Disabled Man Accuses Insurer of Discrimination
A disabled Tustin man filed an anti-discrimination lawsuit in federal court Monday, claiming his insurance company terminated his automobile coverage when it learned he uses hand controls in his modified vehicle.
Ronald Fredette, 41, said his physical disability was obvious when he took out a policy--he paid for auto insurance while sitting in a wheelchair in front of his Atlanta Casualty broker in Orange County.
But, Fredette says in his suit, filed by the American Civil Liberties Union of Southern California, his policy was canceled two months later when the company declared him “ineligible for coverage.”
The suit maintains that Atlanta Casualty violated anti-discrimination protection in the Americans with Disabilities Act, the Unruh Civil Rights Act and the Unfair Business Practices Act.
“This is the first disability lawsuit of its kind ever filed against an auto insurance company,” said Daniel Tokaji,an ACLU staff attorney.
The Altanta-based company declined comment Monday on the lawsuit and its claims. The company was incorporated in Illinois but is headquartered in Atlanta.
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A representative for the insurance industry took exception to statements that insurance carriers unfairly target the disabled.
“Writing policies for people who use modified vehicles is not uncommon,” said Elizabeth Story, a spokeswoman for the American Insurance Assn. in Sacramento. “It’s not like underwriting other risks, such as people who have had 10 tickets or more. Even they can get coverage, though it may be based on a higher fee.”
Without knowing all the facts in Fredette’s case, Story did not wish to comment on the lawsuit.
Fredette is seeking injunctive relief to force the company to change its underwriting policies, which his attorneys maintain unfairly discriminates against disabled people who require modified vehicles to drive.
Disabled for years, Fredette has been employed as a software designer and also has sold medical equipment. He suffered a spinal cord injury when he was 21 and as a result cannot use his legs.
He said he has been driving for 18 years with the help of hand controls installed in his vehicles.
“I never had a problem with any insurance company until now,” Fredette said. “In fact, I must know more than 100 people who also are disabled who have gotten hand controls on their vehicles and no one has ever had a problem. It’s never been an issue until now, and that’s why I was just so flabbergasted when I got that [termination] letter.”
Fredette said he paid for the policy in August 1996.
“The agent knew of my disability because she came out to take pictures of my vehicle and she saw the hand controls,” Fredette said.
He said that his application was accepted for a yearly premium of $1,870 and that he made a $250 payment, followed by another payment of $177.25 about Oct. 1, 1996.
Then on Oct. 17, 1996, according to Fredette, Atlanta Casualty wrote to him that the policy was canceled effective Nov. 6.
Tokaji said the ACLU had taken Fredette’s case because the termination decision was blatantly discriminatory.
“The notice expressly said he was canceled due to hand controls on his vehicle,” Tokaji said. “Apparently, Atlanta Casualty has a policy that they do not insure modified vehicles, including those in need by disabled people.”
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Stanley Fleishman, a Los Angeles attorney who is also representing Fredette, said he hopes the lawsuit sends a blunt message to auto insurance companies that discriminate.
“Insurance companies have been ignoring the law,” Fleishman said. “We expect to get their attention with a substantial damage award, and to prevent this from happening again to anyone.”
The lawsuit, filed in federal court in Los Angeles, specifies no monetary sum.
Fredette eventually bought another insurance policy, but it cost more than his policy with Atlanta Casualty, the lawsuit stated.
