CA AB1054

Excludes credit card processing expenses paid by insurers from the calculation of the insurer's efficiency standard when determining motor vehicle insurance rates.

Applies to expenses incurred when insureds pay premiums by credit card, as defined in Civil Code Section 1747.02.

Finds that excluding these expenses encourages insurers to accept credit card payments and helps keep insurance affordable during economic hardship.

Requires a 2/3 vote of each house of the Legislature for enactment because it amends Proposition 103.