BILL ANALYSIS
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THIRD READING
Bill No: AB 1193
Author: Steinberg (D), et al
Amended: 6/13/01 in Senate
Vote: 21
SENATE INSURANCE COMMITTEE : 4-1, 6/20/01
AYES: Speier, Figueroa, Scott, Soto
NOES: Oller
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 71-0, 5/29/01 - See last page for vote
SUBJECT : Insurers: hate crimes: cancellation
SOURCE : Author
DIGEST : This bill prohibits insurers from canceling or
refusing to renew a policy held by a religious or
educational organization or other nonprofit solely on the
basis that the policyholder has filed one or more claims
for damage resulting from a hate crime.
ANALYSIS : This bill:
1.Prohibits insurers from canceling or refusing to renew a
policy 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 if the insured is a religious or
educational organization or other nonprofit organization
CONTINUED
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organized and operated for religious, charitable, or
educational purposes.
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 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.
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.
4.Requires insurers to report to the Insurance Commissioner
the cancellation or non-renewal of a policy after an
insured has submitted a claim resulting from a hate
crime.
5.Clarifies that insurers are not precluded from canceling
or refusing to renew a policy based on valid, lawful
criteria.
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6.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;
and 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 Insurance Commissioner
relative to these actions.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/9/01)
Consumer Attorneys of California
California Alliance for Pride and Equality
California Labor Federation, AFL-CIO
Personal Insurance Federation
Jewish Public Affairs Committee of California
Protection and Advocacy, Inc.
Planned Parenthood Affiliates of California
State Department of Insurance
Lambda letters
ARGUMENTS IN SUPPORT : The author points to a June 1999
arson attack at Temple B'Nai Israel, Sacramento, that
gutted a library, Temple offices and a sanctuary. Two
other area synagogues were also struck that night by the
arsonists who were eventually arrested and charged with
murdering a gay couple in Redding. The FBI later
determined that B'Nai Israel was the victim of a hate
crime. B'Nai Israel's renewed its insurance policy 11 days
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after the attack. But in May 2000, shortly prior to the
annual renewal date, the carrier informed Temple officials
that it would not renew the policy for "underwriting
reasons". The insurer broke the arson attack into multiple
claims and, as such, premiums were increased to reflect
multiple claims that led to underwriting difficulties.
Several carriers contracted by Temple officials declined to
offer coverage based on the claim history, according to the
author. The author also states that in 1999, hate crimes
were linked to 1,329 incidents of violence and 633 property
losses in California.
The Personal Insurance Federation of California (PIFC)
supports the bill, noting that it is not aware of any
insurer that currently makes it a practice to violate the
intent of this bill. While PIFC expresses concern about
government restrictions on the underwriting judgment, it
considers the firebomb attack on B'nai Israel "one of the
most heinous acts" in Sacramento history, and, therefore,
it views this bill as part of the community healing
process.
ASSEMBLY FLOOR
AYES: Aanestad, Alquist, Aroner, Ashburn, Bogh, Calderon,
John Campbell, Canciamilla, Cardenas, Cardoza, Cedillo,
Chavez, Chu, Cogdill, Cohn, Correa, Cox, Daucher, Diaz,
Dickerson, Dutra, Firebaugh, Frommer, Goldberg, Harman,
Havice, Horton, Jackson, Keeley, Kehoe, Kelley, Koretz,
La Suer, Leach, Leonard, Leslie, Liu, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Migden, Mountjoy,
Nakano, Nation, Negrete McLeod, Oropeza, Robert Pacheco,
Rod Pacheco, Papan, Pavley, Pescetti, Reyes, Richman,
Runner, Salinas, Shelley, Simitian, Steinberg,
Strom-Martin, Thomson, Vargas, Washington, Wayne, Wesson,
Wiggins, Wright, Wyland, Wyman, Zettel
DLW:kb 7/10/01 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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