SENATE BILL REPORT

SB 5914

BYSenators Moore, Niemi, Fleming, Williams, Wojahn and McMullen

Prohibiting sex discrimination in insurance.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 23, 1989

Senate Staff:Bev Tweddle (786-7403)

AS OF FEBRUARY 22, 1989

BACKGROUND:

The state Constitution was amended in 1972 to provide that "equality of rights×××shall not be denied or abridged on account of sex."  The Legislature has also adopted laws prohibiting sex discrimination.  For example, Chapter 49.60 RCW, "the law against discrimination," declares that the right to engage in insurance transactions without sex discrimination is a civil right.  However, this statute permits discrimination that is authorized by the insurance code.

Under the insurance code, insurers are generally prohibited from discriminating on the basis of sex.  However, specific power is given to insurers to discriminate on the basis of sex when "bona fide statistical differences in risk and exposure have been substantiated."  Similar provisions apply to health care service contractors and health maintenance organizations.

SUMMARY:

The insurance code is amended to prohibit discrimination on the basis of sex in all cases.  Health care service contractors, health maintenance organizations, fraternal benefit societies, the Washington Basic Health Plan, and insurance and health benefit programs provided by the state would be similarly prohibited from discriminating on the basis of sex.

Corresponding amendments are made to various insurance code provisions governing actuarial tables, and insurance benefit calculations.  In addition, the state law generally prohibiting discrimination is amended to conform to these changes.

The Insurance Commissioner is required to report to the Legislature at the beginning of the 1990 legislative session on any statutory and regulatory changes necessary to implement the act.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.