Atty. General's Title and Summary of Mercury Insurance Prop 17 Warns of Premium Increases on Californians

Ballot Arguments and Rebuttals Posted Today -- former Insurance Commissioner Garamendi and Attorney General John Van de Kamp Join Consumer Advocates and Vets in Opposition; Paid Spokespeople Front for Mercury

SANTA MONICA, Calif., Feb. 23 /PRNewswire-USNewswire/ -- Proposition 17, the controversial ballot measure funded by Mercury Insurance Co., will allow insurance companies to raise auto insurance premiums on motorists based on their coverage history, according to ballot materials prepared by Attorney General Jerry Brown and the Secretary of State.

As the ballot materials explain, Mercury Insurance's Prop 17 would legalize surcharges by Mercury and other insurance companies that are now illegal under California law – Proposition 103, approved by the voters in 1988. That measure, which has saved California motorists over $63 billion, bars insurance companies from considering a driver's coverage history when a motorist applies for insurance.

"The ballot pamphlet, which is provided to all California voters, is going to be very important in an election where Mercury Insurance will spend millions of dollars to deceive the voters about its Prop 17," said Harvey Rosenfield, founder of Consumer Watchdog and the author of Proposition 103. "Thanks to a diligent review by the Attorney General, voters will know that many Californians will be subject to huge surcharges if Prop 17 passes."

Also today, Secretary of State Debra Bowen made publicly available the Prop 17 ballot arguments and rebuttals. Click here to download: http://www.sos.ca.gov/elections/vig-public-display/060810-primary-election/

Consumer Watchdog's argument was signed by Elisa Odabashian, Director of the West Coast Office of Consumers Union and Jon Soltz, Char of VoteVets.org, which represents 100,00 veterans and their families.

Consumer Watchdog's rebuttal was signed by former Insurance Commissioner John Garamendi and John Van de Kamp, the former Attorney General. Garamendi was the first to win the office of Insurance Commissioner, made an elective post by Prop 103. Garamendi delivered $1.2 billion in refund checks during his first term, and successfully defeated an earlier attempt by Mercury to engage in the practices that Prop 17 would legalize. As Attorney General, John Van de Kamp successfully defended Proposition 103 in the courts after insurance companies sued to block the law from taking effect the day after Election Day in November, 1988.

Mercury Insurance Hides Behind Front Groups

Meanwhile, campaign reports reveal that Mercury Insurance has created paid front groups for their "support" of Prop 17. Mercury's credibility has come under fire of late as recent reports by CA Department of Insurance (CDI) reveal the company has repeatedly flouted California insurance rules – including surcharging motorists – a practice that is now unlawful, but that 17 would legalize.

For example, Jim Conran, who signed Mercury's Prop 17 ballot argument, is paid $5,000 a month by Mercury for his media appearances in support of the initiative. This is hardly Mr. Conran's first spin as an "expert" consultant. Mr. Conran is identified as a leader or supporter of Consumers for Cable Choice, Consumers for Competitive Choice, Credit Card Con, Truth About Splenda and the Child Safety TaskForce – all industry front groups.

Conran is also listed at the co-chair for Californians for Fair Auto Insurance Rates (Cal-FAIR), which is Mercury's main front group on Prop 17. The consulting firm that runs "Cal-FAIR," Bicker, Castillo & Fairbanks, has raked in almost $200,000 since last August.

Mercury must pay its allies in the hopes of improving its tarnished reputation. Earlier this month, the California Department of Insurance released government reports showing that Mercury Insurance has a history of discrimination against members of the U.S. military, the unemployed, the disabled, small businesspeople and unmarried adults living together.

The Campaign for Consumer Rights, a nonpartisan, nonprofit organization is working with consumer groups, seniors, unions and soldiers to oppose Mercury's deceptive initiative. The Campaign for Consumer Rights is the campaign affiliate of the nonpartisan, nonprofit Consumer Watchdog.

Join us on Twitter at StopMercury: http://twitter.com/StopMercury

SOURCE Campaign for Consumer Rights

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