BILL ANALYSIS
SENATE COMMITTEE ON INSURANCE
Senator Jackie Speier, Chair
AB 996 (Wiggins) Hearing Date: July 2,
2003
As Amended: May 12, 2003
Fiscal: No
Urgency: No
VOTES:Asm. Ins. (5/7/03): 13-6
Asm. Floor (5/15/03): 49-23
SUMMARY
Extends to reproductive health services facilities an
existing prohibition on insurers from canceling or refusing
to renew a property insurance policy due to property
casualty claims arising from specified hate crimes, and
further prohibits an insurer from imposing an excessive or
unfairly discriminatory premium because the facility has
been the victim of a hate crime.
DIGEST
Existing law
1. Prohibits insurers from canceling or refusing to renew
a property insurance policy of a religious or
educational organization or other nonprofit
organization 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. Defines "hate crime," as used in this context, to
mean 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
California or United States (U.S.) Constitutions
because of the person's race, color, religion,
ancestry, national origin, disability, gender, or
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sexual orientation, or because he or she perceives that
the other person has one or more of those
characteristics; and,
b) To 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 California or U.S. Constitutions
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.
3. Defines "anti-reproductive rights crime" to mean a
crime committed partly or wholly because the victim is
a reproductive health services client, provider, or
assistant, or a crime that is partly or wholly intended
to intimidate the victim, any other person or entity,
or any class of persons or entities from becoming or
remaining a reproductive health services client,
provider, or assistant.
4. Requires the insurer, upon cancellation of or refusal
to renew a policy after an insured has submitted a
claim to the insurer that is the result of a hate
crime, to report the cancellation or nonrenewal to the
Insurance Commissioner.
5. Provides that a violation of the above-described
provisions constitutes an unfair practice.
6. Clarifies that insurers are not precluded from
canceling or refusing to renew a policy based on valid,
lawful criteria.
7. Provides that no rate shall be approved or remain in
effect that is excessive, inadequate, or unfairly
discriminatory.
8. Defines "reproductive health services facility" to
include a hospital, clinic, physician's office, or
other facility that provides or seeks to provide
reproductive health services and includes the building
or structure in which the facility is located.
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This bill
1. Would prohibit insurers from canceling or refusing to
renew a property insurance policy of a reproductive
health services facility, as defined, solely on the
basis that one or more claims has been made as a result
of a hate crime committed against the facility during
the preceding five years.
2. Would prohibit an insurer from imposing an excessive or
unfairly discriminatory premium because the facility
has been the victim of a hate crime during the
preceding five years.
3. Would add a claim due to an anti-reproductive rights
crime, as defined, to the claims that may not serve as
the basis for a cancellation or nonrenewal.
4. Would require an insurer to report a cancellation or
nonrenewal to the Insurance Commissioner if the insured
has submitted a claim that is the result of an
anti-reproductive rights crime.
COMMENTS
1. Purpose of the bill . According to the author, the
bill seeks to expand on AB 1193 (Steinberg), Chapter
253, Statutes of 2001, which prohibits insurers from
canceling or refusing to renew a property insurance
policy of a religious or educational organization or
other nonprofit organization solely on the basis that
one or more claims has been made as a result of a hate
crime committed against the organization during the
preceding five years. The author notes that the bill
extends the law to cover reproductive health services
facilities. In addition, the author notes that the bill
provides that an insurer cannot unreasonably increase
the insurance premiums of any entity covered by AB 1193
or a reproductive health services facility.
2. Support . The sponsor, Planned Parenthood Affiliates
of California (PPAC), notes that a recent report showed
that California reproductive health clinics were
torched or bombed more than those in any other state.
According to PPAC, the report indicated that out of 224
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incidents nationwide, 30 occurred in California. In
addition, PPAC notes that most clinics reported that
they had been subject to threats, vandalism, assaults,
blockades and other crimes. Thirty percent of the
clinics reported that personnel were stalked, harassed,
threatened and otherwise targeted at their homes or in
other places away from clinics and medical offices.
According to PPAC, the high frequency of such incidents
has made it increasingly difficult for facilities to
get and keep insurance at reasonable rates.
California National Organization for Women (NOW) notes
that in March of 2003, one of the largest reproductive
health clinics in Santa Rosa was forced to close
because of skyrocketing malpractice insurance costs.
3. Opposition . None reported to committee.
POSITIONS
Support
American College of Obstetricians and Gynecologists
Anti-Defamation League
California Department of Insurance
California Medical Association
California National Organization for Women
Commission on the Status of Women
Planned Parenthood Affiliates of California (sponsor)
Oppose
None reported to committee.
Consultant:Michael A. Paiva, 445-0825