Proposition 103, passed by California voters in 1988, requires prior approval for property and casualty insurance rates.
In recent years, California has faced escalating wildfire risks, leading to substantial losses for insurers. The recent Los Angeles wildfires have caused unprecedented damage, with estimates suggesting they could become the costliest in the state's history.
In response to these challenges, major insurers like State Farm and Allstate have ceased accepting new homeowner insurance applications in California, citing increased wildfire risks and soaring construction costs.
The insurance industry's withdrawal has sparked debates about the sustainability of Proposition 103. Critics argue that the stringent regulations hinder insurers' ability to set rates that reflect current risks, leading to market instability
Will prop 103 be repealed or amended to allow changing insurance rates without prior approval by Insurance Commissioner?
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