Amended in Assembly April 29, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 447


Introduced by Assembly Member Maienschein

February 23, 2015


An act to amend Sections 679.71, 679.72, and 679.73begin delete of, and to add Section 679.74 toend deletebegin insert ofend insert the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 447, as amended, 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 otherbegin delete classifications andend delete facts relating to the insured or the insured property to the categories that may not be used by an insurer for the purposes describedbegin delete above.end deletebegin insert above, including, under certain circumstances, the method of financing and source of income.end insert

begin delete

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.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 679.71 of the Insurance Code is amended
2to read:

3

679.71.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertAn end insertadmitted insurer, licensed to issue any policy
4of insurance covered by this chapter, shallbegin insert notend insert fail or refuse to
5accept an application for, or to issue a policy to an applicant for,
6that insurance (unless the insurance is to be issued to the applicant
7by another insurer under the same management and control), or
8cancel that insurance, under conditions less favorable to the insured
9than in other comparable cases, except for reasons applicable alike
10to persons of everybegin delete marital status, sex, race, color, religion, national
11origin, sexual orientation, creed, disability, familial status, medical
12condition, ancestry, or any other characteristic listed in Section
1351.5 of the Civil Code or Section 12920 of the Government Code;end delete

14begin insert characteristic listed or defined in subdivision (b) or (e) of Section
1551 of the Civil Code;end insert
nor shallbegin delete marital status, sex, race, color,
16religion, national origin, or ancestry, or any other characteristic
17listed in Section 51.5 of the Civil Code or Section 12920 of the
18Government Code,end delete
begin insert any of those characteristics,end insert ofbegin delete itself,end delete
19begin insert themselves,end insert constitute a condition or risk for which a higher rate,
20premium, or charge may be required of the insured for that
21insurance.

begin insert

P3    1(b) In the limited case of a policy of insurance for real property
2designed for human habitation, the following shall also be
3considered characteristics for the purposes of subdivision (a):

end insert
begin insert

4(1) The method of financing for the property insured or to be
5insured.

end insert
begin insert

6(2) The level or source of income of an individual or group of
7 individuals residing or intending to reside upon the property
8insured or to be insured.

end insert
begin insert

9(3) The receipt of assistance, intended for housing, from the
10federal or state government, or from a local public entity, as
11defined in Section 50079 of the Health and Safety Code, including,
12but not limited to, federal vouchers issued under Section 8 of the
13United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
14individual or group of individuals residing or intending to reside
15upon the property insured or to be insured.

end insert
16

SEC. 2.  

Section 679.72 of the Insurance Code is amended to
17read:

18

679.72.  

begin insert(a)end insertbegin insertend insertAn application for insurance specified in this
19chapter or insurance investigation report furnished by an insurer
20to its agents or employees for use in determining the insurability
21of an applicant shall not carry any identification, or any
22requirement therefor, ofbegin delete the applicant’s sex, race, color, religion,
23national origin, sexual orientation, creed, disability, familial status,
24medical condition, ancestry, or any other characteristic listed in
25Section 51.5 of the Civil Code or Section 12920 of the Government
26Code.end delete
begin insert any characteristic listed or defined in subdivision (b) or (e)
27of Section 51 of the Civil Code with respect to the applicant.end insert

begin insert

28(b) In the limited case of a policy of insurance for real property
29designed for human habitation, the following shall also be
30considered characteristics for the purposes of subdivision (a):

end insert
begin insert

31(1) The method of financing for the property insured or to be
32insured.

end insert
begin insert

33(2) The level or source of income of an individual or group of
34individuals residing or intending to reside upon the property
35insured or to be insured.

end insert
begin insert

36(3) The receipt of assistance, intended for housing, from the
37federal or state government, or from a local public entity, as
38defined in Section 50079 of the Health and Safety Code, including,
39but not limited to, federal vouchers issued under Section 8 of the
40United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
P4    1individual or group of individuals residing or intending to reside
2upon the property insured or intending to be insured.

end insert
3

SEC. 3.  

Section 679.73 of the Insurance Code is amended to
4read:

5

679.73.  

This chapter shall not prohibit the use in an application
6for insurance specified in this chapter of a question asking for the
7birthplace of an applicant if that question is used only to identify
8the applicant and not to discriminate against the applicant.

begin delete
9

SEC. 4.  

Section 679.74 is added to the Insurance Code, to read:

10

679.74.  

(a) This section shall apply to any policy of
11commercial insurance for multifamily housing developments
12intended for occupancy by persons and families of low and
13moderate income, as defined in Sections 50073, 50073.5, and
1450093 of the Health and Safety Code, or agricultural employees,
15as defined in subdivision (b) of Section 1140.4 of the Labor Code,
16and their families that covers risks arising from the ownership,
17construction, habitation, or other use of real property designed for
18human habitation on either a temporary or permanent basis,
19including any liability for loss of, damage to, or injury to, persons
20or property that occurs on that real property.

21(b) For the purposes of this section, “prohibited underwriting
22classification” means any of the following:

23(1) All the protected classes in Section 679.71.

24(2) The income level or source of income, including, but not
25limited to, federal vouchers issued under Section 8 of the United
26States Housing Act of 1937 (42 U.S.C. Sec. 1437f), of an individual
27or group of individuals residing or to reside upon property insured
28or to be insured by, a policy of insurance covered by this section.

29(3) The intended residency upon the property insured or to be
30insured by persons who require or will benefit from supportive
31services that may be provided on site.

32(4) The fact that the construction or operation of the real
33property, or any portion thereof, is subsidized, financed, insured,
34or otherwise assisted by the federal or state government, or by a
35local public entity, as defined in Section 50079 of the Health and
36Safety Code.

37(5) The fact that an applicant or insured is organized under the
38Nonprofit Corporation Law (Division 2 (commencing with Section
395000) of the Corporations Code). The amount of rent charged to
40an individual or group of individuals residing or who will reside
P5    1upon property insured or to be insured by a policy of insurance
2covered by this section.

3(6) The amount of rent charged to an individual or group of
4individuals residing, or who will reside, upon property insured, or
5to be insured, by a policy of insurance covered by this section.

6(c) An insurer meeting the criteria of subdivision (a) shall not
7use a prohibited underwriting classification to do any of the
8following:

9(1) Fail or refuse to accept an application or issue a policy to
10an applicant for, or otherwise make unavailable, any insurance
11covered by this chapter, unless the insurance is to be issued to the
12applicant by another insurer under the same management and
13control.

14(2) Cancel or fail to renew any insurance covered by this section.

15(3) Impose a rate, premium, or charge that is higher than that
16imposed with respect to other applicants, insureds, or insured
17properties.

18(4) Impose different requirements on an applicant for insurance
19covered by this chapter than it imposes on other applicants, except
20as provided in subdivision (d).

21(d) This section shall not be construed to prohibit any admitted
22insurer licensed to issue any policy of insurance covered by this
23chapter from extending preferential treatment to real property
24designed for human habitation that is assisted by the federal or
25state government, or by a local public entity, as defined in Section
2650079 of the Health and Safety Code, or other real property
27intended for occupancy by persons and families of low and
28moderate income, as defined in Section 50093 of the Health and
29Safety Code, or agricultural employees, as defined in subdivision
30(b) of Section 1140.4 of the Labor Code, and their families.

end delete


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