Breed of Dog Restrictions for Homeowners' Insurance

You asked if other states prohibit insurance companies from considering the breed of dog kept on the property in their underwriting or rating guidelines for homeowners’ insurance. You also asked what insurance companies are currently doing with respect to breed of dog restrictions.

No state currently legislates underwriting or rating requirements for homeowners insurance with respect to the breed of dog owned or harbored on property. However, some states introduced legislation this session that deals with this issue.

Insurance companies vary in whether or not they consider the breed of dog owned or kept when underwriting homeowners’ insurance. Some will not write policies if certain breeds are owned. Some companies consider the history of the particular dog owned. Other companies do not consider dogs owned at all in the underwriting process.

Several states are considering breed of dog legislation for homeowners’ insurance this session, including: New Hampshire, Rhode Island, New York, Virginia, and Tennessee.

The New Hampshire, Rhode Island, and New York bills have died in committee. The Virginia bill passed the Senate on March 4, 2004. The Tennessee bill is in the Commerce, Labor, and Agriculture committee, which deferred action on it as of March 2, 2004. A description of each bill follows below.

A homeowner's policy cannot be non-renewed or cancelled based solely on the breed of dog owned.

Insurers cannot refuse to renew or issue homeowners’ insurance based upon the breed of dog kept. Insurers may refuse to renew or issue the insurance if the dog is declared a vicious dog in accordance with Rhode Island law or if the insured or applicant knows of the dog's vicious propensity or if the dog has attacked or bitten a person.

Insurers cannot cancel or refuse to renew or issue homeowners’ insurance based in whole or in part on a dog’s breed. Rates for the policy must be based upon sound underwriting and actuarial principles. If the dog is a dangerous dog under New York law, the insurer may refuse to issue or renew or cancel insurance. The insurer may increase the premium or rate for the policy based on sound underwriting and actuarial principles related to actual or anticipated loss experience.

An insurer may, with the insured's written consent, exclude from coverage an injury caused by a dangerous or vicious animal owned or in the care, custody, or control of the insured if the animal has bitten, attacked, or inflicted injury on a person or companion animal. Such risk must be specifically identified in the exclusion. Policy forms to be used by the insurer for the exclusions must be filed with the insurance

insured has agreed to the specified risk being excluded under the policy. The insured must sign a consent form before a notary public or disinterested witness acknowledging the exclusion.

Insurers may not deny homeowners’ or renters’ insurance based upon the breed of dog owned, kenneled, or otherwise domiciled on the property. An insurer may deny the insurance if the specific dog has been proven to have a history of violence. At least one police report or report of local animal control authorities stating that the specific dog has violently threatened, attacked, or injured any person or any other animal may be considered proof of a history of violence. This bill does not prohibit an insurer from denying homeowners’ or renters’ insurance based upon other types of animals owned, kenneled, or otherwise domiciled on the property.

Administratively, the Connecticut Insurance Department does not permit a blanket dog exclusion in homeowners’ insurance policies. The department believes that such a blanket exclusion would be discriminatory. However, the department does approve underwriting guidelines that consider the breed of dog owned by the prospective insured.

The Insurance Association of Connecticut (IAC) surveyed its clients to learn specific company practices relative to breed of dog owned or kept. So far, the results show that there is no uniform practice. Among the various practices are:

• no underwriting or rating consideration at all for dogs owned;

• a specific dog analysis (what risk does this particular dog present);

• a breed restriction list (if you own a breed of dog on the “list” then a policy will not be issued); and

• for those companies that consider dogs, the consideration is an underwriting decision, not a rating decision.

Discussions with the National Conference of State Legislators (NCSL) and the Connecticut Insurance Department highlighted the difference between rating and underwriting.

Underwriting is the first step in the process. An insurer will assess the risk and determine whether they want to write the risk. If a company employs a breed restriction in their underwriting process, a homeowners’ policy will not be issued if the prospective insured owns a dog that is on the breed restriction list. The policy will be a "no quote. "

After underwriting is done, if an insurer decides that it is willing to write the risk, then rating is done to calculate the rate or premium to be charged for the policy.


March 9, 2004		2004-R-0259
BREED OF DOG RESTRICTIONS FOR HOMEOWNERS' INSURANCE

By: Janet Brierton, Associate Legislative Attorney