Sponsor Statement for SB 14
Protecting Domestic Violence Victims From Insurance Discrimination

SB 14 protects victims of domestic violence from insurance discrimination. SB 14 also requires, upon written request from an applicant, that an insurer must disclose the reason insurance coverage was denied.

SB 14 was modeled after the 19th Alaska Legislature's SB 197 which passed the Senate 18-0 and passed the House 36-3 in 1996, but died in the Senate unfinished business file. SB 197 was drafted with the advice and support of the Division of Insurance.

The statutory provisions contained in SB 14 are necessary to protect victims of domestic violence. A survey by the United States House Judiciary Committee indicated that eight out of sixteen of the largest insurance companies use domestic violence as a factor for rating insurance.

Sixteen states have passed legislation similar to SB 14 including Arizona, California, Connecticut, Delaware, Florida, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Pennsylvania and Tennessee. Legislation similar to SB 14 passed Congress in 1996 and related legislation is pending in another nine states. Alaska’s pro-active measures follow the nation-wide trend by adopting legislation that protects innocent victims of domestic violence from insurance discrimination.

Currently, there is no protection in Alaska for victims of domestic violence against insurance premium increases, cancellation, or denial. SB 14 protects innocent victims of domestic violence from such action by insurance companies only because they have been victims of domestic violence. Insurers discriminating against domestic violence victims has been a serious problem in the lower 48 and SB 14 will prevent similar occurrences in Alaska.

If you have any question regarding SB 14, please contact myself or Laura Hosey of my staff at 465-3892.

SB 14 is supported by Alaska’s State Division of Insurance, Network on Domestic Violence and Sexual Assault, Council on Domestic Violence and Sexual Assault, Alaska Women’s Resource Center, STAR Rape Crisis Center, WICCA, Alaska Women’s Lobby, Abused Women’s Aid in Crisis, Sitkans Against Family Violence, Alaska Council on Prevention of Alcohol and Drug Abuse, Inc, and Alaska Women’s Political Caucus.

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