The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. Under the act, rates and premiums for automobile insurance are determined based on specified factors, followed by other factors the Insurance Commissioner adopts by regulation. Existing law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a 2 3 vote.

This bill would prohibit an admitted insurer from increasing the premium or rate for automobile insurance based solely or partially on specified factors, including an insured’s decision to not engage or activate advanced autonomous driving systems, as defined. The bill would also prohibit an insurer from requiring the use of these systems as a condition of obtaining or renewing coverage and from applying surcharges or fees to nonusers that do not apply to users of those systems. The bill would authorize the commissioner to impose administrative penalties, not to exceed $10,000 per violation after notice and a hearing, and would authorize a policyholder to bring a private right of action for a violation of these provisions. The bill would make other related changes.