PLCaliforniamedium
Under Cal. Ins. Code § 1861.02(c), which of the following is FLATLY PROHIBITED as a private passenger auto rating or eligibility factor in California?
AThe number of miles the insured actually drives on an annual basis as reported by the applicant
The absence of prior insurance coverage, sometimes described as the lack of persistency or continuous coverage
CThe body type and the model-year age of the particular insured vehicle that is being rated for the coverage
DThe insured's own documented driving safety record taken over the relevant statutory experience period under the plan
Why this is the answer
Section 1861.02(c), added by Prop 103 and later strengthened by Prop 103-implementing regulations, prohibits California auto insurers from using the absence of prior insurance — sometimes called the 'persistency' or 'continuous coverage' factor — to refuse to write, refuse to renew, surcharge, or otherwise discriminate against applicants. Mileage (a) and vehicle type/age (c) are explicitly mandatory and optional factors, respectively, and driving record (d) is the first mandatory factor.
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