Auto InsuranceQuestion 5 of 215
Under California Proposition 103, an auto insurer setting a private passenger rate must give the greatest weight to which three primary rating factors before any optional or secondary factors are applied?
a.Vehicle make, ZIP code, gender
b.Driving safety record, miles driven annually, years of driving experience
c.Credit score, marital status, occupation
d.Vehicle horsepower, color, garage type
Explanation
Insurance Code §1861.02 (added by Proposition 103 in 1988) requires that automobile rates be determined primarily by, in this order: (1) the insured's driving safety record, (2) the number of miles driven annually, and (3) the number of years of driving experience. Any secondary or optional factors permitted by the Insurance Commissioner must have less weight than each of the three primary factors.
Law Reference: Cal. Ins. Code §1861.02 (Proposition 103)Practice all 215 questions free — no signup required.
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