California’s Department of Motor Vehicles (DMV) was hit with a lawsuit May 22 by a number of insurance associations wishing to halt a fee hike that would reportedly double the price for motor vehicle reports.
Filed in Sacramento Superior Court by the Personal Insurance Federation of California (PIFC), the National Association of Independent Insurers (NAII), the American Insurance Associations (AIA), the Alliance of American Insurers (AAI) and the Association of California Insurance Companies (ACIC), the lawsuit is attempting to halt the proposed $4 fee the DMV is seeking to institute on June 1.
Just a month ago, the DMV sought and filed for an emergency adoption of the fee hike, claiming the fee had not been raised in over a decade.
Nicole Mahrt, Director of Public Affairs/Western Region for AIA, told Insurance Journal, “We think the Department is illegally taxing the industry. The entire industry feels it is important we be able to access these records as part of Prop. 103. A 1997 audit by the state auditor documented the costs for the DMV to make this information available is actually $.50. Recent information we obtained through a public records act showed that it actually costs the Department $.13 to access these records.”
No date for a hearing on the filing has been instituted.
Topics Lawsuits California Carriers
Was this article valuable?
Here are more articles you may enjoy.
Ford’s AI Hiccups Lead Carmaker to Rehire ‘Gray Beard’ Engineers 
PE-Backed Insurance Broker Hub International Files Confidentially for US IPO 
St. Pete Mayor Accepts $275M Bid to Redevelop Tropicana Field Area for Housing 
Tech and Finance Sectors Losing 28,000 Jobs Monthly Show AI Impact on Labor 
