Insurance Regulation.

INSURANCE REGULATION. INITIATIVE STATUTE. Requires State Insurance Commissioner to set standards for "fair and reasonable" insurance rates and approve rate changes. Prohibits rate approvals which are "unreasonable, excessive or discriminatory," prohibits life insurance and life annuity differentials based on sex; prohibits auto liability insurance differentials based on territory. Provides for "good driver" policies. Imposes reporting requirements on insurance companies. Provides sanctions and remedies. Repeals certain sections including anti-trust exemptions for insurance companies. Creates Office of Consumer Advocacy within Department of Insurance; Office Director appointed by Attorney General with Senate consent. Limits campaign contributions by insurance companies. Contains other provisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The State Department of Insurance will experience increased administrative costs of approximately $10 million a year which may vary up or down depending on the volume of rate reviews and enforcement actions. Such costs to be funded from the Insurance Fund which is supported by assessments on the insurance industry. Will have unknown impact on State General Fund revenues collected from gross premiums insurance tax.