Amended in Senate June 30, 2015

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

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(Coauthor: Assembly Member Cooley)

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February 23, 2015


An act to add Section 679.74 to 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, for specified types of real property, add certain otherbegin delete factsend deletebegin insert characteristicsend insert 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, the level or source of income and the receipt of government or publicbegin delete assistance.end deletebegin insert assistance by an individual or group of individuals residing or intending to reside upon the property, as specified.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:

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SECTION 1.  

Section 679.74 is added to the Insurance Code,
2to read:

3

679.74.  

(a) begin delete(1)end deletebegin deleteend deleteAn admitted insurer that is licensed to issue a
4policy 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
12 that insurance, based upon the following characteristics:

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13 13(A)

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14begin insert(1)end insert The level or source of income of an individual or group of
15individuals residing or intending to reside upon the property to be
16insured, if the individual or group of individuals is not the owner
17of the real property.

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17 18(B)

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19begin insert(2)end insert The receipt of assistance, intended for housing, from the
20federal or state government, or from a local public entity, as defined
21in Section 50079 of the Health and Safety Code, including, but
22not limited to, federal vouchers issued under Section 8 of the
23United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
24individual or group of individuals residing or intending to reside
25upon the property insured or to be insured.

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P3    1(2) The characteristics listed in subparagraphs (A) and (B) of
2paragraph (1) shall not constitute a condition or risk for which a
3higher rate, premium, or charge may be required of the insured for
4a policy of insurance upon real property of the type described in
5paragraph (1).

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6(b) An application for a policy of insurance upon real property
7of the type described inbegin delete paragraph (1) ofend delete subdivision (a), or an
8insurance investigation report furnished by an insurer to its agents
9or employees for use in determining the insurability of an applicant
10under such a policy, shall not carry any identification, or any
11requirement for identification, of the following characteristics:

12(1) The level or source of income of an individual or group of
13individuals residing or intending to reside upon the property to be
14insured, if the individual or group of individuals is not the owner
15of the real property.

16(2) The receipt of assistance, intended for housing, from the
17federal or state government, or from a local public entity, as defined
18in Section 50079 of the Health and Safety Code, including, but
19not limited to, federal vouchers issued under Section 8 of the
20United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an
21individual or group of individuals residing or intending to reside
22upon the property insured or to be insured.

23(c) In the case of real property of the type described in paragraph
24(1) of subdivision (a) of Section 675, paragraph (1) of subdivision
25(b) of Section 675.5, or subdivision (a) of Section 10087 that is
26used for both residential and commercial purposes, the insurer, or
27its agent or employee, may consider the source of income of a
28nonresidential tenant of the property in determining the insurability
29of an applicant.

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30(d) Nothing in this section prohibits an insurer from failing or
31refusing to accept an application for, issuing, or canceling or
32failing to renew, a policy of insurance covered by this chapter as
33a result of underwriting or assessment of factors other than those
34characteristics listed in subdivision (a), or as otherwise prohibited
35by law.

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