Short answer: Under Proposition 103, passed in 1988, California home and auto insurers must get the Insurance Commissioner's approval before changing rates. After a filing is publicly noticed, consumers have 45 days to request a hearing. If a personal-lines increase is more than 7%, the Commissioner must hold a hearing when one is timely requested. Without a hearing, a filing is generally deemed approved 60 days after public notice.
Prior approval
Prop 103 requires insurers to justify rate changes before using them. CDI describes the steps on its Rate Filing Review Process page. The state Senate Insurance Committee's Prop 103 fact sheet gives a summary.
Key timelines
- Public notice: a rate application becomes public once it's noticed.
- 45 days: a consumer can request a hearing.
- More than 7% (personal lines): the Commissioner must hold a hearing if one is timely requested.
- 60 days: without a hearing, the filing is generally deemed approved after public notice.
Intervenors
Under the intervenor program, qualified consumer groups can challenge filings and be compensated for doing so. CDI explains how the public can comment in a consumer alert.
Effect on you
An approved rate sets the base price. Your own premium still depends on your home, your coverage and approved discounts. Prop 103 also created the Good Driver Discount; see our Good Driver Discount guide.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea California home insurance non-renewals.
Frequently asked questions
What does Prop 103 require?
Insurers must get prior approval for home and auto rate changes.
Can the public challenge a rate increase?
Yes. A consumer can request a hearing within 45 days of public notice, and intervenors can participate.
When is a hearing mandatory?
When a personal-lines increase exceeds 7% and a hearing is timely requested.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.
Related guide: California auto insurance rating factors under Prop 103