Subject: Re: Re: California Voters Reject Mercury General-Funded Ballot Question

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: why is it awesome? that would have let peeps switch auto insurance companies easier. : : -J : : : Awesome news! : : California voters rejected a Mercury General-sponsored proposition to allow insurers to extend automobile insurance discounts to more drivers despite the company having 15-to-one spending advantage. : : Proposition 17 lost by a 52.1% to 47.9% margin, 2,004,410 to 1,848,768, according to unofficial results from the California Secretary of State's office. : : The outcome was a victory for consumer groups that argued the referendum would effectively legalize surcharges outlawed since the passage of Proposition 103 in 1988. Because those with lapses in coverage or payments would be disqualified from discounts, the initiative would allow insurers to charge those customers more, they argued. : : While the Yes on 17 - Californians for Fair Auto Insurance Rates campaign touted the support of 100 organizations, Mercury General Corp. funded virtually the entire operation. The insurer gave approximately $16 million toward the effort. : : The proposition's failure to win despite the financing disparity shows that voters don't trust the insurance industry, said Jamie Court, president and chairman of Consumer Watchdog. Court is also a board member of the Campaign for Consumer Rights, which ran the Stop Prop 17 campaign. : : "It tells the insurance industry it shouldn't be messing with the voters, because the voters can see through their tricks," Court said. : : Mike D'Arelli, executive director of the Alliance of Insurance Agents and Brokers, said voters missed an opportunity to save themselves money. "There is no doubt that extending the continuous coverage discount would have improved current auto law," he said in a statement from the Yes on 17 campaign. : : Mercury Insurance Co. (NYSE: MCY), a member of Mercury General Group, currently has a Best's Financial Strength Rating of A (Superior). : : The top five writers of private passenger automobile insurance in California in 2009 were Farmers Insurance Group, with a 15.1% market share; State Farm Group, 13.1%; Allstate Insurance Group, 8.8%; Auto Club Enterprises Insurance Group, 8.8%; and Mercury General Group, 8.7%; according to BestLink, which provides online access to A.M. Best's Global Insurance & Banking Database.

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