# 201

September 5, 1996



The Honorable Sam Farr
Member, United States House of 
  Representatives
701 Ocean Street
Santa Cruz, California  95060

Dear Congressman Farr:

     This letter is in response to your inquiry on behalf of your
constituent, Mr. XXXXXXXXXX, regarding automobile insurance and
the Americans with Disabilities Act of 1990 (ADA).  Mr. XXXXX
wishes to know whether auto insurance companies may charge him
more for driving a golf cart than they would charge for a
standard automobile if he drives the golf cart because of his
disability.  We apologize for the delay in responding.

     The ADA prohibits unjustified discrimination in all types of
insurance, including automobile insurance, provided by public
accommodations.  However, because of the nature of the insurance
business, an insurer or other public accommodation may
underwrite, classify, or administer risks that are based on, or
not inconsistent with, State law, provided that such practices
are not used to evade the purposes of the ADA.

     With respect to the purchase of insurance, the ADA allows
insurance companies to charge more for insurance, or to refuse to
insure someone with a disability, only if the higher charges or
refusal to provide coverage is based on sound actuarial data and
principles, and not on speculation.  Thus, while the ADA does
provide some protection for individuals with disabilities in
their dealings with insurance companies, it does not prohibit the
use of legitimate actuarial considerations. 

     If an insurance company is simply charging all policy
holders more for golf cart coverage without regard to disability,
the question of whether this charge is legal would be determined 
under State insurance law and would not be an ADA issue.  It
would be an ADA issue, however, if the company charges more for
coverage for a person with a disability who drives a golf cart
than it does for others.  In that case, the difference would have
to be based on legitimate actuarial considerations.

     I hope this information is useful to you in responding to
your constituent.

                            Sincerely,




                         Deval L. Patrick
                    Assistant Attorney General
                      Civil Rights Division