BILL NUMBER: AB 447 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 29, 2015
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 of 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 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. above, including, under
certain circumstances, the method of financing and source of income.
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 (a) An
admitted insurer, licensed to issue any policy of insurance
covered by this chapter, shall not 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 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; characteristic listed or defined in
subdivision (b) or (e) of Section 51 of the Civil 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,
any of those characteristics, of
itself, themselves, constitute a condition or
risk for which a higher rate, premium, or charge may be required of
the insured for that insurance.
(b) In the limited case of a policy of insurance for real property
designed for human habitation, the following shall also be
considered characteristics for the purposes of subdivision (a):
(1) The method of financing for the property insured or to be
insured.
(2) The level or source of income of an individual or group of
individuals residing or intending to reside upon the property insured
or to be insured.
(3) The receipt of assistance, intended for housing, from the
federal or state government, or from a local public entity, as
defined in Section 50079 of the Health and Safety Code, 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), by an
individual or group of individuals residing or intending to reside
upon the property insured or to be insured.
SEC. 2. Section 679.72 of the Insurance Code is amended to read:
679.72. (a) 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 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. any
characteristic listed or defined in subdivision (b) or (e) of Section
51 of the Civil Code with respect to the applicant.
(b) In the limited case of a policy of insurance for real property
designed for human habitation, the following shall also be
considered characteristics for the purposes of subdivision (a):
(1) The method of financing for the property insured or to be
insured.
(2) The level or source of income of an individual or group of
individuals residing or intending to reside upon the property insured
or to be insured.
(3) The receipt of assistance, intended for housing, from the
federal or state government, or from a local public entity, as
defined in Section 50079 of the Health and Safety Code, 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), by an
individual or group of individuals residing or intending to reside
upon the property insured or intending to be insured.
SEC. 3. Section 679.73 of the Insurance Code is amended to read:
679.73. 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 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.