State Farm Mutual Automobile Insurance v. Garamendi

Opinion

BROWN, J.

In 1988, voters passed Proposition 103, which made “numerous fundamental changes in the regulation of automobile and other types of insurance.” (Calfarm Ins. Co. v. Deukmejian (1989) 48 Cal.3d 805, 812 [258 Cal.Rptr. 161, 771 P.2d 1247] (Calfarm).) “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 ....’” (20th Century Ins. Co. v. Garamendi (1994) 8 Cal.4th 216, 240 [32 Cal.Rptr.2d 807, 878 P.2d 566] (20th Century).) Proposition 103 altered…