An initiative that would impact the health/auto/home insurance lines by making them more transparent is gathering signatures to place on the 2012 California ballot.  The consumer group “Consumer Watchdog,” must gather 505,000 signatures by May 1, 2012 to place “The Insurance Rate Public Justification And Accountability Act” on the ballot.

The initiative would achieve three main things according to 900 word document:  : “(1) requiring health insurance companies to publicly disclose and justify their rates, under penalty of perjury, before the rates can take effect; (2) prohibiting unfair pricing for health, auto and home insurance based on prior coverage and credit history; and (3) requiring health insurance companies to pay a fee to cover the costs of administering these new laws so that this initiative will cost taxpayers nothing.”

Consumer Watchdog says the initiative is written to “ensure fair and transparent rates for health, home and auto insurance.”

There is another initiative gathering signatures at this time and it’s called “The 2012 Auto Insurance Discount Act” and one of its major financial supporters is George Joseph of Mercury General, parent of Mercury Insurance.  He backs the “pro-consumer” bill because it allows “portable persistency,” the ability to carry your good driving discounts from one carrier to another.

The ballot initiative’s official sponsor, the American Agents Alliance says the new law “will allow consumers to receive a discount for their years of continuous automobile coverage regardless of the company where they seek insurance.”

Stay tuned to see if both initiatives get on the ballot and what happens if they pass or fail, or any other combination.