The ContractProhibition of Discriminatory Practices by Certain Admitted Insurers

Section § 679.70

Explanation

This law applies to certain insurance policies in California, excluding car and workers' compensation insurance. It covers policies issued or renewed after a specific date that insure against three main risks.

First, it covers loss or damage to residential real estate. Second, it covers loss or damage to personal property owned by people living in such residential properties. Third, it includes liability protection for individuals who are responsible for harming others or damaging property.

This chapter shall apply to policies of insurance, other than automobile insurance and workers’ compensation insurance, on risks located or resident in this state which are issued and take effect or which are renewed after the effective date of this chapter and which insure any of the following contingencies:
(a)CA Insurance Code § 679.70(a) Loss of or damage to real property which is used predominantly for residential purposes.
(b)CA Insurance Code § 679.70(b) Loss of or damage to personal property in which natural persons resident in specifically described real property of the kind described in subdivision (a) have an insurable interest.
(c)CA Insurance Code § 679.70(c) Legal liability of a natural person or persons for loss of, damage to, or injury to, persons or property.
insurance policies residential property personal property loss ...

Section § 679.71

Explanation

This law ensures that insurance companies in California cannot reject, cancel, or offer less favorable terms for insurance policies based solely on personal characteristics such as race, gender, or age. They also cannot charge a higher premium based on these characteristics unless all individuals are treated the same way.

No admitted insurer that is licensed to issue any policy of insurance covered by this chapter shall fail or refuse to accept an application for, or to issue a policy to an applicant for, that insurance (unless the insurance is to be issued to the applicant by another insurer under the same management and control), or cancel that insurance, under conditions less favorable to the insured than in other comparable cases, except for reasons applicable alike to persons of every characteristic listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code; nor shall any of those characteristics, of itself, constitute a condition or risk for which a higher rate, premium, or charge may be required of the insured for that insurance.
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Section § 679.72

Explanation

This law section states that when applying for certain types of insurance in California, the application or any related investigation report provided to insurance agents or employees must not include or require information about characteristics like those outlined in specific sections of the Civil Code. These characteristics can include things like race, religion, gender, etc., ensuring that the applicant's insurability is not assessed based on these personal traits.

No application for insurance specified in this chapter or insurance investigation report furnished by an insurer to its agents or employees for use in determining the insurability of an applicant shall carry any identification, or any requirement therefor, of any characteristic listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code with respect to the applicant.
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Section § 679.73

Explanation

This law allows insurance applications to ask about an applicant's birthplace, but only if it's for identification purposes, not for discrimination.

Nothing in this chapter shall prohibit use in an application for insurance specified in this chapter of a question asking for the birthplace of an applicant if such question is used only to identify the applicant and not to discriminate against the applicant.
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Section § 679.74

Explanation

This law prevents insurance companies from denying or canceling home insurance based on the income source or receipt of government housing assistance of people living on the property if they are not the property owner.

Applications or reports for these insurance policies must not show any details about income sources or government aid for residents. However, if the building is mixed-use for residential and commercial purposes, insurance companies can consider the income of commercial tenants.

This law allows insurers to make decisions based on other underwriting factors not related to the restricted characteristics described above.

(a)CA Insurance Code § 679.74(a) An admitted insurer that is licensed to issue a policy of insurance upon real property of the type described in paragraph (1) of subdivision (a) of Section 675 or paragraph (1) of subdivision (b) of Section 675.5, when that real property is used for residential purposes, or property of the type described in subdivision (a) of Section 10087, shall not fail or refuse to accept an application for, or to issue a policy to an applicant for, that insurance unless the insurance is to be issued to the applicant by another insurer under the same management and control, or cancel that insurance, based upon the following characteristics:
(1)CA Insurance Code § 679.74(a)(1) The level or source of income of an individual or group of individuals residing or intending to reside upon the property to be insured, if the individual or group of individuals is not the owner of the real property.
(2)CA Insurance Code § 679.74(a)(2) The receipt of assistance, intended for housing, from the federal or state government, or from a local public entity, as defined in Section 50079 of the Health and Safety Code, including, but not limited to, federal vouchers issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an individual or group of individuals residing or intending to reside upon the property insured or to be insured.
(b)CA Insurance Code § 679.74(b) An application for a policy of insurance upon real property of the type described in subdivision (a), or an insurance investigation report furnished by an insurer to its agents or employees for use in determining the insurability of an applicant under such a policy, shall not carry any identification, or any requirement for identification, of the following characteristics:
(1)CA Insurance Code § 679.74(b)(1) The level or source of income of an individual or group of individuals residing or intending to reside upon the property to be insured, if the individual or group of individuals is not the owner of the real property.
(2)CA Insurance Code § 679.74(b)(2) The receipt of assistance, intended for housing, from the federal or state government, or from a local public entity, as defined in Section 50079 of the Health and Safety Code, including, but not limited to, federal vouchers issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), by an individual or group of individuals residing or intending to reside upon the property insured or to be insured.
(c)CA Insurance Code § 679.74(c) In the case of real property of the type described in paragraph (1) of subdivision (a) of Section 675, paragraph (1) of subdivision (b) of Section 675.5, or subdivision (a) of Section 10087 that is used for both residential and commercial purposes, the insurer, or its agent or employee, may consider the source of income of a nonresidential tenant of the property in determining the insurability of an applicant.
(d)CA Insurance Code § 679.74(d) Nothing in this section prohibits an insurer from failing or refusing to accept an application for, issuing, or canceling or failing to renew, a policy of insurance covered by this chapter as a result of underwriting or assessment of factors other than those characteristics listed in subdivision (a), or as otherwise prohibited by law.
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Section § 679.75

Explanation

This law allows insurance companies that cover private detention facilities to check if these facilities are meeting certain legal requirements. This helps insurers reduce risk and make sure they stay financially stable by ensuring the facilities they cover follow the rules.

To reduce underwriting risk and ensure solvency, an insurer providing insurance coverage pertaining to a private detention facility, as defined in subdivision (b) of Section 9500 of the Penal Code, may consider whether the private detention facility complies with all of the requirements of Section 9506 of the Penal Code as part of the insurer’s loss control program.
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