Consumer Federation of California

‘This is an important win for California voters. Prop 33 would raise insurance costs for millions of California motorists, including drivers with perfect driving records. Mercury Insurance Company billionaire George Joseph who is funding Prop 33 doesn’t want you to know that. The judge rejected the effort to censor the truth and agreed that the statements about the measure made by the AG and consumer organizations are not false or misleading.’

Background:

Judge Timothy Frawley with the Sacramento Superior Court heard arguments today (August 9, 2012) about a petition filed requesting language to be stricken from the official ballot pamphlet of Prop 33.

Prop 33 proponents challenged the following statement in the Attorney General’s title and summary:

‘Changes to current law to allow insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company.’

They also challenged statements in the arguments against Prop 33 submitted by consumer groups:

‘Proposition 33 unfairly punishes anyone who stopped driving for a good reason but now needs insurance to get back behind the wheel.’

‘Proposition 33 raises insurance rates for students completing college who now need to drive to a new job.’

‘Proposition 33 raises insurance rates for people who dropped their coverage while recuperating from a serious illness or injury that kept them off the road.’

‘Prop 33 deregulates the insurance industry, making big insurance companies less accountable.’

Judge Timothy Frawley rejected all arguments finding these statements are not false or misleading.

Contact:

Richard Holober, Executive Director
Consumer Federation of California
1107 9th Street, Suite 625, Sacramento 95814
(office) 916-498-9608
(cell) 650-307-7033