PLCaliforniaeasy
Under Proposition 103 and Cal. Ins. Code § 1861.02(a), which THREE factors must be given the most weight by a California private passenger auto insurer when calculating premium?
AThe age of the insured driver, the insured's current marital status, and the insured's gender or biological sex as stated on the application
BThe ZIP code where the vehicle is garaged, evidence of any prior insurance, and the insured's credit-based insurance score from the bureaus
CThe make and model of the vehicle, the exterior paint color of the vehicle, and the insured's stated primary occupation on the application
The insured's driving safety record, annual miles driven, and years of driving experience
Why this is the answer
Prop 103 (1988) restructured California auto rating around the policyholder's actual driving behavior rather than demographic proxies. Section 1861.02(a) requires that the rate or premium charged for an auto policy be determined by, in decreasing order of importance: (1) the insured's driving safety record, (2) the number of miles he or she drives annually, and (3) the number of years of driving experience. Any optional factor adopted under 10 CCR § 2632.5 must be given less weight than each of these three.
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