SB 289

Current law specifies general criteria on which insurance rates may be based,

such as past and prospective loss and expense experience. In addition, current law

specifies that, for the purpose of establishing rates, risks may be classified in any

reasonable way, except that classifications may not be based on race, color, creed, or

national origin and classifications in automobile insurance may not be based on

physical condition or developmental disability. Current law also provides that an

insurer may not use odometer reading data collected in the course of an inspection

as a factor in setting automobile insurance rates.

This bill additionally prohibits an insurer, when setting rates for automobile

insurance, from using as a factor the zip code of the residence of an insured. The bill

provides that an insurer may use as factors when setting automobile insurance

premium rates the driving record of any insured, the length of time that any insured

has been driving, and the number of miles that the insured vehicle is driven in a year.