Having been assigned a title and summary by the state attorney general's office, a proposed auto insurance initiative that would reward long-time policy holders for "continuous coverage" is one step closer to making it to the ballot in November 2012.

The action allows supporters of the American Agents Alliance to begin gathering the signatures required to put the issue before a public vote.

In short, the proposal will allow insurers to give discounts for prior coverage no matter what company provided it, and is similar to the unsuccessful Proposition 17 which was on the June 2010 ballot. But, the new proposal differs from Proposition 17 in several important ways.

Under the American Agents Alliance proposal, drivers can still be considered to have been "continuously covered" even if they have dropped coverage due to an absence for military service, have been uninsured for no more than 90 days in the past five years, have been uninsured for up to 18 months in the last five years because of loss of employment or are children living with parents who are eligible for the discount.

However, opponents of the proposal are claiming that it would actually hurt California motorists, and would punish consumers who have not had policies including low-income Californians and new drivers.

Santa Monica-based nonprofit group Consumer Watchdog issued a statement claiming the proposal "authorizes a currently prohibited surcharge on millions of California motorists who did not purchase insurance at some point in the prior five years, even if they had not been driving or did not own a car."

Attorney General Kamala Harris' office said in a press release that the measure would allow providers "to increase cost of insurance to drivers who have not maintained continuous coverage."

The proposal has become a big ticket issue for California motorists, but until supporters gather the more than 500,000 signatures to qualify for inclusion on the ballot, it will have no real substance.

—AJ Register