Amended in Assembly June 2, 2015

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 tobegin delete amend Sections 679.71, 679.72, and 679.73 ofend deletebegin insert add Section 679.74 toend 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 billbegin delete wouldend deletebegin insert would, for specified types of real property,end insert add certain other 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, including, under certain circumstances, thebegin delete method of financing and source of income.end deletebegin insert level or source of income and the receipt of government or public assistance.end insert

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 679.74 is added to the end insertbegin insertInsurance Codeend insertbegin insert,
2to read:end insert

begin insert
3

begin insert679.74.end insert  

(a) (1) An admitted insurer that is licensed to issue
4a policy of insurance upon real property of the type described in
5paragraph (1) of subdivision (a) of Section 675 or paragraph (1)
6of subdivision (b) of Section 675.5, when that real property is used
7for residential purposes, or property of the type described in
8subdivision (a) of Section 10087, shall not fail or refuse to accept
9an application for, or to issue a policy to an applicant for, that
10insurance unless the insurance is to be issued to the applicant by
11another insurer under the same management and control, or cancel
12that insurance, based upon the following characteristics:

13(A) The level or source of income of an individual or group of
14individuals residing or intending to reside upon the property to
15be insured, if the individual or group of individuals is not the owner
16of the real property.

17(B) The receipt of assistance, intended for housing, from the
18federal or state government, or from a local public entity, as
19defined in Section 50079 of the Health and Safety Code, including,
20but not limited to, federal vouchers issued under Section 8 of the
21United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
22individual or group of individuals residing or intending to reside
23upon the property insured or to be insured.

24(2) The characteristics listed in subparagraphs (A) and (B) of
25paragraph (1) shall not constitute a condition or risk for which a
26higher rate, premium, or charge may be required of the insured
P3    1for a policy of insurance upon real property of the type described
2in paragraph (1).

3(b) An application for a policy of insurance upon real property
4of the type described in paragraph (1) of subdivision (a), or an
5insurance investigation report furnished by an insurer to its agents
6or employees for use in determining the insurability of an applicant
7under such a policy, shall not carry any identification, or any
8requirement for identification, of the following characteristics:

9(1) The level or source of income of an individual or group of
10individuals residing or intending to reside upon the property to
11be insured, if the individual or group of individuals is not the owner
12of the real property.

13(2) The receipt of assistance, intended for housing, from the
14federal or state government, or from a local public entity, as
15defined in Section 50079 of the Health and Safety Code, including,
16but not limited to, federal vouchers issued under Section 8 of the
17United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
18individual or group of individuals residing or intending to reside
19upon the property insured or to be insured.

20(c) In the case of real property of the type described in
21paragraph (1) of subdivision (a) of Section 675, paragraph (1) of
22subdivision (b) of Section 675.5, or subdivision (a) of Section
2310087 that is used for both residential and commercial purposes,
24the insurer, or its agent or employee, may consider the source of
25income of a nonresidential tenant of the property in determining
26the insurability of an applicant.

end insert
begin delete
27

SECTION 1.  

Section 679.71 of the Insurance Code is amended
28to read:

29

679.71.  

(a) An admitted insurer, licensed to issue any policy
30of insurance covered by this chapter, shall not fail or refuse to
31accept an application for, or to issue a policy to an applicant for,
32that insurance (unless the insurance is to be issued to the applicant
33by another insurer under the same management and control), or
34cancel that insurance, under conditions less favorable to the insured
35than in other comparable cases, except for reasons applicable alike
36to persons of every characteristic listed or defined in subdivision
37(b) or (e) of Section 51 of the Civil Code; nor shall any of those
38characteristics, of themselves, constitute a condition or risk for
39which a higher rate, premium, or charge may be required of the
40insured for that insurance.

P4    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):

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

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

9(3) The receipt of assistance, intended for housing, from the
10federal or state government, or from a local public entity, as defined
11in Section 50079 of the Health and Safety Code, including, but
12not 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.

16

SEC. 2.  

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

18

679.72.  

(a) An 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, of any characteristic listed or defined in
23subdivision (b) or (e) of Section 51 of the Civil Code with respect
24to the applicant.

25(b) In the limited case of a policy of insurance for real property
26designed for human habitation, the following shall also be
27considered characteristics for the purposes of subdivision (a):

28(1) The method of financing for the property insured or to be
29insured.

30(2) The level or source of income of an individual or group of
31individuals residing or intending to reside upon the property insured
32or to be insured.

33(3) The receipt of assistance, intended for housing, from the
34federal or state government, or from a local public entity, as defined
35in Section 50079 of the Health and Safety Code, including, but
36not limited to, federal vouchers issued under Section 8 of the
37United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
38individual or group of individuals residing or intending to reside
39upon the property insured or intending to be insured.

P5    1

SEC. 3.  

Section 679.73 of the Insurance Code is amended to
2read:

3

679.73.  

This chapter shall not prohibit the use in an application
4for insurance specified in this chapter of a question asking for the
5birthplace of an applicant if that question is used only to identify
6the applicant and not to discriminate against the applicant.

end delete


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