BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1193
                                                                  Page  1

          Date of Hearing:   May 23, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                   AB 1193 (Steinberg) - As Amended:  May 8, 2001 

          Policy Committee:                               
          InsuranceVote:15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill prohibits insurers from canceling or refusing to renew  
          a policy of a place of worship or nonprofit organization solely  
          on the basis that the policyholder has filed one or more claims  
          for damage resulting from a hate crime.

           FISCAL EFFECT  

          Minor, absorbable enforcement costs to the Insurance  
          Commissioner.

           COMMENTS  

           1)Background  .  The state attorney general reports that hate  
            crimes were linked to 1,329 incidents of violence and 633  
            property losses in California in 1999.  In the author's  
            district, the library and sanctuary of Temple B'Nai Israel in  
            Sacramento was severely damaged in a fire started by  
            self-proclaimed white supremacists in 1999.  The temple's  
            insurer renewed its policy 11 days after the attack, but on  
            May 31, 2000, the insurer informed the temple that its policy  
            would not be renewed for "Underwriting Reasons."  While coping  
            with the aftermath of this crime and making arrangements to  
            rebuild, the temple also had to search for a new insurer.  

           2)Purpose  .  This bill is intended to protect victims of hate  
            crimes from discrimination by insurers. The author points out  
            that under current law, victims of domestic violence are  
            protected from adverse insurance consequences based on their  
            status as victims of domestic violence.  This bill would not  
            prevent insurance companies from raising rates in connection  








                                                                  AB 1193
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            with hate crimes. 



           Analysis Prepared by  :    Stephen Shea / APPR. / (916) 319-2081