SCHWARZENEGGER SIGNS AUTO INSURANCE, SAFETY LEGISLATION

California Gov. Arnold Schwarzenegger has signed several bills dealing with automobile insurance and safety. SB 20 legislation will extend a low-cost auto insurance program through 2011. SB 150 requires insurance companies to provide consumers with a written specific reason for declining or cancelling insurance. And SB 608 provides consumers more representation before the state Public Utilities Commission.

SB 20, the low-cost auto insurance bill, extends the expiration date of the program for another four years and expands it to six other counties, including Alameda, Fresno, Orange, Riverside, San Bernardino and San Diego. The program was first established in 1999 in Los Angeles and San Francisco counties. On Jan. 1, 2006, the state Department of Motor Vehicles will require electronic proof of insurance from insurers. It also will begin suspending the registrations of vehicles with 45 days of advance notice when coverage lapses and is not replaced.

SB 150 requires insurance companies to provide a written reason for declining or cancelling an insurance policy. Samuel Sorich, president of the Association of California Insurance Companies, said his organization asked Schwarzenegger to veto the bill because the legislation will add extra paperwork for insurance companies and is not needed.

Meanwhile, ACIC has commended Gov. Arnold Schwarzenegger for signing into law two bills designed to improve highway safety.

AB 1325 addresses motor vehicle speed contests, and AB 1474 amends the state’s provisional licensing program. Both measures become effective Jan. 1. 2006.

AB 1325 by Assemblyman Juan Vargas, D-San Diego, increases the minimum imprisonment penalty for illegal street racing from one to 30 days. It also increases the maximum imprisonment penalty from 90 days to six months.

AB 1474 by Assemblyman Bill Maze, R-Visalia, makes two changes in California’s graduated, or provisional drivers license program–which places restrictions on licenses of beginning teen drivers.

The legislation extends from six months to one year the period when graduated drivers licensees are prohibited from transporting individuals under the age of 20. In addition, AB 1474 expands the restriction on driving between the hours of midnight and 5 a.m. to 11 p.m. and 5 a.m.