State : 58 Insurance Companies Request Rollback Exemptions, State Reports
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SAN FRANCISCO — Fifty-eight California insurance companies, including some major firms, have asked for exemptions from a 20% rate rollback under Proposition 103, the state Department of Insurance said today.
The rollback, to rates 20% below November, 1987, levels, was upheld by the state Supreme Court last Thursday. But the court said insurers could get exemptions as needed for a “fair return” on their investment, a standard to be determined by Insurance Commissioner Roxani M. Gillespie.
The ruling also allows insurance companies to put their rates into effect once they have filed with the department for an exemption. Amounts that Gillespie later rules are excessive must be refunded to customers.
Carey Fletcher, a spokeswoman for Gillespie, said companies seeking exemptions include Allstate, State Farm, Prudential and Liberty Mutual.
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