In 1988, California voters passed Proposition 103 that, among other things, would reduce insurance rates and require insurers to obtain prior approval from the California Department of Insurance (CDI) before implementing rate changes.

Notification pertaining to the Proposition 103 Recoupment Fee Assessment for Fiscal Year (FY) 2011-12 and Attachment A - Proposition 103 Administration Fees, which provides the FY 2011-12 annual assessment for each company, were mailed to insurers in October 2011.

Notifications are generic to all insurance companies subject to the Proposition 103 Recoupment Fee Assessment.  The Attachment A - Proposition 103 Administration Fee Schedule is not available on the Web page.  Please contact Allen Han at allen.han@insurance.ca.gov to receive a duplicate copy for your company. 

The following documents are available online for your reference:

• Exhibit B - Proposition 103 Recoupment Fee Overview - Proposition 103 Recoupment Fee Overview - provides Proposition 103 history, methodology for calculating costs, and the fee assessment.  
• Exhibit C - Proposition 103 Fee Assessment Schedule - Proposition 103 Fee Assessment Schedule - provides the assessment factor used to calculate the assessment for each company.  
• Exhibit D - Description of Department Functions Applicable to Proposition 103 - Description of Department Functions Applicable to Proposition 103 - provides a brief description of each CDI bureau/unit that participates in administering Proposition 103. 
• Exhibit E - FY 2009-10 Schedule of Actual Costs vs. Actual Collections - FY 2010-11 Schedule of Actual Costs vs. Actual Collections - provides actual costs for administering Proposition 103 by CDI bureau/unit.. 
• Exhibit F - FY 2010-11 Schedule of Projected Costs by Bureau - FY 2011-12 Schedule of Projected Costs by Bureau - reflects the projected costs for administering Proposition 103 by CDI bureau/unit for FY 2011-12 and any adjustments to account for any over or under collection of assessments in prior years.
• Exhibit G - FY 2010-11 Informational Report on Intervenor Program Costs - FY 2011-12 Informational Report on Intervenor Program Costs - provides FY 2010-11 Intervenor compensation costs for consumer participation pursuant to California Insurance Code Section 1861.01.

If you have any questions concerning the Proposition 103 Recoupment Fee Assessment calculation, please contact George Yen at george.yen@insurance.ca.gov.  For questions regarding the Proposition 103 Recoupment Fee Assessment process, please contact Allen Han at allen.han@insurance.ca.gov.