Garamendi

In these consolidated appeals, we affirm orders of the former Insurance Commissioner (Commissioner) and trial court which (1) *1413 required the appellant insurer to accept assignment of automobile insurance risks on a statewide basis; and (2) created, and thereafter suspended prospectively, a special Urban Credit Program for risk assignments in certain urban areas. These actions of the Commissioner were consistent with her statutory duties, were neither arbitrary nor capricious, and were supported by substantial evidence in the administrative record.

I. Facts and Procedural History

Before discussing the merits, we will first briefly summarize (a) the most relevant statutes and regulations governing the assignment of automobile risks, in order to provide necessary background; (b) the actions of the Commissioner which are in issue here; and (c) the procedural background of these appeals.

A. The Assigned Risk Plan

The California Automobile Assigned Risk Plan (CAARP) was originally created by the Legislature to provide insurance to “those marginal motorists who, because they were considered ‘bad risks,’ were otherwise unable to secure and maintain such insurance.” These…