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The Attorney General’s office released a title and summary for the proposed ballot initiative that would allow automobile insurers to offer what is known as a persistency discount to new customers.
The initiative, sponsored by the American Agents Alliance, will “allow consumers to receive a discount for their years of continuous automobile coverage regardless of the company where they seek insurance.” Under current law, the persistency discount can only be offered to current customers who have been insured by the company continuously for a number of years.
This initiative is similar to Proposition 17, which was on the ballot last year. Despite a large spending campaign by the Mercury Insurance Company, Prop 17 was ultimately defeated 52% to 48%. The new initiative is not sponsored by Mercury but rumor is that George Joseph is funding the effort personally. This initiative, titled “Changes Law to Allow Auto Insurance Companies to Set Prices Based on a Driver’s History of Insurance Coverage,” needs to collect 504,760 signatures to qualify for the ballot. The signatures must be collected by January 9, 2012.