SENATE BILL REPORT

HB 1099

BYRepresentative Locke

Prohibiting unfair insurance discrimination.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

Senate Hearing Date(s):April 3, 1987

Senate Staff:Stephanie Yates (786-7416)

AS OF APRIL 2, 1987

BACKGROUND:

The insurance code prohibits insurers from unfairly discriminating against applicants for insurance and against policyholders.  While insurers may not discriminate on the basis of race, color, creed, or national origin, insurers may discriminate on the basis of age and sex if the insurer can prove that differences in age and sex results in differences in expected losses under a policy.  However, the insurance code provisions prohibiting unfair discrimination are inconsistent.

SUMMARY:

Insurance code provisions governing unfair discrimination by insurers are amended so that every section of the code prohibits the same type of unfair discrimination.  No substantive changes are made.

Fiscal Note:      none requested