
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, August 20, 1994                   TAG: 9408220094
SECTION: BUSINESS                    PAGE: A6   EDITION: METRO 
SOURCE: 
DATELINE: NEW YORK                                 LENGTH: Short

INSURANCE RATE RULING STRIKES FEAR

A California court ruling that upheld tough limits on insurance rates traumatized insurers nationwide Friday by raising the prospect of similar reforms elsewhere. Consumer groups expressed delight.

Insurance industry groups sounded alarms about the ruling in the nation's biggest state, saying it would have a ripple effect that could hurt their profits and make it harder for them to do busines.

``As California goes, so goes the nation,'' said Steve Goldstein, a spokesman for the Insurance Information Institute, a research group representing 250 companies. ``This will likely cause other state regulators to determine whether they can also be successful in trying to get rebates or cap profits.''

Consumer advocacy groups and other state insurance regulators said the decision sends a strong message that insurers cannot gouge their customers.

- Associated Press

by CNB