Alliance Applauds Passage of SB 1500

October 1, 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. That bill was among the first shots fired in the battle to thwart drivers who circumvent mandatory auto insurance requirements. The association has stood with Senator Speier in the years following, actively supporting her continued efforts to tighten up compulsory auto insurance laws.

“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,” said Alliance Executive Director Lorelle Kitzmiller. “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. This fixes a major problem with catching these lawbreakers and helps to ensure that these drivers choosing to comply with the law are protected.”

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