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?
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)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Which coverage part of the ISO Personal Auto Policy promises to pay damages for bodily injury or property damage for which an insured becomes legally responsible because of an auto accident?
- A covered vehicle is struck by a deer that bounds into the road. Under the Personal Auto Policy, which physical damage coverage responds to this loss?
- A California auto policyholder wants to decline uninsured motorist (UM) coverage. How may that election be made?
- Which best describes the California Low Cost Automobile Insurance Program (CLCA)?
- On a Business Auto Coverage Form, an insured selects covered auto Symbol 1. Which autos are covered for liability?
- A small contractor wants liability protection only for vehicles the business owns, but not for employee-owned cars used on the job. Which Business Auto symbol should the producer assign for Liability?
Last reviewed: · editorial process