Abuse Victim Warns Of Insurance Double Jeopardy Initially Denied Claim For Arson; Argues For Nondiscrimination Law

An emotion-choked Kittis Bolduc, whose home was burned to the ground by the man she was divorcing, urged Washington lawmakers Friday to protect domestic violence victims from a second round of injury - from their insurance companies.

Bolduc’s insurance company, Safeco, originally denied her claim, saying the fire was intentionally set and that her name was on the policy, too.

Courts sided with Safeco, but the company decided to settle with her and to change its internal policy to take domestic violence into account.

But Bolduc and state Insurance Commissioner Deborah Senn told lawmakers that a state nondiscrimination law is needed for all forms of insurance. Since 1994, 23 states have adopted such regulations.

President Clinton signed federal legislation last year barring insurers from denying health insurance based on a history of domestic abuse. Sens. Patty Murray, D-Wash., and Paul Wellstone, D-Minn., are pushing a new proposal to expand the law to other forms of insurance.

Senn said in an interview that some carriers in Washington state are responding to jawboning from her office but that she needs the force of a new state law to make sure the industry treats abuse victims properly.

D. Kenton Brine, president of the Washington Insurance Association, said the industry would back legislation that would ban discrimination based solely on the person’s status as a victim of domestic violence.

“What we don’t want is a requirement of ‘Write the check now and ask questions later,”’ he said in an interview. “Fraud remains a huge problem.”

He said many companies are voluntarily taking the attitude that they will pay a claim for “innocent co-insured” people who are victims of domestic violence, assuming there is no fraud.

Senn has proposed a broader bill that would ban denial of coverage, termination or jacking up of rates on the basis of abuse. The company would have to justify its decisions. The legislation would apply to life, disability, property-casualty, and health care insurance.

Rep. Paul Zellinsky, R-Bremerton, who presided over Friday’s hearing of the House Financial Institutions and Insurance Committee, said the panel is at work on a draft bill for the upcoming legislative session.

“It is unfortunate that it takes such a serious incident as occurred in Seattle for this to get the attention it deserves,” said Rep. Cathy Wolfe, D-Olympia, who has been pushing legislation for several years.

She referred to Bolduc’s case, which has received attention in the media and in the halls of Congress.

Bolduc, 38, recalled for the committee the trauma of having her estranged husband torch their Kent house in January.

“That night, Joe decided to do one last act of domestic violence. He leveled our home. Everything was wiped out,” she said.

The fire left her and her two children, Madeleine, 6, and Kelly, 4, homeless. Joseph Bolduc, 47, was found guilty of first-degree arson and sentenced to 41 months in prison. Prosecutors said he told police he would gladly go to jail as long as his wife didn’t get the house.

Within a few weeks, the insurance company denied her claim. Bolduc said she felt victimized all over again.

“We’ve seen case after case” where victims get caught up with a similar legal snag, Senn told lawmakers.

Eventually Safeco decided to settle with her, even though King County Superior Court said the company was within its rights to deny coverage for the fire. Bolduc plans to rebuild on the same site.