BILL ANALYSIS
AB 1193
Page 1
ASSEMBLY THIRD READING
AB 1193 (Steinberg)
As Amended May 8, 2001
Majority vote
INSURANCE 15-0 APPROPRIATIONS 21-0
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|Ayes:|Calderon, Maddox, Bogh, |Ayes:|Migden, Daucher, Alquist, |
| |Briggs, John Campbell, | |Aroner, Ashburn, Cedillo, |
| |Chavez, Diaz, Dutra, | |Corbett, Correa, |
| |Frommer, Harman, Havice, | |Dickerson, Goldberg, |
| |Kehoe, Richman, | |Maldonado, Robert |
| |Steinberg, Vargas | |Pacheco, Papan, Pavley, |
| | | |Runner, Simitian, |
| | | |Thomson, Wesson, Wiggins, |
| | | |Wright, Zettel |
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SUMMARY : 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. Specifically,
this bill :
1)Prohibits insurers from canceling or refusing to renew a
policy of a church, synagogue, temple, or other place of
worship, or a nonprofit entity organized for religious,
charitable, educational, or health purposes solely on the
basis that one or more claims has been made as a result of a
hate crime committed against the person or property of the
insured during the preceding five years.
2)Provides that whether an act constitutes a hate crime is
determined by a law enforcement officer or agency.
3)Defines "hate crime" to include any of the following:
a) By force or threat of force, willfully injure,
intimidate, interfere with, oppress, or threaten any other
person in the free exercise or enjoyment of any right or
privilege secured to him or her by the Constitution or laws
of this state, or by the Constitution or laws of the United
States, because of the other person's race, color,
religion, ancestry, national origin, disability, gender, or
AB 1193
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sexual orientation, or because he or she perceives that the
other person has one or more of those characteristics.
However, the foregoing offense does not include speech
alone, except upon a showing that the speech itself
threatened violence against a specific person or group of
persons and that the defendant had the apparent ability to
carry out the threat; and,
b) Knowingly, deface, damage, or destroy the real or
personal property of any other person for the purpose of
intimidating or interfering with the free exercise or
enjoyment of any right or privilege secured to the other
person by the Constitution or laws of this state, or by the
Constitution or laws of the United States, because of the
other person's race, color, religion, ancestry, national
origin, disability, gender, or sexual orientation, or
because he or she perceives that the other person has one
or more of those characteristics
1)Requires insurers to report to the Insurance Commissioner (IC)
the cancellation or non-renewal of a policy after an insured
has submitted a claim resulting from a hate crime. Requires
insurers to provide the IC with any related information
required by the IC pursuant to regulations adopted by the IC.
2)Clarifies that insurers are not precluded from canceling or
refusing to renew a policy based on valid, lawful criteria.
3)Provides that canceling or refusing to renew a policy of a
place of worship or a nonprofit entity organized for
religious, charitable, educational, or health purposes solely
on the basis that one or more claims has been made as a result
of a hate crime committed against the person or property of
the insured during the preceding five years constitutes an
unfair method of competition and an unfair and deceptive act
or practice in the business of insurance.
EXISTING LAW :
1)Imposes limitations on insurers relative to cancellation or
non-renewal of policies protecting against certain
residential, liability, and commercial risks, including
policies held by victims of domestic violence.
AB 1193
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2)Provides that certain actions constitute unfair methods of
competition and unfair and deceptive acts or practices in the
business of insurance, and specifies certain penalties and
powers of the IC relative to these actions.
FISCAL EFFECT : According to the Appropriations Committee,
minor, absorbable costs.
COMMENTS: This bill was introduced to protect victims of hate
crimes from discrimination by insurers. The author believes
that a victim of a hate crime, who often is still trying to
recover from the crime, is punished twice when the victim's
insurer cancels or refuses to renew the policy, forcing the
victim to seek a new insurance policy, usually at a much higher
rate than its previous policy. The author has also pointed out
that under current law victims of domestic violence are
protected from adverse insurance consequences based on their
status as victims of domestic violence.
An argument in opposition to this bill is that provisions
relating to the reporting requirement and the IC's authority to
develop regulations with respect to the cancellation or
nonrenewal of policies is unnecessary and could have
unanticipated and far-reaching consequences.
Analysis Prepared by : M. Christine Iway / INS. / (916)
319-2086
FN: 0001007