An Act Concerning The Use Of Breed Of Dog As An Underwriting Factor For Homeowners And Tenants Insurance Policies.
Impact
The bill can significantly affect homeowners and tenants insurance policies by ensuring that the breed of a dog cannot be used as an exclusive factor in rate setting or policy issuance. This means that insurance companies will need to employ additional criteria beyond just breed when determining the insurability of a dog. Such a change may lead to higher transparency and fairness for dog owners, particularly those with breeds that have historically faced discrimination in insurance contexts, thus making it easier for individuals to secure housing without fear of losing insurance coverage due to their pet’s breed.
Summary
House Bill 05361, also known as 'An Act Concerning the Use of Breed of Dog as an Underwriting Factor for Homeowners and Tenants Insurance Policies', seeks to prevent insurance companies from using the breed of dogs as a basis for determining rates or granting insurance policies. Effective October 1, 2015, the bill prohibits insurers from cancelling, refusing to renew, or issuing policies based solely on a dog’s breed. This change is positioned as a means to promote fairness in insurance underwriting and to prevent discrimination against specific dog breeds, which can often be perceived unjustly as dangerous or high-risk.
Sentiment
The sentiment around HB 05361 appears to be largely supportive among animal rights advocates and pet owners who seek to reduce stigma associated with certain dog breeds. Proponents argue that the bill supports responsible pet ownership and acknowledges that behavior, rather than breed alone, is a more appropriate determinant of a dog's suitability as a pet. However, there may be concerns from some insurance companies regarding the potential increase in risk, which they believe could result from prohibiting the use of breed in underwriting decisions.
Contention
One notable point of contention revolves around the insurance industry's ability to adequately assess risk without considering breed as a factor. Critics of the bill may argue that certain breeds have a higher propensity for aggressive behavior and thus, excluding breed from underwriting criteria could lead to increased risk, potentially raising insurance premiums for all policyholders. This places stakeholders in a dilemma between advocating for animal rights and ensuring that insurance models remain viable and financially sound.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.