California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.7 - Private Passenger Automobile Rating Factors › Article 3 - Rating Factors › Section 2632.5 - Rating Factors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Every insurer offering or issuing a policy of automobile insurance shall
				  establish a class plan for the calculation of rates that specifies rating
				  factors in accordance with this section and which complies with the good driver
				  discount requirements of California Insurance Code Section
				  1861.02 and
				  all other statutes providing discounts in automobile insurance rates and
				  premiums.
(b) Each insurer may only
				  use the characteristics of one driver to rate each vehicle except as provided
				  for in section 2632.5(d)(12) and section 2632.5(c)(2). If there are more
				  vehicles on a policy than drivers, the insurer shall assign either a rate for
				  an undesignated driver or the lowest rate for all driver related factors to the
				  excess vehicles.
(c) An insurer's
				  class plan, and all rates and premiums determined in accordance therewith,
				  shall utilize the following rating factors (the "Mandatory Factors") for bodily
				  injury liability, property damage liability, medical payments, uninsured
				  motorist, collision, and comprehensive coverages:
(1) "First Mandatory Factor," as used in
				  subchapter 4.7, is the insured's driving safety record per California Insurance
				  Code Section
				  1861.02(a)(1).
				  This factor means the following for the driver rated on the insured vehicle:
(A) the public record of traffic violation
				  convictions available from the California Department of Motor Vehicles,
				  together with similar public records of traffic violation convictions that are
				  available from other jurisdictions (hereinafter sometimes referred to as the
				  "Motor Vehicle Report" or "MVR"). To determine a driver's safety record for
				  purposes of California Insurance Code Sections
				  1861.02(a)(1)
				  and
				  1861.025,
				  each insurer shall verify a driver's current driving safety record as contained
				  in the MVR for every driver listed on the policy at the time of policy
				  application, and for each new driver added to the policy at the time the driver
				  is added, and no less frequently than every 36 months thereafter, if the policy
				  remains in effect. No insurer shall rate or underwrite a renewal policy based
				  upon an MVR older than 36 months at the time the policy is renewed. However,
				  nothing in this section shall be construed to preclude an insurer from
				  obtaining, for the time periods set forth in this regulation, a report from an
				  insurance-support organization or other third party which establishes that a
				  new MVR would contain only the information already found on the MVR the insurer
				  most recently obtained. When an insurer has such a report for a particular
				  driver, the insurer is not required to obtain a new MVR for that driver.
				  Additionally, nothing in this section shall be construed to preclude an insurer
				  from granting a discount based on a driving record longer than 36 months as
				  long as the insurer verifies a driver's record as set forth in this
				  section;
(B) the principally
				  at-fault accidents, as determined pursuant to section
				  2632.13;
(C) all convictions for violations of Vehicle
				  Code Sections
				  23140,
				  23152, or
				  23153 must be
				  treated as the highest surchargeable violation; however, other Vehicle Code
				  convictions may receive equal treatment.