October 25, 2004

The American Agents Alliance congratulated State Senator Jackie Speier (D-Hillsborough) on the passage of SB 1500. Her legislation, which puts an end to debate over electronic auto insurance policy data sharing, as well as requiring the DMV to cancel vehicle registrations when legally mandated liability coverage is dropped, was signed by Governor Arnold Schwarzenegger on Sept. 30, 2004. The Alliance is a longtime partner with Senator Speier on the issue of mandatory enforcement, beginning in 1995 with her landmark bill, AB 650. “We have been working with Senator on the mandatory enforcement issue for nearly a decade, sending letters and e-mails, making phone calls, and promoting this important issue every chance we get. The approval of SB 1500 is another positive step toward ensuring everyone driving on California’s roads maintain legally required auto coverage,” Alliance Executive Director Lorelle Kitzmiller said. “Thanks to Senator Speier’s efforts, as well as the active support of Alliance members, more loopholes used by auto insurance scofflaws will now be closed.” For years, insurance producers have complained about drivers purchasing minimum liability limits, only to cancel their policies, or simply stop paying their premiums, when vehicle tags are obtained. “Now, the DMV will be electronically notified when one of their policyholders’ auto policies are discontinued,” added Kitzmiller. “If they do not reinstate their policy, or purchase alternative coverage, their registrations will be cancelled.”

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Insurance Journal West October 25, 2004
October 25, 2004
Insurance Journal West Magazine

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