The State : Aetna Ends Its Moratorium

Aetna Life & Casualty, the ninth-largest seller of property and casualty insurance in California, said that it is resuming sales to new customers of auto, homeowner and commercial liability policies. The announcement ended a two-week moratorium on such sales while the company evaluated how the state Supreme Court decision upholding most of Proposition 103 would be enforced. A company spokesman said Aetna had concluded from statements made May 11 by state Insurance Commissioner Roxani Gillespie that the state intends to allow the insurance industry a fair rate of return in California for each line of insurance. Numerous insurers have expressed satisfaction at Gillespie’s decision to allow a profit for each line of insurance, while a number of consumer groups have criticized the decision.