20th Century Insurance v. Garamendi

Opinion

MOSK, J.

—At the November 8, 1988, General Election, the voters approved an initiative statute that was designated on the ballot as Proposition *240103. The measure made numerous fundamental changes in the regulation of automobile and other forms of insurance in California. Formerly, the so-called “open competition” system of regulation had obtained, under which “rates [were] set by insurers without prior or subsequent approval by the Insurance Commissioner . . . .” (King v. Meese (1987) 43 Cal.3d 1217, 1221 [240 Cal.Rptr. 829, 743 P.2d 889].) Under that system, “California ha[d] less…