Prop. 33 revives fight over auto insurance pricing

http://www.latimes.com/business/la-fi-prop33-insure-20121013,0,5747532.story

Joseph wants to change California insurance law so drivers can get the equivalent of their existing "loyalty" discounts for renewing policies even if they switch insurance companies.

That's unfair and would lead to higher rates for new motorists, young drivers and people who let their coverage lapse for extended periods, Rosenfield contends.

The dispute is a replay of an initiative battle two years ago, but this time, Joseph is practically single-handedly bankrolling the effort. He has personally contributed 99.5% of the $16.2 million raised by Proposition 33's official sponsor, the American Agents Alliance, a trade group of independent insurance agents and brokers, including many who represent Mercury.

It was a close contest in 2010. The initiative, widely criticized for being written mainly to help Mercury, lost 48% to 52%.