BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 447

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          447 (Maienschein)

          As Amended  June 30, 2015

          Majority vote

          |ASSEMBLY:  | 75-4 | (June 4,      |SENATE: |30-2  | (August 31,     |
          |           |      |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |

          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  

          Analysis Prepared by:                                             
          Mark Rakich / INS. / (916) 319-2086  FN: 0001230


                                                                     AB 447

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