# CA Insurance Notice: 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency): 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) March 5, 2004 > California · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-March-5-2004 ## Section - **Citation:** CA Insurance Notice: 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) - **Heading:** 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) March 5, 2004 - **Jurisdiction:** California - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** California DOI Insurance Notices / 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) March 5, 2004 ## Text STATE OF CALIFORNIA DEPARTMENT OF INSURANCE 45 Fremont Street San Francisco, CA 94105 NOTICE TO: ALL ADMITTED PROPERTY AND CASUALTY INSURERS LICENSED TO WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE, AND OTHER INTERESTED PERSONS SUBJECT: LOS ANGELES COUNTY SUPERIOR COURT DECISION INVALIDATING SB 841 (PERATA) (CHAPTER 169, STATUTES OF 2003) DATE: MARCH 5, 2004 The purpose of this Notice is to inform affected licensees and interested members of the public of a recent decision of the Superior Court for the County of Los Angeles declaring invalid recent amendments to California Insurance Code Section 1861.02(c). SB 841 (Chapter 169, Statutes of 2003), signed by the Governor on August 2, 2003, redefined the optional automobile rating factor “persistency”. SB 841 was subsequently challenged in The Foundation for Taxpayer and Consumer Rights, et al. v. Garamendi, Los Angeles Superior Court Case No. BS086235. On January 15, 2004, Los Angeles Superior Court Judge Dzintra Janavs issued an oral ruling, which declared SB 841 an invalid amendment to the provisions of Proposition 103. Judge Janavs granted a Peremptory Writ of Mandate, ordering the Commissioner not to attempt to enforce the provisions of SB 841. Judge Janavs signed the Judgment and Peremptory Writ of Mandate on February 20, 2004. The Department has been informed that Judge Janavs’ decision will be appealed. Questions have been posed by insurers and others regarding the regulation of class plans during the time the case is on appeal. Some insurers are concerned about the possibility of being required to change their class plans now and again after the case is finally resolved ptory Writ of Mandate on February 20, 2004. The Department has been informed that Judge Janavs’ decision will be appealed. Questions have been posed by insurers and others regarding the regulation of class plans during the time the case is on appeal. Some insurers are concerned about the possibility of being required to change their class plans now and again after the case is finally resolved. In order to minimize any disruption to insurers and their policyholders, to maintain the status quo pending the outcome of an appeal, and in accordance with the provisions of the Judgment and Writ of Mandate signed by Judge Janavs, the Commissioner provides the following guidance as to the actions he intends to take, in the sound exercise of his discretion, during the pendency of any appeal: 1. The Commissioner does not intend at this time to order any insurer that submitted a class plan in accordance with the provisions of SB 841, which plan was submitted after the effective date of SB 841 and was approved prior to the date the Judgment and Writ of Mandate was signed by the Court, to take any action to comply with the statute as it read before enactment of SB 841. However, any such insurer may submit to the Department for approval any changes to its class plan that do not rely on SB 841. 2. In accordance with the judgment, the Department will not approve, or allow to be deemed approved, any application to establish a class plan incorporating the persistency definition set forth in SB 841. At the conclusion of this litigation, the Commissioner expects all affected insurers to be in a position promptly to file class plan applications that are in full compliance with the provisions of the court’s ruling. Questions regarding this bulletin should be directed to: Rick Holbrook Chief, Rate Filing Bureau California Department of Insurance 45 Fremont Street, 23rd Floor San Francisco, CA 94105 lusion of this litigation, the Commissioner expects all affected insurers to be in a position promptly to file class plan applications that are in full compliance with the provisions of the court’s ruling. Questions regarding this bulletin should be directed to: Rick Holbrook Chief, Rate Filing Bureau California Department of Insurance 45 Fremont Street, 23rd Floor San Francisco, CA 94105 (415) 538-4328 Dated: March 5, 2004 JOHN GARAMENDI Insurance Commissioner 2 ## Nearby sections - [CA Insurance Notice: 180—Day Extension of Declaration of Emergency Situation — Los Angeles 180—Day Extension of Declaration of Emergency Situation — Los Angeles Area Fires](https://www.frixlaw.com/law-library/statutes/CA_INS_N_180-Day-Extension-of-Declared-Emergency-Situation-Los-Angeles-Area-Fires.md) - [CA Insurance Notice: 2003 Corporate Applications and Similar Filings —Requiring Department 2003 Corporate Applications and Similar Filings —Requiring Department Approval by Year End (8/6/2003)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-August-6-2003.md) - [CA Insurance Notice: 2003 Eligibility Guidelines and the Use of Loss Information —by Reside 2003 Eligibility Guidelines and the Use of Loss Information —by Residential Property Insurers (4/24/2003)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Advisory-Notice-April-24-2003.md) - [CA Insurance Notice: 2003 Privacy of Nonpublic Personal Information Regulations 2003 Privacy of Nonpublic Personal Information Regulations](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-Privacy-Regulations.md) - [CA Insurance Notice: 2004 2004](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-August-12-2004.md) - [CA Insurance Notice: 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) 2004 Notice of Court Decision Invalidating SB 841 —(Auto/Persistency) March 5, 2004](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-March-5-2004.md) - [CA Insurance Notice: 2004 Notice of Public Hearing Regarding Export List ( View 2004 Export 2004 Notice of Public Hearing Regarding Export List ( View 2004 Export List )](https://www.frixlaw.com/law-library/statutes/CA_INS_N_2004-Export-List.md) - [CA Insurance Notice: 2004 Notice of Public Hearing Regarding Export List ( View 2004 Export 2004 Notice of Public Hearing Regarding Export List ( View 2004 Export List )](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-Export-List-Hearing.md) - [CA Insurance Notice: 2004 Notice to Withdraw Approval and Order for Information —(Disabilit 2004 Notice to Withdraw Approval and Order for Information —(Disability—Discretionary Clauses) (2/27/2004)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-February-27-2004.md) - [CA Insurance Notice: 2004 Proposed Revisions to the Insurance Commissioner's Regulations 2004 Proposed Revisions to the Insurance Commissioner's Regulations](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-of-Further-Public-Hearing.md) - [CA Insurance Notice: 2005 Advisory Notice —Use of Discounts in Detemining Private Passenger 2005 Advisory Notice —Use of Discounts in Detemining Private Passenger Automobile Rates and Premiums —Use of Discounts in Determining Private Passenger Automobile Rates and Premiums—2005-02](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Advisory-Notice-2005-02.md) - [CA Insurance Notice: 2005 Advisory Notice: Property and Casualty Rate Increase —Application 2005 Advisory Notice: Property and Casualty Rate Increase —Applications Which Exceed the Statutory Thresholds Set Forth in California Insurance Code Section 1861.05(c)(3)   (February 18, 2005)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Advisory-Notice-February-18-2005.md) - [CA Insurance Notice: 2005 Life Insurance and Annuity Contract Form Filings —under AB 2384 ( 2005 Life Insurance and Annuity Contract Form Filings —under AB 2384 (January 12, 2005)](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-January-12-2005.md) - [CA Insurance Notice: 2005 Notice of Change in Year End Review Procedures —Effective July 1, 2005 Notice of Change in Year End Review Procedures —Effective July 1, 2005](https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-July-1-2005.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CA_INS_N_Notice-March-5-2004. Check the current official text before relying on it. Not legal advice.