Asm. Autumn Burke sponsors insurance bill that could hurt consumers

A California bill up for an Assembly committee hearing Wednesday would allow methodologically ludicrous insurer surveys to count as a “good faith” effort to determine a labor rate.  Assembly Bill 1679 essentially gives a stamp of approval to all of the bad behavior the California Department of Insurance recently sought to check.

On Jan. 1, new CDI regulations formally took effect guaranteeing that carriers had a “rebuttable presumption” of good faith on labor rates if they chose to follow a standardized labor rate survey format and methodology to determine the “prevailing rate.” (Carriers aren’t required to follow the survey — or even conduct a survey at all.)

This regulation had been in the works for five years, and the CDI heard comments from insurers during that time. Insurers didn’t have to comply until Feb. 28.

Less than two months after that date, insurer trade groups went into hysterics, and Assemblywoman Autumn Burke, D-Inglewood, sponsored AB 1679.

What does this mean for insurers?  Less insurance reimbursement for damage to your vehicle based on insurance companies being allowed to use bogus surveys to determine reimbursement rates.  This would cost drivers larger out of pocket expenses, which would cause a huge financial burden for low-income drivers.  The Assemblymembers support of this bill is confusing considering she was recently lauded for her poverty bill.

Related:  In ‘poverty’ bill, another stealthy threat to Prop. 13: Susan Shelley

Why are Black politicians consistently pushing legislation that hurt some of the poorest people in their district?

Read the full text of AB-1679 Motor vehicle insurance: auto body repair by clicking here.

2 Responses so far.

  1. Gary Leon Daniels says:

    One of the concerns I have voiced with recent comments to 2urbangirls is the practice of Black elected officials voting one way in Sacramento and then telling the constituents – in their home districts – the opposite. But to actually sponsor a bill that will clearly hurt those who can least afford it is inexcusable and unfairly burdens the poor. This is happening at the local, county, state, and federal level and represents the ultimate betrayal of our trust and it continues to happen.

    There is a similar issue. Whether or not we agree or disagree with the recently passed gas tax bill, Blacks are going to feel the pinch every time they go to the gas pumps. We are the faces of the poor and disenfranchised. This bill was approved in the dead of the night. Not one Black politician sought the opinions of the community or even the local politicians. We did get their press releases touting the proposed benefits of the bill after it was passed.

    Assemblywoman Autumn Burke’s proposed legislation affects us all. Call her office to voice your concern (310) 412-6400. By the time we add up all of the costs for the different bills and measures recently passed we will be broke.

    We cannot continue to keep reelecting those who betray our trust. Look at some of our communities. They look like crap and our Black elected officials and their aides can’t make us think otherwise. We aren’t stupid.

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