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10/20/09
Wrong Again!
Filed under: General
Posted by: JP @ 3:17 pm

I think we all hope nobody is keeping track of how often we are wrong. Well, I was recently wrong again.

I assumed that a multi-state ban on underwriting based on domestic violence would have solved the issue. I knew that insurers are not using domestic violence information to reject individuals. I also knew that administratively it would be impossible to carve out the few states that don’t actually ban the practice, so effectively there was a nation-wide ban. I also knew insurers would support laws that would further clarify the practice they weren’t doing would be banned.

No way this is going to be an issue… it is just some crazy bloggers groping for any issue to write on — especially one that would paint the insurance industry in a bad light.

I was wrong. It has gotten some play. For example from one newspaper:

Mississippi and seven other states are without laws to block
such action, but a coastal lawmaker is working toward
changing that in the 2010 Legislature.

“Although we have no reports of it ever happening, and
I can tell you of no cases of a victim being turned away,
there’s nothing in the codes to prevent it from
happening,” said Sandy Middleton, state legislative
chairwoman for the Mississippi Coalition Against Domestic
Violence.”


Domestic violence is terrible. In the 1980’s and 1990’s, some insurers debated what the best practice would be to support domestic violence victims. Some believed that it should not be used in underwriting at all. Others believed that by not acknowledging the abuse, the insurer would be condoning it. State legislators settled this debate by the late 1990’s with most states banning the use of domestic violence in underwriting.

This is the best and truest function of state regulation — settling matters that will best help protect the vulnerable.  And protecting the vulnerable — including creating a true safety net — is one of CAHI’s founding principles.

So just to be clear, we don’t think this is a problem anywhere and are not opposed to efforts to ban in the other states.

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