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California labor union opposes auto insurance increase

Posted On Fri, April 16, 2010

Californian's voting ballot in June will have a measure that, if passed, will allow insurance companies to hike drivers' premiums based on their auto insurance purchase history.

The controversial measure, Proposition 17, is firmly opposed by the California Labor Federation, among many other consumer and citizen organizations.

The measure would implement an insurance surcharge on drivers who have had a lapse in car insurance coverage during the past five years or who missed any payments. The measure would also require people who stopped driving and didn't have insurance during that time to pay up to $1,000 extra for car insurance when restarting coverage. Presently, California prohibits insurance companies from imposing such a surcharge.

"Labor organizations that represent millions of California's working families have joined the fight to stop this insurance industry ripoff that will increase the price of auto insurance," said Doug Heller of the Stop Prop 17 campaign. "Groups representing millions of Californians will be warning voters to oppose Prop 17."

At the Democratic Party of California convention this weekend, a decision will be made about whether they too will oppose Prop 17. Opposition groups are urging Democratic party members to join their cause.ADNFCR-2297-ID-19727006-ADNFCR

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