BILL NUMBER: S7924

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the insurance law, in relation to prohibiting insurers
from canceling, refusing to issue or renew, or charging higher premiums
for homeowners' insurance based on the breed of dog owned

 
PURPOSE OR GENERAL IDEA OF BILL:

The objective of this legislation is to prevent insurance companies from
discriminating against homeowners based on the breed of dog that they
own.

 
SUMMARY OF SPECIFIC PROVISIONS:

This act would clarify the law in such a manner as to prohibit insurance
companies from refusing to issue or renew an insurance policy, from
canceling a policy and from charging higher premiums based on ownership
of a particular breed of dog. However, when there is a 'dangerous dog'
              

finding under the agriculture and markets law, the refusal to issue or
renew a policy, or imposition of higher premiums would still be permit-
ted as long as such a determination is based upon 'sound underwriting
and actuarial principles reasonably related to actual or anticipated
loss.' These provisions shall not prohibit an insurer from increasing
premium or rate based upon prior paid liability claims if that dog or
dogs still reside in the insured's home or household.

 
JUSTIFICATION:

If a dog had ever attacked and caused injury to a person then there may
be a legitimate basis for higher homeowner insurance premiums.  However,
the current insurance law suggests that the mere ownership of a partic-
ular breed of dog is a legitimate basis for higher homeowner insurance
premiums. This erroneous practice has placed pet owners in an undeserved
bind. While pet owners deserve adequate and affordable homeowner insur-
ance, they are unable to obtain it without removing their friendly
animal from the family unit.

For years, insurance companies that offer homeowners insurance have
avoided loss because of the burglary prevention provided by homeowners'
dogs. It is unacceptable that now insurance companies would want the
ability to deny coverage based on the exact same breed of dog that may
have protected the homeowners and the insurance company from loss.

This bill would uphold the sanctity of the law by ending the discrimi-
nation of homeowners based on the breed of dog that they own.  As an
equal and fair society, it is key that we amend the insurance law to
protect the interests of both homeowners and their kind-hearted compan-
ion animals.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A4225 Passed Assembly
2016: Advanced to third reading cal.759
2015: Referred to insurance
2013-14 A3952 Died in Senate, returned to assembly, ordered to third
reading, Ca1.193
2012 A.3507 a Passed Assembly.
2011 A.3507 Reported from Insurance referred to Codes.
2009-10 A.2566 Referred to Insurance.
2007-08 A.1896-8 Reported from Insurance referred to Codes.
2006 A1824 Reported and referred to Codes.
2005-06 A1824 Reported and referred to Rules.
2003-04 Reported from Insurance and Referred to Codes

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
On the ninetieth day after it shall have become a law and shall apply to
all policies issued, renewed, modified, altered or amended on or after
such effective date.