01/28/1997 01:30 PM Senate L&C

        SB  14 INS:DOMESTIC VIOL. VICTIMS & DISCLOSURES                       
   CHAIRMAN LEMAN  announced  SB 14  to be up for consideration.              
                                                                               
  SENATOR DAVE DONLEY,  sponsor  , informed the committee   SB 14 is           
 identical to legislation that passed the Senate last year and that            
 eight other states have passed similar legislation.  It prevents              
 insurance companies from unfairly discriminating against victims of           
 domestic violence by using the fact that a person was a victim of             
 domestic violence as the sole criterion to determine whether an               
 insurance policy is made available, cancelled, or gets a rate                 
 increase.  While it might be appropriate for an insurance company             
 to review the potential risks of a client, such as a pre-existing             
 condition, the fact that a person was a domestic violence victim,             
 and nothing more, should not be considered.  SB 14 explicitly                 
 prohibits insurance companies from doing so.                                  
                                                                               
 Number 59                                                                     
                                                                               
  SENATOR DONLEY  explained the main question people have is whether           
 the bill should include all lines of insurance or simply health and           
 life insurance.  He believes all lines of insurance should be                 
 included.  Various womens' organizations have presented examples of           
 discrimination in property lines in the "lower 48."  He believes              
 the fundamental question is whether it is ever justifiable, even in           
 a property line of insurance, to discriminate against a person                
 simply because one has been a victim of domestic violence.  If a              
 person has an injury as the result of a domestic violence                     
 occurence, and the person is denied health insurance at a later               
 time because of the physical injury or ongoing condition, that                
 decision is based on objective fact and is fair underwriting                  
 criterion.  SB 14 would prohibit an insurance company from denying            
 a person only because he/she was once victimized.  That same                  
 concept should extend to property lines.  In correspondence to the            
 committee from Mr. George, Independent Insurance Agents, an example           
 was given in which a house is jointly owned by a couple engaged in            
 domestic violence disputes.  One partner threatens to burn the                
 house.  Could the insurance company deny insurance coverage because           
 such an act would be intentional?  Senator Donley believed coverage           
 could be denied because insurance companies are not required to               
 cover intentional acts of the insured and that is a separate                  
 objective reason for denying the claim.                                       
                                                                               
 Number 121                                                                    
                                                                               
  SENATOR LEMAN  noted Senator Donley's clarification allays his               
 concern about collecting for property damage caused by an estranged           
 spouse.   He does not believe SB 14 should apply to such                      
 situations.  He planned to check with the Division of Legal                   
 Services to determine whether that issue needs to be further                  
 clarified in the bill.                                                        
                                                                               
  SENATOR DONLEY  commented the word "only" on page 1, line 9, is a            
 key element in the bill and clarified that insurance companies can            
 deny coverage for other reasons.                                              
                                                                               
 There being no further testimony on SB 14,  SENATOR MACKIE  moved SB
 and its accompanying zero fiscal note out of committee with                
 individual recommendations.  There were no objections and it was so           
 ordered.