BILL ANALYSIS Ó
AB 447
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CONCURRENCE IN SENATE AMENDMENTS
AB
447 (Maienschein)
As Amended June 30, 2015
Majority vote
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|ASSEMBLY: | 75-4 | (June 4, |SENATE: |30-2 | (August 31, |
| | |2015) | | |2015) |
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Original Committee Reference: INS.
SUMMARY: Prohibits discrimination based on renters' receipt of
"Section 8" or related public rent subsidies in the application
for or issuance of insurance policies covering real property
designed for human habitation.
The Senate amendments:
1)Delete the prohibition on using this bill's prohibited factors
for purposes of pricing insurance.
2)Clarify that nothing in this bill prohibits using factors not
prohibited by this bill, even if the prohibited factors are a
characteristic of the property.
AB 447
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EXISTING LAW:
1)Prohibits an insurer from using sex, race, color, religion,
ancestry, national origin, disability, medical condition,
genetic information, marital status, or sexual orientation
under conditions less favorable to the insured than in other
comparable cases, for purposes of accepting applications for,
issuing policies of, canceling policies of property or
commercial insurance.
2)Prohibits using any of these characteristics as a condition or
risk to justify charging a policyholder a higher rate,
premium, or charge for the insurance.
FISCAL EFFECT: Undetermined. This bill is keyed non-fiscal by
the Legislative Counsel.
COMMENTS: The Senate amendments narrow this bill by eliminating
the prohibition on using Section 8 status as a basis for rating
policies. As a practical effect, it is unlikely that Section 8
status, of itself, would pass muster in the Proposition 103
(1988) rate review process administered by the Department of
Insurance. Some insurers prefer to use Section 8 status of
renters as a surrogate for other, more specific factors, or as a
"red flag" to conduct additional investigation to evaluate
"condition of the property" issues that may be legitimate rating
factors.
Analysis Prepared by:
Mark Rakich / INS. / (916) 319-2086 FN: 0001230
AB 447
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