Insurance Exec Makes Big Donation To Change A California Law

Mercury General Chairman George Joseph is backing the 2012 Auto Insurance Discount Act to the tune of $8.1 million. The proposed initiative would give discounts to some motorists and raise rates for others based on driving records and the amount of time that they have had continuous insurance coverage.

The proposition would allow insurers to offer discounts to new customers who could prove they were continuously covered by any licensed auto insurance company over the previous five years. Currently, California law only allows insurers to offer ''loyalty'' discounts to their existing customers. Some gaps in coverage would be acceptable: extended unemployment and military service most notably. Opponents say that the new proposition would allow insurance companies to discriminate against uninsured motorists, making it harder for them to obtain insurance.

This isn't the first time such an initiative has been circulated for enough signatures to get on the ballot. Mr. Joseph backed a previous attempt in 2010. He gambled $16 million then and lost.  Maybe the voters like the insurance regulations the way they are.