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Insurance Commissioner Dave Jones this week announced the final approval of amended regulations that simplify the requirements for determining whether a driver is principally at-fault (PAF) for an accident, which impacts consumers’ ability to obtain “Good Driver Discounts” under Proposition 103. The amended regulations cleared the final administrative hurdle, having obtained approval from the Office of Administrative Law.
The amended regulation also allows an insurer to rebut presumptions concerning circumstances where a driver should be considered at-fault because the insurer may have evidence that the driver's acts or omissions caused the accident. The amended regulation also corrects problems with the PAF definition by including accidents involving bodily injury or death, restoring "total loss or damage" language, and raising the threshold for property damage, which has not been adjusted in nine years.
In addition, it allows insurers to rely solely on Comprehensive Loss Underwriting Exchange (CLUE) and Insurance Services Office (ISO) reports. LexisNexis® C.L.U.E.® Auto and ISO's A-PLUS™ are subscribing loss underwriting exchange carriers databases containing personal automobile claims information. In response to the amended regulation, CLUE and ISO have modified their databases to include information pertinent to insurers’ principally at-fault determinations. With this additional information, an insurer's use of CLUE reports should be a reliable source of information and will allow insurers to make timely auto insurance quotes to consumers.
Jones noted the amended regulations include the following consumer safeguards: