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U.S. Supreme Court

California Auto. Assn. v. Maloney, 341 U.S. 105 (1951)

California State Automobile Association

Inter-Insurance Bureau v. Maloney

No. 310

Argued March 8, 1951

Decided April 23, 1951

341 U.S. 105


The California Compulsory Assigned Risk Law requires all insurers transacting liability insurance in the State to participate in a plan for the equitable apportionment among them of those applicants for automobile liability insurance who are in good faith entitled to such insurance (to enable them to retain drivers' licenses) but are unable to procure it through ordinary methods. Uninsurable risks are excluded from the plan, policies issued may be limited to coverages of $5,000-$10,000, and premiums commensurate with abnormal risks may be charged. Appellant is an unincorporated association engaged in writing reciprocal liability insurance solely for members of an automobile club having a selected membership, and the plan would require it to write insurance for nonmembers of the club who are poor risks.

Held: as applied to appellant, the statute does not violate the Due Process Clause of the Fourteenth Amendment. Pp. 341 U. S. 106-111.

96 Cal.App.2d 876, 216 P.2d 882, affirmed.

A California court sustained the California Compulsory Assigned Risk Law, Cal.Stat. 1947, c. 39, p. 525, as amended, against a claim that it violated the Due Process Clause of the Fourteenth Amendment. 96 Cal.App.2d 876, 216 P.2d 882. On appeal to this Court, affirmed, p. 341 U. S. 111.

Page 341 U. S. 106

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