CALIFORNIA IN BRIEF : SACRAMENTO : Senator Would Link Insurance, ZIP Code

Calling Proposition 103 a “fraud,” a state lawmaker who represents eight rural Northern California counties proposed a constitutional amendment reinstating territorial ratings as the chief factor in setting automobile insurance rates. Sen. Jim Nielsen (R-Rohnert Park), vice chairman of the Senate Insurance, Claims and Corporations Committee, said banning the use of ZIP codes to price insurance under Proposition 103 unfairly forces rural drivers to subsidize insurance rates paid by urban dwellers. Nielsen contended that urban areas have a higher likelihood of accidents, lawsuits and fraudulent claims.