According to the IIABC, that section was added to the Code, by unanimous vote of the legislature in 1990, to exempt surety from the rate rollback and prior approval provisions of Prop 103.
However, noted IIABC, because surety was not included among the lines expressly exempted from the rollback--which included life and health, workers' compensation, title, ocean marine, and reinsurance--supporters of Prop 103 challenged the amendment.
However, on December 8 the appellate court overruled that decision and in the process added up to $100 million to the potential rate rollback pool, said the IIABC, referring to information provided by the Department of Insurance.
According to the IIABC, Prop 103 "author" Harvey Rosenfield, Insurance Commissioner John Garamendi, and others who applauded the appellate court's decision have threatened to challenge numerous other amendments if the Amwest case was decided in their favor.
IIAA, in announcing its funding action, said that as an intervenor, IIABC can raise issues before the state Supreme Court which are not addressed in the main suit brought by insurance carriers in the state.
Commenting on the national association's financial pledge, the IIABC's President Robert E.