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Ivo Labar of Kerr & Wagstaffe Responds to Proposed California Insurance Law

Proposition 33 would allow insurance companies to raise rates on drivers who let their coverage lapse—regardless of the reason. Ivo Labar of Kerr & Wagstaffe believes this will ultimately harm drivers.


San Francisco, CA -- (ReleaseWire) -- 09/19/2012 reports that Proposition 33 has the potential to lead to higher insurance premiums for drivers in the state of California. An initiative to raise insurance rates on drivers who allow coverage to lapse, Proposition 33 “changes law to allow auto insurance companies to set prices based on a driver’s history of insurance coverage,” according to the article. Ivo Labar of Kerr & Wagstaffe agrees with opponents of this proposition, who believe that previous insurance coverage should not have an effect on current insurance premiums.

The article asserts that consumer advocates oppose the initiative, citing its potential to increase insurance expenses for drivers who have “spotless” driving records because they have, for one reason or another, experienced a lapse in coverage. Because such a lapse could be caused by any number of circumstances, consumer advocates believe it is unfair to base prices on such criteria. The article cites long-term unemployment, serious health conditions, attending school, and opting to utilize public transit as reasons why a driver could justify allowing their car insurance coverage to lapse.

But the issue is not just the rising rates, although that is a major consideration for the consumers who are still reeling from the economic recession. If passed, Proposition 33 will change the way that the insurance industry functions. The article states that: “If this measure is passed, it will make a significant difference to the shape of the industry in the state, as it will change regulations that have been in place for decades.”

Labar agrees with the opponents of Proposition 33, citing the fact that it will overlook justifiable reasons for which drivers have experienced a lapse in insurance coverage.

“There are a number of legitimate reasons why a person may allow their insurance to lapse that have nothing to do with increased risk,” asserts Ivo Labar of Kerr & Wagstaffe. “Insurers should not be permitted to increase premiums on this basis.”

Labar is watching this debate closely, as it could have lasting ramifications.

About Ivo Labar
Ivo Labar is a partner at the Law Firm of Kerr & Wagstaffe, which is based in San Francisco, California. With the rest of the legal professionals at Kerr & Wagstaffe, Ivo Labar provides clients with guidance regarding diverse legal cases, including those tried by state and federal courts. Additionally, Ivo Labar and the rest of the Kerr & Wagstaffe team take on cases for plaintiffs and defendants. Labar is interested in a wide range of practice areas, but he specializes in complex litigation cases. Class action lawsuits, victims’ rights, and insurance policyholder rights are of particular interest to Labar. Since starting his career, Labar has assisted clients in recovering over $25 million in settlements and verdicts. He graduated from the University of California Hastings College of the Law.