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NEWS RELEASE
Feb 28, 2000


CONTACT: Douglas Heller 310-392-0522 ext. 309

State Agency to Reject Quackenbush Regulations For Lifeline Auto Insurance Program

Officials with the Office of Administrative Law (OAL) have indicated that they will reject regulations implementing the "Lifeline" Low Cost Auto Insurance Program that were submitted by the California Department of Insurance (CDI).

The Foundation for Taxpayer and Consumer Rights (FTCR) called upon OAL to strike certain parts of Commissioner Quackenbush's regulations because they imposed unfair and unnecessary burdens on low income consumers. According to FTCR, some of the regulations would have been illegal.

FTCR expects a formal rejection of the regulations before the close of business today. FTCR will issue a detailed statement regarding this ruling. Advocates with FTCR note that this repudiation of the Commissioner's regulations will benefit the low income motorists who expect to purchase the new insurance policy when it becomes available later this year.

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