American Agents Alliance
"News from the Alliance"
January 31. 2003

Bill echoes sentiments of other legislation in Assembly

A bill introduced by Senator Jackie Speier (D-Burlingame) would make canceling, nonrenewing or refusing to offer a policy because of a coverage inquiry an unfair method of competition and an unfair and deceptive act. Speier's bill also prohibits nonrenewals, etc. due to a notification of loss, if the insured did not intend to file a claim.

The legislation, SB 64, parallels another bill in the Assembly, AB 81 (Wyland, R-Escondido). That bill prohibits insurers from "reaching any adverse underwriting decision" based on coverage inquiries.

Both bills come on the heels of a Senate Insurance Committee hearing on homeowners insurance availability, held by Speier last December, at which testimony was given that coverage inquiries, even those that don't result in claims, reflect negatively on the insured. A representative from CLUE, the nation's largest claims information provider, testified that his organization includes coverage inquiries in its data.