Calif. Says ‘No’ to Props. 30 & 31

California voters overwhelmingly rejected Propositions 30 and 31, referendum which were added to the March 7 ballot in response to last year’s passage of the California Fair Insurance Responsibility Act.

By voting “No” on Prop. 30, voters rejected restoration of the right to sue another person’s insurance company for “unfair claims settlement practices following judgment or award against another person.” Furthermore, a “No” vote on Prop. 31 rejected a variety of statutory provisions which would have slightly decreased the fiscal impact on state revenues of Prop. 30, had the latter measure actually been approved.

It is estimated that opponents of the measures, largely comprised of insurance industry groups, spent close to $50 million to make sure the legislation would not be enacted.