Under Proposition 103, what rate must a California insurer charge for a Good Driver Discount personal auto policy?

Explanation

Insurance Code §1861.02(b)(2), enacted by Proposition 103, provides that the rate charged for a Good Driver Discount policy shall comply with subdivision (a) and shall be at least 20 percent below the rate the insured would otherwise have been charged for the same coverage. Every insurer must offer such a policy to an applicant who qualifies. (a) is wrong because the discount is a statutory entitlement, not an aspiration the Commissioner can excuse; (b) understates the margin, which is 20 percent and not 10; and (c) is wrong because the benchmark is the insurer's own otherwise-applicable filed rate, discounted by at least 20 percent, not a rate the Commissioner calculates.