BILL NUMBER: AB 447 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Maienschein
FEBRUARY 23, 2015
An act to amend Sections 679.71, 679.72, and 679.73 of, and to add
Section 679.74 to the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 447, as introduced, Maienschein. Property insurance:
discrimination.
Existing law prohibits an admitted insurer licensed to issue
policies of residential property insurance from failing or refusing
to accept an application for, or issuing a policy to an applicant
for, that insurance, except as specified, or from canceling the
insurance, under conditions less favorable to the insured than in
other comparable cases, except for reasons applicable alike to
persons of every sex, race, color, religion, ancestry, national
origin, disability, medical condition, genetic information, marital
status, or sexual orientation. Existing law provides that sex, race,
color, religion, ancestry, national origin, disability, medical
condition, genetic information, marital status, or sexual orientation
shall not, of itself, constitute a condition or risk for which a
higher rate, premium, or charge may be required of the insured.
Existing law also prohibits an application for one of these
policies, or an insurance investigation report, from carrying any
identification, or any requirement therefor, of the applicant's sex,
race, color, religion, ancestry, national origin, disability, medical
condition, genetic information, marital status, or sexual
orientation.
This bill would add certain other classifications and facts
relating to the insured or the insured property to the categories
that may not be used by an insurer for the purposes described above.
This bill would also prohibit insurers issuing policies of
commercial insurance for multifamily housing developments intended
for low and moderate income families or agricultural employees and
their families, as specified, from using a prohibited underwriting
classification, as defined, to fail or refuse an application or issue
a policy to an applicant, to cancel or fail to renew a policy, to
charge a higher rate, premium, or charge, or to impose different
requirements, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 679.71 of the Insurance Code is amended to
read:
679.71. No admitted insurer that is
insurer, licensed to issue any policy of insurance covered by
this chapter chapter, shall fail or
refuse to accept an application for, or to issue a policy to an
applicant for, that insurance (unless the insurance is to be issued
to the applicant by another insurer under the same management and
control), or cancel that insurance, under conditions less favorable
to the insured than in other comparable cases, except for reasons
applicable alike to persons of every characteristic listed
or defined in subdivision (b) or (e) of Section 51 of the Civil Code;
nor shall any of those characteristics, of itself, constitute a
condition or risk for which a higher rate, premium, or charge may be
required of the insured for that insurance. marital
status, sex, race, color, religion, national origin, sexual
orientation, creed, disability, familial status, medical
condition, ancestry, or any other characteristic listed in Section
51.5 of the Civil Code or Section 12920 of the Government Code; nor
shall marital status, sex, race, color, religion, national origin, or
ancestry, or any other characteristic listed in Section 51.5 of the
Civil Code or Section 12920 of the Government Code, of itself,
constitute a condition or risk for which a higher rate,
premium, or charge may be required of the insured for that insurance.
SEC. 2. Section 679.72 of the Insurance Code is amended to read:
679.72. No An application for
insurance specified in this chapter or insurance investigation report
furnished by an insurer to its agents or employees for use in
determining the insurability of an applicant shall not
carry any identification, or any requirement therefor, of
any characteristic listed or defined in subdivision (b) or (e) of
Section 51 of the Civil Code with respect to the applicant.
the applicant's sex, race, color, religion, national origin,
sexual orientation, creed, disability, familial status, medical
condition, ancestry, or any other characteristic listed in Section
51.5 of the Civil Code or Section 12920 of the Government Code.
SEC. 3. Section 679.73 of the Insurance Code is amended to read:
679.73. Nothing in this This
chapter shall not prohibit the use in an
application for insurance specified in this chapter of a question
asking for the birthplace of an applicant if such
that question is used only to identify the applicant and
not to discriminate against the applicant.
SEC. 4. Section 679.74 is added to the Insurance Code, to read:
679.74. (a) This section shall apply to any policy of commercial
insurance for multifamily housing developments intended for occupancy
by persons and families of low and moderate income, as defined in
Sections 50073, 50073.5, and 50093 of the Health and Safety Code, or
agricultural employees, as defined in subdivision (b) of Section
1140.4 of the Labor Code, and their families that covers risks
arising from the ownership, construction, habitation, or other use of
real property designed for human habitation on either a temporary or
permanent basis, including any liability for loss of, damage to, or
injury to, persons or property that occurs on that real property.
(b) For the purposes of this section, "prohibited underwriting
classification" means any of the following:
(1) All the protected classes in Section 679.71.
(2) The income level or source of income, including, but not
limited to, federal vouchers issued under Section 8 of the United
States Housing Act of 1937 (42 U.S.C. Sec. 1437f), of an individual
or group of individuals residing or to reside upon property insured
or to be insured by, a policy of insurance covered by this section.
(3) The intended residency upon the property insured or to be
insured by persons who require or will benefit from supportive
services that may be provided on site.
(4) The fact that the construction or operation of the real
property, or any portion thereof, is subsidized, financed, insured,
or otherwise assisted by the federal or state government, or by a
local public entity, as defined in Section 50079 of the Health and
Safety Code.
(5) The fact that an applicant or insured is organized under the
Nonprofit Corporation Law (Division 2 (commencing with Section 5000)
of the Corporations Code). The amount of rent charged to an
individual or group of individuals residing or who will reside upon
property insured or to be insured by a policy of insurance covered by
this section.
(6) The amount of rent charged to an individual or group of
individuals residing, or who will reside, upon property insured, or
to be insured, by a policy of insurance covered by this section.
(c) An insurer meeting the criteria of subdivision (a) shall not
use a prohibited underwriting classification to do any of the
following:
(1) Fail or refuse to accept an application or issue a policy to
an applicant for, or otherwise make unavailable, any insurance
covered by this chapter, unless the insurance is to be issued to the
applicant by another insurer under the same management and control.
(2) Cancel or fail to renew any insurance covered by this section.
(3) Impose a rate, premium, or charge that is higher than that
imposed with respect to other applicants, insureds, or insured
properties.
(4) Impose different requirements on an applicant for insurance
covered by this chapter than it imposes on other applicants, except
as provided in subdivision (d).
(d) This section shall not be construed to prohibit any admitted
insurer licensed to issue any policy of insurance covered by this
chapter from extending preferential treatment to real property
designed for human habitation that is assisted by the federal or
state government, or by a local public entity, as defined in Section
50079 of the Health and Safety Code, or other real property intended
for occupancy by persons and families of low and moderate income, as
defined in Section 50093 of the Health and Safety Code, or
agricultural employees, as defined in subdivision (b) of Section
1140.4 of the Labor Code, and their families.