N.Y. State Bans Insurance on Claims Resulting from Discrimination

The New York State Insurance Department ruled today that no insurance company licensed in this state will be allowed to insure anyone against liability arising from legal suits involving discrimination based on the grounds of religion, race, color or creed. The ruling holds that the state’s Law Against Discrimination is “public policy” which cannot be bypassed by any type of insurance.

The effect of the ruling is that any person or firm found guilty of violating the Law Against Discrimination–in housing public accommodation, employment or any other field covered by that measure–cannot be insured against the results of civil suits or claims. The ruling also warned that, if insurance companies not licensed in this State should undertake such insurance, the State Legislature may pass legislation making such policies ineffective in this State.

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