER FEDERATION OF
CALIFORNIA AND THE SEA OF SEA
EDUCATION FOUNDATION- WE'VE
BEEN INTERVENOR IS A DEPARTMENT
OF INSURANCE PROCEEDING SINCE
TWENTY THIRTEEN WE'VE
INTERVENED AND ABOUT FIFTEEN
RATE CASES WHERE WE HAVE SAVED
TUMORS OF OVER A HUNDRED FIFTY
MILLION DOLLARS IN RATE HIKES
THAT WERE PROPOSED I'D LIKE TO
FIRST DISTRIBUTE A LETTER THAT
WAS SIGNED BY FOURTEEN CONSUMER.
SEARCH RIGHTS. A LOW INCOME
IMMIGRANT ANOTHER ADVOCACY
GROUPS THAT SUPPORT THE
REGULATIONS AND I ALSO WOULD
LIKE TO READ A STATEMENT THAT I
JUST RECEIVED FROM MISTER BOB
HUNTER HE WAS MENTIONED EARLIER
WHO IS AN EXPERT WORSE FOR
CONSUMER FEDERATION OF AMERICA
I HAVE AN EMAIL SAYING THAT
FROM MISTER HUNTER NEITHER ALL
I NOR CONSUMER FEDERATION OF
AMERICA HAVE EVER SUPPORTED THE
USE OF SO CALLED AFFINITY
GROUPS WHEN WE FIRST OF ALL BUT
IDEA OF TRUE GROUP. THAT SHOULD
OF ACT TWO OR TURNS GROUP
POLICY YOU NEVER EVEN HEARD THE
TERM AFFINITY GROUPS THIS
VERSION WAS ALWAYS AND ONLY
MEANT WELL TRUE GROUPS. HE'S
LIKE THE A RP TO HAVE THE
OPPORTUNITY TO LEVERAGE SAVINGS
THROUGH THEIR CONSUMER POWER. I
AM CONSUMER FEDERATION AMERICA
SUPPORT THE COMMISSION IS
REGLATORY EFFORTS TO PROHIBIT
THE USE OF EDUCATION AND
OCCUPATION AS PHONY GROUPS THAT
RAISE RATES ON LOWER INCOME
CALIFORNIANS. AND WE SUPPORT
THE COMMISSIONERS PLANNED TO
PROTECT THE ABILITY OF TRUE
GROUPS TO BUY. INSURANCE ON A
GROUP BASIS AND I WILL. PROVIDE
THIS TO YOU IT'S AN EMAIL SO I
CAN SEND IT OUT BUT IN BRIEF
AND I LOVE TRAVEL WILL BE
ADDITIONAL TIME BECAUSE WE DO
WORK IN THIS AREA. UP THE GROUP.
GROUPS SHOULD BE REAL LIVE
MEMBERS WERE IN THE PROPOSAL AN
EMPLOYER CAN CONSTITUTE A GROUP
RATHER THAN A FIGMENT OF THE
IMAGINATION OF AN INSURANCE
COMPANY WHICH IS ALMOST
ENTIRELY. WHETHER YOU HAVE A
HIGHER LEVEL OF ADVANCED
EDUCATION OR A JOB TITLE THAT
SUGGEST YOUR HIGHER INCOME
PERSON AND THEY BENEFIT WITHOUT
BEING MEMBERS OF A REAL GROUP
THAT SITS DOWN LIKE THE CTA AND
OTHERS AND NEGOTIATES WITH
INSURANCE COMPANIES NOTHING IN
THESE WERE ELECTIONS. TO THE
CURRENT EXISTENCE OF REAL
GROUPS THAT HAVE THEIR OWN LIFE
AND THAT ENTER INTO AGREEMENTS
WITH INSURANCE COMPANIES FOR
DISCOUNTS COMMENTS THAT WERE
MADE ABOUT SOME OF THE
DISCLOSURE OF PROVISIONS OF THE
OF THE REGULATION WE DO NOT
HAVE A POSITION ON THAT BUT WE
DO BELIEVE THAT GROUP DISCOUNTS
SHOULD BE BETWEEN REAL GROUPS
THAT REALLY EXIST HAVE
REMEMBERS THAT CAN THEN
NEGOTIATE. WITHIN THIS COMPANY
I. YOU REAL LIFE. WHERE GEICO
AGGRESSIVE AND MERCURY
INSURANCE WE GET ONLINE QUOTES
YOU CAN FILL OUT THEIR ONLINE
MODULE EVERY THING YOU FILL OUT
IS EXACTLY IDENTICAL. ABOUT
YOUR DRIVING HISTORY AND ON
DOWN THE LIST UNTIL THE END
THEY ASK ABOUT YOUR EDUCATIONAL
DEGREE ATTAINMENT OR YOUR
OCCUPATION AND IN THE CASE OF
GEICO IF YOU SAY YOU ARE AN
INVESTMENT BANKER. YOU GET A
14% LOWER RATE THAN SO WHO'S
OTHERWISE IDENTICAL WHO SAYS
THERE OF OUR FIGHTER FOR BASIC
COVERAGE WOULD YOU PLEASE
WRAPPED UP THE SAME IS TRUE BUT
PROGRESSIVE SIDE AND- OF
MERCURY. RIGHT THESE ARE REAL
LIVE A- WHICH I. YOU OF HOW
THIS ACTION WORKS. LOWER RATES
FOR HIRING. HIGHER RATE FOR LOW
AND MODERATE INCOME PEOPLE
THANK YOU VERY MUCH THANK YOU
FOR YOUR COMMENTS. PLEASE GO
AHEAD. GOOD MORNING I A MEMBER
OF THE COMMITTEE I AM
REPRESENTING GUY ARE QUITE
SIMPLY OUT HIT THE KEY POINTS
HERE THE CD I PROPOSAL WILL GO
A STRIP AWAY DISCOUNTS FOR
MILLIONS OF CALIFORNIANS
HUNDREDS OF THOUSANDS IN YOUR
DISTRICT THE REPRESENT. ONE OF
THE CRUCIAL PUBLIC POLICY
QUESTION FOR YOU IS WHAT
HAPPENS. TWO INDIVIDUALS WHO
DON'T HAVE THE RESOURCES TO
JOIN A GROUP OR CREATE A GROUP
OR FORMER. STATED DIFFERENTLY
WHAT DO WE TELL. THAT
CONSTITUENCIES SUCH AS
SECRETARIES AND OTHER GROUPS
WHEN SUDDENLY THEIR AUTO
PAYMENTS GO UP BECAUSE THEY'RE
GROUP IS NO LONGER A RECOGNIZE
CVI GROUP. I'LL WRAP UP WITH AT
A TIME WHEN INSURANCE COSTS ARE
WILSHIRE'S COST IS GOING UP
THIS IS NOT THE TIME TO DO THIS
I WISH THE TDI NOT THE TRIPLE A
DISCOUNT FROM MILLIONS. RATHER
LET'S LET'S FOCUS ON EXPANDING
IT READ ELIMINATING IT THANK
YOU. THANK YOU SIR. PLEASE GO
AHEAD. YEAH THANK YOU MISTER
CHAIRMAN COMMITTEE MEMBERS
JOINT COMMITTEE PRESIDENCY OF
THE CALIFORNIA SPENT CHAMBERS
OF COMMERCE. OUT WE ARE
ACTUALLY- NETWORK OF OVER
EIGHTY FIVE. IS SB EXPANDED
CHAMBERS BUSINESS ISSUES
THROUGHOUT THE STATE. REPRESENT
THE INTERESTS OF THE OVER EIGHT
HUNDRED THOUSAND HISPANIC
BUSINESS OWNERS- ALL OF WHOM
ARE ABLE TO BENEFIT FROM OUR
LONG STANDING. AFFINITY PROGRAM
WITH LIBERTY MUTUAL AND NOT
ONLY ARE BUSINESS OWNERS BUT
THEIR EMPLOYEES CAN IF IT AS
WELL I MAKE THAT VERY CLEAR.
THE END AT THE TENT BEHIND A
BEHIND THE- RELATIONS IS
PURPORTEDLY TO CREATE A MORE
USE OF AN EQUITABLE AND SHIPS
AND BY. THIS IS A LOT WILL GROW
GOAL. WHATEVER THE FRAMING THAT
READ. DISCOUNTS AS PRIVILEGE
DEFINITELY COMES AS- SPECIAL
PASSED IN ARE. MOST THANK YOU
OUT OF THE CITY I AM INTO THAT
MAJORITY DRIVERS RECEIVING
AFFINITY GROUP DISCOUNTSARE IN
FACT CLASSIFIED AS LOWER
INCOME. ALREADY OVER REGULATING
THESE TYPES OF DISCOUNTS WELL
MOST OF BUT AT THE CERTAINLY
BACKFIRE AND THE HARD WORKING.
PEOPLE OF CALIFORNIA WILL BE
THE COLLATERAL DAMAGE- WE ARE
WE ARE ACTUALLY GETTING TIRED
OF HAVING TO SAY THIS OVER AND
OVER TO A STATE INSTITUTION
THAT IS MADE IT FEEL UNHEARD.
INSTEAD OF LISTENING ARM TO US.
THEY SEEM TO GIVE MORE CREDENCE
ORGANIZATIONS LIKE CONSUMER
WATCHDOG. I'M HERE ON AFTER
THOUSAND HISPANIC BUSINESS
OWNERS AND EMPLOYEES WHO RELY
ON OUR AFFINITY GROUP. DISCOUNT
PROGRAM THAT THE DEPARTMENT IS
TRULY. DOING THIS IN THE BEST
INTEREST OF CALIFORNIA'S
DIVERSE COMMUNITIES OUR OPINION
ON THIS ISSUE SHOULD MATTER
EVEN MORE THANK YOU THANK YOU
MISTER CAN. PLEASE GO FOR GOOD
MORNING I AM PASTOR ROBERT
JONES OF THE CALIFORNIA
ASSOCIATION OF BLACK PASTORS.
AND WE'RE HERE TO OPPOSE THIS-
STATEMENT THAT AN EFFORT THAT
THE COMMISSIONER SAYS IS WRONG-
AND HE'S WRONG. WHEN HE
IMPUGNED IS THIS- THESE
AFFINITY DISCOUNTS AS BEING
DISCRIMINATORY AND DRIVING UP
THE COST OF INSURANCE FOR
ORDINARY CALIFORNIANS. OF IS
COMMISSION IS GOING TO BE AN
ADVOCATE ON BEHALF OF THOSE
FOLKS THAT FEEL DISCRIMINATED
AGAINST PERHAPS HE SHOULD.
DIRECT THOSE EFFORTS TO-
PROMOTING DISCOUNTS AND EFFORTS
TO SPREAD AND EXPAND THESE
SENATE A GROUP DISCOUNTS TO
THOSE COMMUNITIES ARE TYPICALLY
AND- HISTORICALLY-
SYSTEMATICALLY. TO SERVE. AND
ILL INFORMED AND ELY QUICK AND
SO- THROUGHOUT THE STATE ARE
CONSTITUENTS. FEEL THAT THEY
ARE SENATE IN MANY CASES
BECAUSE THEY'RE NOT THEY'RE
THEY'RE BUSY DEALING WITH THE
DAY TO DAY ISSUES- WHEN THE
COST OF INSURANCE GOES UP YOU
TAKE AWAY THIS DISCOUNT THEN
THEY HAVE THEY THEY'RE
OPERATING ON A VERY SMALL
MARGARINES AND WHEN IT COMES TO
LOWERING INSURANCE PREMIUMS FOR
ORDINARY CALIFORNIA'S DEATH
DISCOUNT. IN FACT IT'S NOT THE
PROBLEM IT'S SOLUTION. THAT A
BIRD NAY THESE GROUPS WITH
EXCESSIVE RED TAPE AND
BUREAUCRACY- THE COMMITTEE
SHOULD LOOK TO IT AND ACCESS TO
THESE PROGRAMS AS A VET OF THE
UNITED STATES I AM NOT PROUD TO
RECEIVE THE DISCOUNT. TO GET
THROUGH MY WORK WHICH IS HERE
TO. BUT I THINK THAT ALL OF
YOUR CONSTITUENTS. SHOULD
RECEIVE DISCOUNTS FROM THOSE
AFFINITY GROUPS AND DO NOT.
TAKE THOSE AWAY IT'S THE WRONG
THING TO DO AND I THINK WE
SHOULD ENCOURAGE OUR
COMMISSIONER AND THE DEPARTMENT
TO CONTINUE WITH THIS AND
EXPANDED AND PUT. THE LEFT. IS
JOHN. HI CARLOS MARQUEZ ABOUT
THE CALIFORNIA CHARTER SCHOOLS
ASSOCIATION FIRST THANK YOU FOR
HOLDING THE OVERSIGHT HEARING
AND GIVING ATTENTION AND CARE
TO THE ISSUE AT HAND- WE WANT
TO JUST OFFER OPPOSITION TO THE
PROPOSED RULE CHANGE- WE CAN'T
WE ARE CONCERNED THAT THE
IMPACT ON OUR SECTOR- COULD
AMOUNT TO TWENTY THOUSAND OR
MORE CHARTER SCHOOL TEACHERS
LOSING- SUCH DISCOUNTS AND WE
BELIEVE THAT DISCOUNTS RANGE
FROM TWO TO FIVE THAT SO.
MOUNTING A FEW DOLLARS A REALLY
DOES I PROPORTIONATELY IMPACT
FOLKS DO FOLKS BUT OTHERS
TALKED ABOUT EARLIER ARE REALLY
BUDGETING AND THE MARGINS WE
ARE IN THE MIDDLE OF A HISTORIC
TEACHER SHORTAGE AND WE SHOULD
BE DOING EVERYTHING WE CAN TO
PUT X. AND. OUR COUNTER TO THAT
GOAL SAID THANK YOU. THANK YOU
MISTER MARCUS. PLEASE GO AHEAD
YEAH MY IS WALTER CONTRARIS AND
I AM THE VICE PRESIDENT OF THE
NATIONAL LATINO EVANGELICAL
QUALITY XIN IN THE WESTERN
REGION WITH THIRTY THOUSAND
MEMBERS CHURCHES. MYSELF AND MY
ORGANIZATION ALSO BENEFITS FROM
THIS KINDS OF DISCOUNTS. THIS
PROPOSED REGULATIONS ARE NOT
ONLY MAKING IT HARDER FOR
RESIDENTS. OUR CONGREGATE IN A
CON AGAINST AMONG THEM TO
DETERMINE WHETHER OR NOT THEY
QUALIFY FOR ANY OF GROUPS
DISCOUNT. MANY HOOPS. TO JUDGE
THROUGH THIS REGULATIONS SEEM
TO ACHIEVE THE OPPOSITE OF WHAT
THE DEPARTMENT SET OUT TO DO.
CREATE A MORE LEVEL PLAYING
FIELD. IT IS FRUSTRATING TO ME
THE DEPARTMENT HAS RECEIVED
LETTERS FROM NOW LIKE FROM OUR
INSTITUTION AND OTHER GROUPS
WE'VE TESTIFIED AT HEARINGS.
AND YET NOTHING WE SAY SEEMS TO
MATTER WE ARE MEMBERS OF THE
GROUPS WHO THEY ARE CLAIMING
ARE DISCRIMINATED AGAINST WHEN
IT COMES TO THIS AFFINITY GROUP
PROGRAMS. OUR DIFFERING OPINION
TO THE CD I RENDER OUR VOICES
SILENT. DOES OUR STAKE IN THIS
NOT MATTER BECAUSE WE DISAGREE
WITH YOUR PLAN TO SAVE US FROM
THIS SUPPOSED DISCRIMINATORY
PRACTICES. I HOPE THE COMMITTEE
WILL GIVE OUR THOUGHTS IN THIS
ISSUE CREEDENCE WE FEEL A
DEPARTMENT SHOULD LOOK AT HOW
IT CAN FILL THE NON. YEAH OF
OUR LOW IN COMMUNITY REGARDING
ACCESS TO AFFINITY GROUPS
INSTEAD OF PUSHING FOR MORE
REGULATIONS THAT WILL MAKE IT
EVEN MORE DIFFICULT FOR PEOPLE
LIKE OUR PARISHIONERS TO
PURCHASE AFFORDABLE AUTO
INSURANCE. WE MUST. DEFINED AS
REALITY WE MUST ACCEPT THIS
REALITY WE MUST DO SOMETHING
ABOUT IT THANK YOU VERY MUCH
THANK YOU MISTER CONTRARIS
PLEASE GO AHEAD GERMAN DAILY MR
COOLEY MEMBERS- MIKE MATIC ON
BEHALF OF THE CONSUMER WATCHDOG
NATIONAL GUARD ASSOCIATION-
WHERE I START COUPLE QUICK
POINTS AND THEN A COUPLE QUICK
OBSERVATIONS- X. I. THE FAIR
AND BY BACKGROUND. PAPER I
THANK YOU FOR THAT AND ALSO
THANK YOU FOR INCLUDING THE
WATCH DOGS PETITION TO THE
DEPARTMENT OF INSURANCE IN YOUR
PACKET. I ALSO LIKE TO
CONGRATULATE THE DEPARTMENT OF
INSURANCE FOR- ALL THEIR HEART
MISTER HADLEY A NICE JOB EVEN
THOUGH WE DON'T AGREE ON
EVERYTHING ALWAYS VERY
PROFESSIONAL- STAFF AT THE
DEPARTMENT THANK YOU FOR THAT-
THE COUPLE QUICK POINTS ARE.
COMPANIES ARE FACT THIS.
AGAINST LOW INCOME AND MINORITY
DRIVERS THEY GIVE DOCTORS
LAWYERS DISCOUNTS THAT THAT
WILL HAVE TO BE PAID BY THE
FOLKS THAT ARE WORKING AS
JANITORS AND WAITRESSES WE'VE
WE'VE HEARD ABOUT. ALSO NOTED
THAT THIS IS A ZERO SUM. IF
YOU'RE GONNA GIVE THAT. BENNETT
TO SOME OTHER PEOPLE HAVE TO
PAY EXTRA IN THE PREMIUMS
THAT'S A FACT THAT'S JUST THE
WAY THE MATH WORKS. THE IMPACT
IS HIGHER RATES FOR LOW INCOME
AND MINORITY DRIVERS WE JUST
FELT IT WAS TIME FOR THE
DEPARTMENT TO ADDRESS THIS LAST
VESTIGE REDLINING COUPLE QUICK
OBSERVATIONS WOULD BE- ON THIS
AGENDA ON THE STAKEHOLDERS LESS
THERE'S ONE GLARING OMISSION.
THE GENTLEMAN THAT WROTE PROP
ONE OF THREE THE LAW THAT YOUR
DEBATING HERE TODAY EVERY
ROSENFELD SHOULD HAVE BEEN HERE
SHOULD MINUTE A SEAT THERE. YOU
GUYS ARE NOT SURE ABOUT THE BAY
PEOPLE AND I THINK YOU WOULD
HAVE ENJOYED THE DISCUSSION I
DEFINITELY WOULD HAVE PAID TO
SEE MR COOLEY MISTER. ROSA FIVE
THE- STREET CURRENCY. NEXT TIME
MAYBE THAT'LL BE THE CASE AND I
THINK THAT WOULD BE IMPORTANT
THAT WE- TO. DISCUSS THIS
DISCUSSED WITH THE PEOPLE HAD
THE I COVER ROSENFELD WHO
ACTUALLY WROTE THE LAW THAT
WE'RE TALKING ABOUT. SO YOU
HAVE OUR PETITION IF YOU DON'T
HAVE IT YOU CAN GO TO CONSUMER
WATCHDOG DOT ORG AND PULL IT
OFF. AND THANK YOU ALL FOR YOUR
TIME. THANK YOU SIR. PLEASE GO
AHEAD YES A GOOD AFTERNOON.
CHAIRMAN DAILY MY NAME IS ALSO
THE AUTHORITY. ON THE CURRENT
PRESIDENT OF THE CALIFORNIA
PENAL SCHOOL BOARD ASSOCIATION
REPRESENTING MORE THAN SEVEN
HUNDRED. LATINO SCHOOL WHERE
MEMBERS IN THE STATE OF
CALIFORNIA I WANT TO. THANK AND
I ACKNOWLEDGE COMMISSIONER
LADA- FOR- THE SPIRIT OF WHAT
HE'S TRYING TO DO IN TERMS OF
EXPANDING FAIRNESS AND
AFFORDABILITY IN CAR INSURANCE
AS A SCRIBE AND VOTER APPROVED
PROP ONE OF THREE I WANNA. PUT
EMPHASIS ON VOTER APPROVED PROP
ONE OF THREE- AS THE HIS STAFF
MENTIONED TODAY THIS IS THE
FIRST STEP IN MAKING. A GROUP
DISCOUNTS ACCESSIBLE TO ALL
CALIFORNIANS AND I THINK THAT'S
SOMETHING THAT- IS SOMETHING WE
SHOULD SUPPORT- ON. THE
POPULATION THAT WE REPRESENT AS
WELL IT HAS BEEN HISTORICALLY
UNDER SERVED AND UNDER
PRIORITIZE AND STATE POLITICS
AND TO MAKE SURE THAT POLICIES
WHEN FORWARD. ONES THAT ARE
INCLUSIVE A TO THE LATINO
COMMUNITY ESPECIALLY- LOW
INCOME AND WORK AS PEOPLE. ARE
ONCE INTO THE NETWORK PURCHASE
THE- WE SERVE OUR HAND ON A
GROUP THIS. TO THE LOW CHURCH
AND CO OR- THE PROSPECT OF LIEU
DISCOUNTS AS A- I JUST. NERVE
MANY YEARS. FOR A THE DATE. I
WE MOVE. RACIAL AND SOCIAL
ECONOMIC EQUALITY AND SO DO WE-
ARE WE ARE ASKING IS THAT YOU
TAKE OUR VOICES INTO ACCOUNT.
THE NEW PROPOSED REGULATIONS
MAKE IT TOO EASY FOR PEOPLE WHO
NEED AND DEPEND ON AFFINITY
GROUP DISCOUNTS TO SLIP THROUGH
THE CRACKS. THANK YOU FOR YOUR
TIME AND I HOPE THAT WE CAN
WORK TOGETHER ON THIS TO MAKE
SURE THAT THESE POLICIES DON'T
HURT THE PEOPLE- THAT WE SHOULD
BE HELPING OUT THANK YOU VERY
MUCH THANK YOU SIR. PLEASE GO.
GOOD MORNING MISTER CHAIR
MEMBERS OF THE COMMITTEE MY
NAME IS DANA ALLEN ON THE
EXECUTIVE DIRECTOR OF THE
UNIVERSITY OF CALIFORNIA DAVIS
CAL AGGIE ALUMNI ASSOCIATION
I'D LIKE TO THANK YOU FOR THE
OPPORTUNITY TO SPEND A FEW
MINUTES WITH YOU HERE TODAY. TO
SHARE A FEW POINTS IS. SPINNING
THE ALUMNI INDUSTRY FOR MORE
THAN TWENTY YEARS. AND SHARE
SOMEPERSPECTIVES ON THE VALUE
THAT AFFINITY DISCOUNT PROGRAMS
BRING TO ALUMNI ASSOCIATIONS.
AND TO ALUMNI. WE HAVE FOUND
THAT RECENT GRADUATES WERE JUST
DURING THE WORK FORCE OR ABLE
TO TAKE ADVANTAGE OF THE
BENEFITS OF DISCOUNTS AND AS
COST OF LIVING INSURANCE COSTS
AND CERTAINLY OTHER MANDATORY
EXPENSES ARE EVER GROWING
CERTAINLY HERE. FOR YA THOSE
WHO ARE JUST START A CAREER
PATH. SHE THESE DISCOUNTS FOR
NECESSARY EXPENSES SUCH AS
INSURANCE. ADDITIONALLY FOR IN
ALMA MATER IF WE CAN BEGIN TO
PROVIDE THESE DISCOUNTS AND
THESE PIECES THROUGH OUR
ORGANIZATIONS. THAT HELPS BUILD
AFFINITY BETWEEN A LOT NINETY
INSTITUTION AND THAT HELPS
PROVIDE FEWER EXPORT ENGAGEMENT
FOR ONE'S ALMA MATER. WITH THE
SERVICE THAT WE ARE ABLE TO
PROVIDE BY VIRTUE OF HAVING
PARTNERSHIP SUCH AS THESE WE
CAN MAKE. AND OFFER. TO OUR
ALUMNI INTO OUR FUTURE ALUMNI
WHICH IS THE MISSION OF OUR
ORGANIZATION. TO CURTAIL THE
ABILITY TO PROVIDE THESE
PROGRAMS BY EITHER THE PROVIDER
OR THE ORGANIZATION WOULD HAVE
A TRULY DEEP IMPACT ON THE
PROGRAMS AND SERVICES THAT WE
ARE ABLE B. AND SO CREE
JUDICIAL REVIEW THE- ON THE
PROPOSED CHANGES TO THINK ABOUT
THESE POINTS AS WELL THE OTHER
DAY TO DAY THANK YOU. VERY MUCH.
PLEASE GO AHEAD. GOOD MORNING
MISTER CHAIR AND MEMBERS OF THE
COMMITTEE MY NAME IS AMY
SCHMIDT AND LIKE THE PRECEDING
SPEAKER SAID I'M HERE TO SPEAK
ON BEHALF OF RECENT COLLEGE
GRADUATES BUT FROM THE OTHER
SIDE OF THE FENCE I'M A
GRADUATE FROM THE UNIVERSITY OF
SOUTHERN CALIFORNIA LIKE MOST
INDIVIDUALS FROM MY GRADUATING
CLASS I'VE STRUGGLE TO FIND
FULL TIME WORK IN MY FIELD
FORCING ME TO JUGGLE MULTIPLE
TEMPORARY PART TIME JOBS JUST
TO MAKE ENDS MEET. HOWEVER
AVING AFFINITY GROUP DISCOUNTS
AVAILABLE TO ME AS AN ALUM OF A
C. IS CRITICAL TO ENSURING THAT
I'M ABLE TO AFFORD MY CAR
INSURANCE WHICH IS CRUCIAL WHEN
I SPEND A LARGE PART OF MY DAY
GETTING FROM GIG TO GIG THESE
PROPOSED REGULATIONS WERE
DRAFTED IN AN ATTEMPT AT
LEVELING THE PLAYING FIELD WHEN
IT COMES TO WHO QUALIFIES FOR
AFFINITY GROUP DISCOUNTS.
HOWEVER THEY ARE MY OPTICALLY
NEARING THE SCOPE AND
DEMONIZING BENEFICIARIES OF
AFFILIATED GROUPS RATHER THAN
CREATE MORE AWARENESS AND
ACCESS WHEN A LOT OF THE
POPULATION WITH COLLEGE DEGREES
STUDENT LOAN PAYMENTS TO MAKE
EVERY MONTH ON AND DOUBLES
THREE IS GETTING PAY. I CAN
AFFINITY GROUP DISCOUNT. BOB I
KNOW OF COLLEGE GRADUATES WHO
HAVE TO CHOOSE BETWEEN BUYING
GROCERIES AND PAYING THEIR
PREMIUMS EVERY MONTH. I'M AN
ALUMNA AND MY COLLEGE DEGREE
DOES AFFORD ME THE PRIVILEGE
QUALIFYING FOR THIS DISCOUNT.
BUT HAVING A COLLEGE DEGREE IN
TWENTY TWENTY DOESN'T
NECESSARILY EQUATE TO
SUSTAINABLE INCOME. THIS
DISCOUNT MATTERS TO ME AND
COUNTLESS COLLEGE GRADUATES WHO
OFTEN LIVE WITH THREE TO FOUR
OTHER PEOPLE JUST TO MAKE ENDS
MEET. WHILE I APPRECIATE MR
MARTINEZ AND MR HANLEY'S
CONCERNS FOR DIVERSITY I WOULD
ASK THEM TO EXPAND THEIR VIEW
TO ALL COLLEGE GRADUATES.
PARTICULARLY THE ONES LEAVING
SCHOOL TO MARKET OF SMALLER
SALARIES AND RISING RUNS.
INSTEAD OF SHRINKING THE
AVAILABILITY OF SERVICES WE
EDUCATED MMHM WE NEED TO
EDUCATE MORE PEOPLE ABOUT HOW
TO USE THEM. EQUALIZING THE
PLAYING FIELD MEANS GIVING
EVERYONE A CHANCE AT BAT NOT
TAKING AWAY THE BATON TIGHTLY
THANK YOU FOR THE OPPORTUNITY
TO SPEAK THANK YOU MISS SCHMIDT.
PLEASE GO AHEAD HELLO MY NAME
IS PORSCHE FIGURING I AM
ADMINISTRATIVE ASSISTANT AT
JUBILEE AIR MINISTRIES- BUT
PASTOR RONNIE WALTON- AND AS AN
ADMINISTRATOR THERE ARE NO-
THAT THE PARISHIONERS THERE
LOOKED TO THE CHURCH FOR
SUPPORT IN TIMES OF PERSONAL OR
FINANCIAL DISTRESS AND THAT'S
WHAT I'M HERE TO POST. THAT THE
CALIFORNIA WHEN OF INSURANCES
PROPOSAL TO REGULATE AFFINITY
GROUP DISCOUNTS. MANY OF THE
PRISONERS RELY ON THESE
DISCOUNTS TO MAKE ENDS MEET THE
MONEY THEY SAY PER YEAR WITH
THIS WITH THESE DISCOUNTS MAY
NOT SOUND LIKE MUCH TO SOME BUT
SAID THEM IT CAN MEAN THE
DIFFERENCE. BETWEEN PAYING THE
RENT AND KEEPING THE LIGHTS ON.
I AM CONCERNED ABOUT WHAT WILL
HAPPEN IF THESE REGULATIONS GO
INTO EFFECT I AGREEMENT WITH
WHAT. ARE SAYING TODAY EXPAND
ACCESS THAT MORE PEOPLE CAN GET
THESE DISCOUNTS ON THEIR CAR
INSURANCE. THE WAY THESE
REGULATIONS ARE CURRENTLY
WRITTEN WILL ONLY MAKE IT
HARDER TO DETERMINE WHO
QUALIFIES THIS ISN'T EXACTLY
ENDING DISCRIMINATORY
PRACTICES. I URGE THE
COMMISSION TO RETHINK THEIR
POSITION AND RECOGNIZE THE
BENEFITS THE LOW INCOME
CALIFORNIANS AND CALIFORNIANS
OF COLOR RECEIVED IN PART
THANKS TO THESE TYPES OF
PROGRAMS THANK YOU. THANK YOU
MISS GREENE. GOOD MORNING MY
NAME IS MARC JACOBS I'M
DIRECTOR OF A NONPROFIT
ORGANIZATION CALLED THE YOUTH
EXPLOSION LLC LIVE LOVING CARE.
I'M ALSO EMPLOYMENT SERVICES
ADVISER FOR THE COUNTY AFFECT
MENTAL DHEA SYSTEMS WHERE I
DEAL WITH EMPLOYERS FAMILIES
WHO ARE STRUGGLING NICK THE
THEM WITH THE RESOURCES SUCH AS
EMPLOYMENT. AND OTHER ASPECTS
OF THEIR OF THEIR SUCCESS THAT
THE A TRY THAT THE STRIVE FOR.
AND I'M WITH. A OF STILL FULL
FOR. THE SERVER OVER A MILLION
LAST YEAR. OKAY A WE'RE MISSION
IT IN WHICH TO STOP FOR MORE WE
TRYING TO BUILD THESE
CORNERSTONE. THE FAMILIES
PROVIDE ACCESS TO THEIR KEY.
FOR A- AND SO REPRESENT. FEW
HUNDRED STUDENTS IN MONEY
CLINIC UC DAVIS. STACKS DATE
AND LOS RIOS COLLEGES AND
BASICALLY THEY'RE VERY
CONCERNED ABOUT WHAT'S GOING ON
HERE. THEY WANT TO HAVE ACCESS
TO THE INSURANCES LOT OF THE
MORE FIRST TIME STUDENTS. FIRST
ONE IN THE FAMILY TO GO TO
COLLEGE. SIX CITING IS A GREAT
EXPERIENCE DON'T TAKE THAT AWAY
IS ALREADY TOUGH ENOUGH FOR
MANY OF THESE FAMILIES TO
AFFORD. TO SEND THEIR KIDS
INSTITUTIONS WE HAVE OTHER
BARRIERS SUCH AS HOUSING.
TUITION FOOD COSTS THANK
GOODNESS AB TWO FOURTEEN BY
SHIRLEY WEBER ALLOWED STUDENTS
TO HAVE ACCESS TO FOOD BECAUSE
MANY OF THEM WERE STRUGGLING.
WE ALSO HAVE 12% OF STUDENTS
WHO ARE HOMELESS. 24%
EXPERIENCE HUNGER. THIS
COMMISSION VENUS GOING ON IS
GOING TO GET A LITTLE EMOTIONAL
ABOUT IT BECAUSE THEY HAVE GOT
A LOT OF PHONE CALLS WHILE I
WAS SITTING HERE AND WHILE I
WAS AT THE AT OUR EVENTS THEY
ARE CONCERNED ABOUT THIS I
REALLY HEAVILY CONSIDER DON'T
PUT THE FOOT ON THE THROAT OF
THE FUTURE PLEASE ALLOW THE
STUDENTS SORRY TOUGH ENOUGH TO
TRANSITION INTO THE SOCIETY.
AND ECONOMY. PLEASE DON'T MAKE
IT HARDER. THANK YOU THANK YOU
SIR. PLEASE GO AHEAD SIR A GOOD
MORNING CHAIRMAN DALY AND
MEMBERS OF THE COMMITTEE MY
NAME IS REVENUE THE WHITE
WILLIAMS AND I LEAD NEW GENESIS
MINISTRIES AND IN CALIFORNIA
THANK YOU FOR TAKING THE
OPPORTUNITY IN THE TIME- TODAY
TO REVIEW THE- DEPARTMENT
MANAGER THIS IS POST. FOR YOU
ARE EIGHTY IS MY FIRM BELIEF
FRANKLY. ARE THAT THE AUTO AND
HOME INSURANCE DISCOUNTS THAT
ARE AVAILABLE THROUGH THE A
VERY SIMPLE INFINITY PROGRAMS
OF BENEFICIAL TO EVERYONE. THAT
IS PARTICULARLY INVOLVED IN SO
WE ASK THE QUEUE OUR REVIEW
THOSE PROPOSALS AND NOT TO
ELIMINATE. AFFINITY PROGRAMS-
THAT ARE EXISTING ESPECIALLY
FOR LOW TO MODERATE INCOME
INDIVIDUALS AND FAMILIES. MANY
INDIVIDUALS ARE STRUGGLING TO
MAKE ENDS MEET AS IT IS. AND
GETTING RID OF THOSE PROGRAMS
ARE MAKING IT HARDER FOR THEM
TO ACCESS THOSE PROGRAMS WOULD
ONLY MAKE. THEIR LIVES MORE
COMPLICATED SO WE ASK THAT YOU
WOULD WE JUST INSTEAD OF
REGULATING THESE PROGRAMS. ARE
OUT OF EXISTENCE BUT YOU
PARTNER WITH ORGANIZATIONS AND
REACH OUT TO THEM. RIDE MORE
OPPORTUNITIES FOR THE RIVER TO
SORT OF. IN BETTER THE ECONOMIC
CONDITION OF PEOPLE THANK YOU
SO MUCH FOR YOUR TIME THANK YOU
SIR. JENNY DOES OPENING GUY
YOU'LL BE TWO GUYS ON EVERY
LITTLE. THE NAVY LOCAL OAKLAND
SHOWN COMMON UNCLE WHILE- CHINA
FOR CHEN AND- IN CALIFORNIA DID
WAS SEEN AS A- YOU'LL NOT YOU
TO KIND OF THE TIMING AYE UBC.
MR CHAIRMAN. MEMBERS OF THE
COMMITTEE. THANK YOU VERY MUCH
FOR ALLOWING ME HERE TO BE ABLE
TO SPEAK. ABOUT ON THE INVASION
OF POVERTY. THE MIX COMMITTEE
THE COMMITTEE SO ABOUT POVERTY
TO TALKING ON THE
REPRESENTATION TALKING ABOUT
EVERYTHING ELSE OF. THERE ARE
AFFECTED BY THE THIS OF
REGULATIONS ARE WE TALKING
ABOUT HERE TODAY MY NAME IS
ILLEGAL BUT IT THOUGH AND ON
THIS AND I'M- HERE SPEAK TODAY
ON BEHALF OF THE AMERICAN GI
FORM. OF FUN ON EDUCATION
FOUNDATION WE ARE ORGANIZATION
THE REPRESENTS VETERANS ACROSS
THE STATE SPECIFICALLY THE ONES
SPEAKS SPANISH AND MAKES THAT
GOAL ARE THE POPULATION THAT WE
SERVE OUR THE LOW INCOME. THE
NO ENGLISH SPEAKING. RESIDENTS
AND THE ARE THE VERY ONES THE
COMMISSION OR LADA HE
SUPPOSEDLY TRYING TO HELP BY.
ALTERING THE WAY THE AFFINITY
GROUPS THESE GIRLS PROGRAMS ARE
ALLOWED TO OPERATE IN
CALIFORNIA. BUT WE FEEL VERY
STRONGLY THAT THIS PROPOSED
REGULATIONS WILL ONLY HURT OUR
COMMUNITY BY MAKING IT MORE
DIFFICULT TO UNDERSTAND WHO CAN
AXES THIS AFFINITY GROUP
DISCOUNTS. MANY OF OUR
RESIDENTS BIG MISTAKE WILL YOU
HURT ME ARE TALKING AT THE
BEGINNING MANY OF OUR COMMUNITY
IS THE HARPER BEACH HOUSE MIXED
FEELINGS ABOUT TRUST IN OUR
GOVERNMENT INSTITUTIONS THESE
HIGH LEVEL REGULATIONS WHICH
WAS HEARD THAT THIS DIVIDE AND
MAKE IT IMPOSSIBLE FOR SOME TO
REALIZE. THEY QUALIFY FOR ANY
INSURANCE DISCOUNTS ARE WE URGE
THE COMMITTED TO RECONSIDER
THIS REGULATION WHICH WORK
TOGETHER TO DETERMINE A BETTER
PATH FOR INSTEAD OF PASSING
REGULATIONS THE WILL HAVE
NEGATIVE LONG TERM IMPACTS ON
THOSE WE WORK WITH IN SANTA
MARIA CALIFORNIA. IT'S IN SANTA
BARBARA COUNTY IN VENTURA
COUNTY BAKERSFIELD FRESNO ALL
THROUGHOUT CALIFORNIA THANK YOU
VERY MUCH THANK YOU MISTER AND
THIS THANK YOU MUCH. WE HAD SIR
MORNING AND ARE COMMITTEE
MEMBERS MY NAME IS JULIO THE
MY- AND I'M ALSO REPRESENTATIVE
OF THE AMERICAN GI FORUM. IN
ADDITION TO REPRESENTING
VETERANS IS REGAL MENTIONED WE
ALSO WORK WITH SENIORS LOWER
INCOME SPANISH SPEAKING AND
MISS THAT GOES BEGIN RESIDENTS
IN SANTA MARIA PARTICULARLY
COUNTY- I'M HERE TODAY BECAUSE
I FEEL THAT MY VOICE IN THE
VOICE OF MANY COMMUNITY
LEADERS. DID NOT RESONATE WELL
AS OF THE MOMENT OF INSTANCE
DRIVE REGULATIONS WE SENT THE
DEPARTMENT A LETTER SEPTEMBER
ONE AND YOU'RE A VERY AND HERE
WE ARE TODAY ONCE AGAIN
DEFENDING. THE USE OF AFFINITY
GROUP DISCOUNTS WELL LIKE TO
REITERATE TO THE- THAT ANY
DISCOUNTS SPECIALLY WHEN YOU'RE
LIVING PAYCHECK TO PAYCHECK
THERE'S- AFFINITY DISCOUNTS
AVAILABLE PEOPLE IN MY
COMMUNITY JUST HI. OUR OUR SURE
THREE YEAR. IN A WAY THESE
PROGRAMS WILL ALL THOSE WHO
HAVE BEEN MY COMMUNITY AND WITH
THE NO ONE IS TAKE IN OUR IN
SIR. AND THE WILL CONTINUE FOR
THE REGULAR. THE THEY ARE BEST
FOR US WE ARE HERE TO SPEAK FOR
OUR COMMUNITY AND HOPE THE
COMMITTEE WILL NOT ALLOW FOR
THE CD I. TO TAKE OUR DISCOUNTS
AWAY- THANK YOU VERY MUCH AND I
AM- SPEAKING ON BEHALF OF THE
COMMUNITY THE MYSTICAL
COMMUNITY SENIOR CITIES BANISH
MONOLINGUAL SPANISH SPEAKERS OF
THE SANTA BARBARA COUNTY. THANK
YOU THANK YOU SIR. GOOD
AFTERNOON CHAIRMAN. OF THE
COMMITTEE MY NAME IS ALAN
ANDERS I'M ALSO HERE
REPRESENTING THE AMERICAN GI
FORUM EDUCATIONAL FOUNDATION. I
LIKE TO RATE REAR. WORDS ALEX
WE'RE A SMALL. ASIAN THAT WORKS
WITH THE- SUB NATIONAL NUMBER
OF PEOPLE THAT HISTORICALLY ON.
UNDERSERVED COMMUNITIES. THE
CALIFORNIA DEPARTMENT OF
INSURANCE HAD GOOD INTENTIONS
EQUITY. EQUITY MEANS GIVING
EVERYONE WHAT THEY NEED TO BE
SUCCESSFUL. CIRCUMSTANCE THAT
MEANS CREATING MORE
OPPORTUNITY. FOR COMMUNITIES OF
COLOR TO ACCESS. DISCOUNTS
HOWEVER. INSTEAD OF LISTENING
TO GROUPS LIKE OURS IN COMMENTS
OTHERS WERE REPRESENTED HERE.
HAVE TOLD THE COMMISSIONERS
TIME AND AGAIN THAT THESE
DISCOUNT DISCOUNTS WORK. THE
DEPARTMENT HAS PROCESS EVEN
MORE RESTRICTIVE REGULATIONS
THAT MAKE IT EVEN MORE
DIFFICULT TO RECEIVE THAT THIS
DISCOUNT. WELL THE DEPARTMENT
CLAIMS THE VETERAN GROUPS WILL
BE A FACT. WE NOTE. THE MY ONLY
APPLY TO LARGER MORE
INFLUENTIAL VETERANS GROUPS
THAN OUR OUR OWN SEEMS CAMERA
FOR ACTIVE TO WHATEVER YOU'RE
TRYING TO ACHIEVE DOESN'T. I
HOPE THAT THE COMMITTEE WILL
TAKE INTO CONSIDERATION OUR
TESTIMONY TODAY PLEASE ENOUGH
TAKE AWAY OUR ACCESS AFFINITY
GROUP DISCOUNTS. THANK YOU.
THANK YOU VERY MUCH SIR. MY GOD
GOOD MORNING THANK YOU FOR
ALLOWING ME TO SPEAK TODAY MY
NAME IS GLORIA COLOSSAL AND I
REPRESENTED BUT DORIAN AND
SALVADORAN COMMUNITY AMONG
OTHER TWENTY FINE IMPROVE HIS
THAT I MENTOR. I'M SALVADORAN
AND I WAS ON VACATION IN MY
COUNTRY THIS LAST FEW DAYS A
SHORT MY VACATION WITH MY
FAMILY. TO BE HERE TODAY. THAT
WAS ORIGINALLY IMPORTANT. TO
FLAUNT THIRTY FIVE HUNDRED
MILES AWAY. NOW I KNOW THAT I
MADE THE RIGHT DECISION. I HAD
BEEN WORKING IN THE LATINO
COMMUNITY FOR OVER FORTY YEARS.
AND I KNOW FIRST HAND THAT MANY
INDIVIDUALS ARE ACTIVELY
BENEFIT FROM THE SAVINGS OF
WHAT A BY THE AFFINITY PROGRAMS.
I'M SURE THAT THIS FACT COMES
TOO MUCH. TO THE DISDAIN OF THE
CONSUMER WATCHDOG HAD BEEN
AFTER THESE TYPES OF DISCOUNTS.
A LONG TIME AND YET WHEN THEY
PUBLISH STORIES OR PRESS
RELEASES GUESS WHO THEY CHOOSE.
THE C. E. ALL. CARMEN BELBER AT.
THEY COULD PUSH ME OUT SOMEBODY
SOMEONE LIKE ME. I WOULD
EXPRESSED MY CONCERNS I WOULD
TELL THEM. EXACTLY WHAT I DON'T
HAVE TIME TO SICK TODAY. IF
ELIMINATED THIS I CAN'T THESE
DISCOUNTS CREATES MORE EQUITY
WHEN IT COMES TO INSURANCE COST.
IT'S STILL WATCHDOG. IT'S STILL
THINKING DIFFERENTLY I REALLY
APPRECIATE EVERYONE WHO STATED
IT BECAUSE SOME OF YOU LEFT I'M
SURE THEY HAVE OTHER
COMMITMENTS. BUT I GOT A LETTER
TO NOT DEEPLY I'M DEEPLY
DISCOURAGED BY THE COMMISSION
OF RECOMMENDATIONS ESPECIALLY
AFTER MYSELF AND MANY MANY
OTHERS HAVE REACHED OUT TO THEM
FOR SEVERAL MONTHS WITH OUR
HEARTFELT CONCERNS ABOUT THE
NEGATIVE IMPACT OF ELIMINATED
THIS DISC PROGRAM. YOU TLL ME
THAT CAN HELP US. I AM WITH
THIS MY PEOPLE HISPANIC NOT
THOUSANDS MILLIONS OF PEOPLE
EVERY DAY THAT HAS BEEN GOOD TO
ME AND I HAVE THE TIME TO WORK
WITH THEM HI BUT INITIAL MY
TIME. I TOLD AT THE BEGINNING
OF REPRESENT OVER TWENTY FIVE
NONPROFITS. I DON'T DO THAT FOR
A LIVING I DON'T MAKE ANY MONEY
AND- I HELP THEM. THANK YOU SO
MUCH THANK YOU VERY MUCH.
PLEASE GO AHEAD. HELLO DANIEL
KENDO KAISER ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION WE ARE A GROUP OF
THIRTEEN LEGAL AID SERVICE
PROVIDERS FROM THROUGHOUT THE
STATE I WOULD LIKE TO LINE MY
SUPPORT COMMENTS WITH MY
COLLEAGUES FROM THE CONSUMER
FEDERATION OF CALIFORNIA THANK
YOU. THANK YOU. PLEASE GO AHEAD
SIR YEAH MY NAME'S ROBERT
BLAME- I WORK AT THE UNION
GOSPEL MISSION WERE. WE'RE AT
AN ORGANIZATION THAT HELPS LOW
INCOME FAMILIES- ELDERLY AS
WELL AS THE HOMELESS- I'VE BEEN
WITH GEICO FOR A NUMBER OF
YEARS NOW. AND I JUST WANNA SAY
THAT THAT THE DISCOUNT MEANS A
GREAT DEAL TO NOT ONLY TO ME
BUT- MANY OF THE PEOPLE THAT I
WORK WITH AND THAT I WOR FOR-
SO I WANNA LOSE IT AND I DO
WANT TO THANK YOU THERE WAS
SOME SOME VERY GOOD QUESTIONS
PUT FORTH BY THIS PANEL TODAY
AND I APPRECIATE THAT TO CLOSE
THAT YEAR. YOUR CONCERN IS FOR
THE BOTH OF THANK YOU FOR WHAT
YOU. THANK YOU SIR FOR YOUR
PARTICIPATION. PLEASE GO AHEAD
HI MY NAME IS VINCE HARRIS I'M
A SMALL BUSINESS OR I WANT TO
SAY THAT I WAS TOUCHED BY MISS
SCHMIDT AND OF THE WORD SHE HAD
TO SAY AS A COLLEGE STUDENT AND
WHAT SHE'S GOING THROUGH- AND
SO MANY OTHERS. THIS IS AWESOME
YOU KNOW AND- I'M JUST AMAZED
AT THE DEPARTMENT OF INSURANCE.
SERIOUSLY THAT THEY WOULD WANT
TO DO THIS WHERE IS THIS COMING
FROM REALLY GUYS. AND WHERE THE
NUMBERS WHERE ARE THE NUMBERS I
DIDN'T HEAR ANY NUMBERS COMING
FROM ANYWHERE I DIDN'T HEAR
ANYTHING ABOUT LOSS RATIO YOU
KNOW I LIVE IN A WORLD LOSS
RATIO. WHERE IS THE GUYS BUT
YOU WANT TO TAKE AWAY FROM
THESE GOOD PEOPLE SERIOUSLY.
COLLEGE STUDENTS MY WIFE'S A
BEAUTICIAN. I WOULD TELL YOU
WHAT SHOULD MAKE A WHOLE LOT OF
MONEY IS WITH A BEAUTICIAN. AND
SHE CAN'T WORK ANYMORE BECAUSE
NOW SHE HAS A MALADIES CAN'T
WORK BUT YOU WANT TO TAKE THAT
AWAY YOU KNOW WHAT I'M WITH
GEICO SIR PLEASE DIRECT YOUR-
COMMENTS I'M WITH GUY MAYBE
WELL IN PLEASE- YOU HAVE A
MICROPHONE SO YOU DON'T NEED TO
RAISE YOUR VOICE AND I'M SORRY.
BUT YOU KNOW WHAT WHEN I HEAR
THESE FOLKS COME THROUGH HERE.
OUR MOTION LIKE THEY ARE. WE
NEED TO HEAR THIS. WE NEED TO
LISTEN TO THIS. AND WE NEED TO
HAVE SOMETHING REAL AND
FUNCTIONAL AND IT NEEDS TO
MEANS SOMETHING BEFORE YOU
START TAKING AWAY DISCOUNTS
FROM PEOPLE WHO CANNOT AFFORD
IT. I THANK YOU AND I WANT TO
ECHO WHAT WHAT THE GENTLEMAN
JUST SAID ABOUT SOME OF THE
COMMENTS I HEARD FROM A COUPLE
OF YOU THAT REALLY MADE A LOT
OF SENSE THIS MORNING YOU
REALLY DID AND I APPRECIATE YOU
AND I APPRECIATE YOU. THANK YOU
VERY MUCH SIR. HI GOOD MORNING
MY NAME'S MARK EVANS- MAY-
SALES MANAGER AT A RADIUS TO
LOCAL RADIO STATION MY WIFE IS
A- MINISTRY OF ASSISTANT LOCAL
SCHOOL DISTRICT. AND SEVERAL
YEARS AGO WE WENT TO SHOP OR
HOME AND AUTO INSURANCE LIKE SO
MANY PEOPLE AND- YOU KNOW I
FOUND IT WAS PRETTY
COMPETITIVE. YOU KNOW IN IN
THIS THING MAJORITY THE PEOPLE
HERE THIS MORNING I'M BEGINNING
TO WONDER I'VE IN ALL WHY ARE
WE EVEN TALKING ABOUT THIS BUT-
ANYWAY MY POINT IS I ARRIVED AT
MY CURRENT KERRIER. BECAUSE OF
PRICE AND A LOT OF THAT WAS DUE
TO THE GROUP DISCOUNT AND I
DIDN'T HAVE TO PAY ANYTHING TO
JOIN SOME MY ORGANIZATION TO DO
IT SO I WOULD SUGGEST KEEPING
THE GROUP DISCOUNT I THINK IT'S
IMPORTANT THANK YOU APPRECIATE
IT. THANK YOU SIR. MORNING TEAR
MY NAME'S ANGELICA SAID THAT I
ACTUALLY AM INSURED RECEIVING
THE DISCOUNT I WORK FOR SMALL
BUSINESS AS AN ASSISTANT
MANAGER- JUST LIKE ANYONE ELSE
YOU WORK REALLY HARD TO GET TO
WHERE YOU'RE AT TODAY AND I
JUST WANNA ASK THAT YOU DON'T
TAKE. COUNTY WAY AND ASKS TO
GET STRONG PROPOSED THANK YOU
THANK YOU MA'AM. WHAT IN A
ANTHONY OR TO WITH THE-
QUESTION PLACE TO RATHER- I
WOULD LIKE YOU GUYS TO
RECONSIDER. NOT TO TAKE THIS
KIND OF WAY- IT REPRESENTS A
LOT OF- EMPLOYEES FOR THE
GOVERNMENT. SO BRIGITTE THANK
THANK YOU SIR THANK YOU VERY
MUCH. THANK YOU GOOD MORNING
MICHELLE PERICYTES SPEAKING ON
BEHALF OF PUBLIC ADVOCATES WE
SUPPORT THE DEPARTMENT OF
INSURANCE'S REGULATIONS. LOWER
INCOME CALIFORNIANS WILL
BENEFIT WHEN RATES ARE BASED ON
DRIVER SAFETY AND NOT ON POLICY
HOLDER WEALTH THANK YOU. GO
AHEAD SIR GOOD AFTERNOON MY
NAME IS RABBI JONATHAN KLEIN
WITH HOPE FOR ALL HELPING
OTHERS PROSPECT ANONYMOUSLY YOU
KNOW MY GRANDFATHER WHEN HE
FELT VERY WEAK THIS WAS BACK IN
THE FORTIES. HE HAD STRUGGLE
WITH HIS BODY AND THE ADVICE-
FOR HIS HEART PROBLEM WAS TO
DRINK A LOT OF CREAM. AS IN TO
STRENGTHEN HIMSELF AND TO
FATTEN HIMSELF UP. OBVIOUSLY
THAT WAS THE MEDICINE THAT WAS
ABSOLUTELY CONTRARY TO
EVERYTHING THAT HE SHOULD HAVE
DONE HE HAD A HEART ATTACK AND
HE DIED. SOMETIMES SOLUTION IS
SOMETIMES PROBLEMS ARE EGGNOG
ARE RECOGNIZED AND I THINK THAT
COULD THE DEPARTMENT HAS
IDENTIFIED A CHALLENGE OF A
LACK OF EQUITY BUT THE SOLUTION
IS NOT TO JUST TAKE IT AWAY
FROM EVERYONE. THE SOLUTION IS
TO GO JUST IN THE OPPOSITE
DIRECTION DOUBLE DOWN ON THE
NOTION THAT AFFINITY GROUPS ARE
A GOOD THING THIS STATE FOR
BUILDING SOCIAL CAPITAL FOR
STRENGTHENING OUR COMMUNITIES
SO FOR INSTANCE YES WE'VE
HEARD. SOME YOU HAVE A FIT IN
THIS BECAUSE THEY HAVE BEEN IN
A TO DO SO BY THE STRUCTURE IN
PLACE BUT THERE ARE OTHER
GROUPS THAT HAVE NOT BEEN
ENABLE THAT HAVE NOT BEEN
BUILT. INTO THIS IDEA THIS
PROGRAM SO FOR INSTANCE MANY OF
MY COLLEAGUES HERE WHO ARE
CHURCH LEADERS HOW MANY
CHURCHES HAVE BEEN APPROACHED
BY THE DEPARTMENT OF. INSURANCE
TO. DETERMINE HOW TO HOLD
AFFINITY GROUP OUT OF THEIR
MEMBERSHIP. YOU KNOW. WHAT THE
WITH THE SET WITH THE CRUSHING
OF THIS SYSTEM RATHER LET'S
BUILD IT UP INTO A ROBUST ODD
OF THE ACCOUNT. I'M ALL ALIVE
YOUR ROOM. MISTER COOL BECAUSE
I DO QUESTION HOW THE
DEPARTMENT CAN MOVE FULLY
FORWARD WITH THIS. SIDE OF THE
WILL OF JUST LET IN THE PROCESS.
ALSO SAY I'M GOING. MR GIBSON'S
PER. THAT REALLY THIS IS A-
CHIU. NOT ABOUT SOME SORT OF.
AREAS PRACTICE OF AN INDUSTRY
THAT THE END OF THE DEPARTMENT
CAN CAN REGULATE IN A MUCH
BETTER WAY AND THAT WOULD MEAN
GIVING MORE PEOPLE ACCESS NOT
LAST THANK YOU THANK YOU SIR.
PART SEVEN WITH AMERICAN
PROPERTY CASUALTY INSURANCE
ASSOCIATION WHILE THANK THE
COMMITTEE FOR HAVING A HEARING
TODAY IT'S ALWAYS NICE TO SEE
SAID AS A DEMOCRACY AND ACTION
I THINK THIS COUPLE THINGS THAT
NEED TO BE POINTED OUT. ALL AS
ASSEMBLYMEMBER COOLEY POINTED
OUT PROBLEM THREE ACTUALLY
ALLOWED THE CREATION OF
FICTITIOUS GROUPS ALSO THE BY
REMORSE FOR THE CONSUMER GROUPS
IS KIND OF INTERESTING THEY
WERE NOT ALLOWED PRIOR TO.
PROPOSITION PROPOSITION BOB ONE
OF THREE I THINK IT'S ALSO
IMPORTANT OUT AS ONE OF THE
INDIVIDUALS POINTED OUT OF THIS
IS A COMPETITIVE MARKETPLACE SO
IF YOU'RE IN AN AREA WHERE YOU
DON'T LIKE THE PRICE A DRIPPING
FROM INSURE GO TO. HER THANK
YOU MR SACK MR GIPSON HAS A
QUESTION AFRAID O. K. OR-
WELCOME THIRTEEN AND MEMBER I'M
ROSE MERRY SHE HIM PRESENT
CONSUMERS FOR AUTO RELIABILITY
AND SAFETY AND WE'VE SPONSORED
NUMEROUS- PIECE OF LEGISLATION
IN CALIFORNIA SINCE THIS.
NINETEEN EIGHTIES THAT HAVE
BEEN ENACTED TO IMPROVE
PROTECTIONS FOR CONSUMERS AND
WE SUPPORTED PROP ONE OH THREE
AND WE'VE OPPOSE IT TAX ON PROP
ONE OF THREE AND WE ARE IN
SUPPORT OF THE DEPARTMENT AND
ITS REGULATIONS. AND WE ARE IN
ALIGNMENT WITH THE CONSUMER
FEDERATION CALIFORNIA ON THIS
ISSUE. THANK YOU THANK YOU FOR
YOUR PARTICIPATION AND THAT
WILL CONCLUDE THE PUBLIC
COMMENT SECTION MISTER GIBSON
HAD A COMMENT OR QUESTION BUT
IS THAT A I JUST HAD A REAL
QUICK QUESTION I WANT TO. LET
THE MEMBERS OF THE PUBLIC NO I
APPRECIATE YOUR TESTIMONY- AND
I ALSO WANT TO SAY THAT THAT'S
THE REASON WHY WE HAVEN'T IS
INFORMATIONAL HEARING CANNOT
APPRECIATE THE CHAIRMAN FOR
BRINGING US ALL TOGETHER INTO
ONE EXPLORE- HERE BOTH SIDES
BUT ALSO WHAT THINK INSURANCE
COMMISSIONER. BECAUSE INSURANCE
COMMISSIONER IS DOING IS TRYING
TO DO EVERYTHING HE CAN TO
TRYING TO FIGHT OR FIX IT MAY
NOT BE. IN THE RIGHT WAY THAT
PEOPLE WANT TO BUT I THINK THAT
FOR HIM WHO HAS CERTAINLY BEEN
A TRAILBLAZER- AS A LEGISLATOR-
AND TRYING TO DO THE RIGHT
THING BY THE PEOPLE THAT'S
RESORT WE HAVE THIS
CONVERSATION HERE TODAY. AND
HIS OFFICE HAS ARTICULATED
THEIR WILLINGNESS TO MEET WITH
PEOPLE WHO HAVE DIVERSE-
SOLUTIONS OR DIVERSE VIEWS AND
TRY TO REACH A EQUITABLE
SOLUTION SO YOU HAVE THAT IN
THIS COMMISSIONERS SO I WOULD
CERTAINLY INVITES YOU TO ONE
GET THE CARS OF THE REPRESENT.
COMMISSION DAHLE. THAT THE
THINGS THAT AND YOUR- MR IN A-
I AGREE THE MAN. IN ON THE
SUBJECT IT'S A VERY IMPORTANT
SUBJECT FOR CONSUMERS. IN OUR
LARGE AND GROWING STATE SO
THANK YOU ALL FOR YOUR
PARTICIPATION THANK TO THE
COMMITTEE THANK YOU TO THE
COMMITTEE MEMBERS. AND I THINK
WE'RE DONE I KNOW THAT THERE'S
NO VOTES TO WERE RECORDS SO I
THINK WE CAN CONCLUDE THE
HEARING. UNLESS THE STAFFER
ATTORNEY SAYS IT'S A BAD IDEA I
THINK WE'RE GOING TO CONCLUDE.
OKAY ALL RIGHT THANK YOU ALL
APPRECIATE YOUR PARTICIPATION
AND THANK YOU TO THE APARTMENT
OF INSURANCE FOR. THE
PRESENTATION. WE ARE ADJOURNED.
I DON'T KNOW.