Ballot measure seeks to repeal California Proposition 103
A proposed ballot measure, penned by a California insurance intermediary, seeks to reform the state’s Proposition 103, which would nix the requirement to elect the insurance commissioner and prior approval of rate-setting.
The “California Insurance Market Reform Act of 2026” states that, instead, a modernized insurance regulatory framework would be designed “to restore market stability, increase competition, and protect consumers.”
According to the California Department of Insurance (CDI), Proposition 103 was passed by voters in November 1988 with the intention “to protect consumers from arbitrary insurance rates and practices, to encourage a competitive marketplace and to ensure that insurance is fair, available and affordable for all Californians.”
The repeal states that Proposition 103 is outdated and contributes to insurer exits from the state, “leaving many Californians without adequate coverage.”
Existing prohibitions on unfair claims practices would remain intact.
“The measure reforms rate regulation, provides fair and adequate rates to consumers, limits commisioner discretion, eliminates third-party intervenors in rate proceedings, establishes wildfire risk mapping standards, and strengthens solvency requirements for insurers, while retaining core consumer protections,” states an Aug. 11 letter from Panorama Insurance Associates to Attorney General Rob Bonta.
If approved, the insurance commissioner would be appointed by the governor and confirmed by the Senate, and statutory limits would be established on the commissioner’s authority.
Also, rather than prior approval rate review, there would be a deadline process in which rate filings would have to be completed within 120 days, unless extended by mutual agreement, with actuarial consideration of reinsurance costs and mitigation credits. A public comment process would be allowed, but without the intervenor process established by Proposition 103.
The measure would also:
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- Establish a new rate regulation process to require “adequate, not excessive, and not unfairly discriminatory” rates beginning Jan. 1, 2027
- Repeal all statutes enacted by Proposition 103 that are inconsistent with the new act, including Insurance Code Sections 1861.01-1861.16.
Elizabeth Hammack, Panorama Insurance Associates agency principal and owner, wrote that as an independent insurance agent, she has seen firsthand “the dysfunction of that the old Prop 103 has wreaked upon our state and want to make a difference for the better of all the people of California.”
The legislative intent memorandum filed with the proposed measure states that, “The current rate approval process is slow, unpredictable, and subject to costly third-party interventions that have often been used for financial gain rather than consumer benefit.”
Nonprofit news organization CalMatters reports the measure as a “long shot.”
Molly Weedn, a CDI external spokesperson, told CalMatters that Proposition 103 “guarantees consumers’ right to hold all parties in the ratemaking process accountable,” adding that Commissioner Ricardo Lara is “opposed to any effort to take away the rights consumers deserve.”
Consumer Watchdog, the advocacy group whose founder wrote Proposition 103, also told CalMatters that the measure doesn’t seem to be a “serious” or well-funded campaign.
“We’re confident voters want more accountability from insurance companies,” said Consumer Watchdog Executive Director Carmen Balber, according to CalMatters.
The group believes that the repeal would mean “skyrocketing” rates for auto and home insurance policyholders.
According to the Consumer Federation of America, the repeal “would institute the regulatory system used in states that have seen some of the most dramatic rate spikes around the country,” the article states.
To qualify for the November 2026 ballot, 546,651 signatures would have to be collected by April 17.
The Office of the Attorney General will accept public comments online through Sept. 10.
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