WIAA & Alliance Support Less Regulation, Not More, and More Competition, Not Less
Rancho Cordova… On behalf of its members and members of the Alliance of Insurance Agents and Brokers, the Western Insurance Agents Association, a leading agent and broker trade association, submitted oral and written comments Tuesday to the California Department of Insurance, opposing the department’s regulation that would allow insurance carriers to require odometer readings and may require producers to verify odometer readings.
“WIAA and Alliance members generally support less regulation, not more, and more competition not less,” said Michael J. D’Arelli, Vice President, Legislative & Regulatory Affairs for WIAA, in his oral comments to the department Tuesday.
“The department’s proposal narrowly prescribes what methods an insurer may use to verify estimated mileage, tying insurers’ hands by limiting how they verify mileage,” said D’Arelli.
Under the proposed regulation, insurers would be permitted to require all applicants to provide their current odometer reading, and in transactions where the producer meets with the applicant, the insurer could require the producer to verify the odometer reading of the vehicle. This is in stark contrast to existing regulations, which provide that the “number of miles driven annually” means the estimated annual mileage for the policyholder vehicle during the 12-month period following inception of the policy.
In his testimony, D’Arelli stated that “Insurers and producers should not be mandated to use one method or another in verifying annual mileage, nor should they lose the ability to use the method that is most appropriate for their business practices.”
“California’s insurance consumers would be better served by a less restrictive regulatory scheme that places greater reliance on flexibility and competition. The California marketplace for auto insurance is fair and competitive today, and we believe that consumers are better served by allowing carriers the wide latitude they enjoy today in verifying annual mileage,” concluded D’Arelli.
The Western Insurance Agents Association (WIAA) represents approximately 900 independent property and casualty insurance agencies and brokerages, and approximately 10,000 licensed insurance professionals. Until December 31st, 2002, WIAA was an affiliate of PIA in California, Nevada, Arizona and New Mexico and operated as the PIA Group. WIAA no longer has any affiliation with the PIA.
WIAA has established a legal defense fund and is mobilizing agents statewide to defeat onerous legislation.
For more information regarding this news release, please contact: Michael J. D’Arelli – 916/425-9987
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