From a California Department of Insurance press release, quoting Commissioner Garamendi:
Today is an important day for drivers in California. The Office of Administrative Law (OAL) has approved my regulations requiring insurers to place more weight on how safely you drive than on where you live when setting rates. This was the hope of voters who passed the landmark Proposition 103 in 1988 to end Zip code discrimination. I commend the OAL and Governor Schwarzenegger for moving the approval process along expeditiously.
Insurers will now have 30 days to submit new rating plans to my office that comply with the new regulations. From that point they will have a two-year phase-in period to fully implement their plans.
The Contra Costa Times shares some feedback about the new rules:
Consumer activists cheered the move, saying rates will go down across the state.
Meanwhile, pricing actuaries across the country wonder just how bad the math and economics curricula are in California public schools.