BILL ANALYSIS
AB 1193
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1193 (Steinberg)
As Amended June 13, 2001
Majority vote
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|ASSEMBLY: |71-0 |(May 29, 2001) |SENATE: |28-2 |(July 19, |
| | | | | |2001) |
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Original Committee Reference: INS.
SUMMARY : Prohibits insurers from canceling or refusing to renew a
policy of a religious or educational organization or other nonprofit
organization organized and operated for religious, charitable, or
educational 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.
The Senate amendments :
1)Specify that this bill applies to insurance policies of religious
organizations, educational organizations, or other nonprofit
organizations, as defined by federal tax rules that are organized
and operated for religious, charitable, or educational purposes.
2)List, but do not limit, those acts that may be determined by law
enforcement to be a hate crime.
3)Delete the requirement that upon cancellation or nonrenewal of a
policy after an insured has submitted a claim that is the result
of a hate crime the insurer must provide the Insurance
Commissioner (IC) with any related information required by the IC
pursuant to regulations adopted by the IC.
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.
2)Provides that certain actions constitute unfair methods of
competition and unfair and deceptive acts or practices in the
AB 1193
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business of insurance, and specifies certain penalties and powers
of the IC relative to these actions.
AS PASSED BY THE ASSEMBLY , this bill prohibited 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)Prohibited 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)Provided that whether an act constitutes a hate crime is
determined by a law enforcement officer or agency.
3)Defined "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; 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.
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1)Required insurers to report to the IC the cancellation or
non-renewal of a policy after an insured has submitted a claim
resulting from a hate crime. Required insurers to provide the IC
with any related information required by the IC pursuant to
regulations adopted by the IC.
2)Clarified that insurers are not precluded from canceling or
refusing to renew a policy based on valid, lawful criteria.
3)Provided 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.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
minor, absorbable costs.
COMMENTS : The Senate amendments clarify which entities are covered
by this bill by referencing a specific section of the United State
Code dealing with the federal tax rules relating to charitable
contributions. In addition, the Senate amendments broaden the
definition of "hate crime" by listing, rather than limiting, the
acts that may constitute hate crimes. The Senate amendments also
delete the provision that the IC adopt regulations to implement this
bill and remove the requirement that insurers, who cancel or
nonrenew policies after a hate crime, must provide the IC with
additional information required by the IC pursuant to those
regulations. Lastly, the Senate amendments make technical,
non-substantive changes.
Analysis Prepared by : M. Christine Iway / INS. / (916) 319-2086
FN: 0001849