DORIS A. CARRUTHERS, Complainant

VS.

PRUDENTIAL INSURANCE COMPANY OF AMERICA, Respondent.

FINDINGS OF FACT

1. The Complainant, Doris A. Carruthers, timely filed verified complaint CP# 07-85-13292 with the Iowa Civil Rights Commission on July 16, 1985, alleging a violation of Iowa Code section 601A.7, discrimination in public accommodations on the basis of sex, by Respondent Prudential Insurance Company of America.

2. The complaint was investigated, probable cause found, conciliation attempted but failed. Notice of Hearing was issued on January 5, 1988.

3. In 1984, Doris Carruthers, a female, was 35 years of age, divorced, and had two children, ages 16 and 4. At that time she was a student studying to be a licensed practical nurse (LPN). She had seen media ads to buy a "piece of the rock" Prudential's advertisements. There was a Prudential agent, Dan Jackson, who was a neighbor of friends, the Skinner's. During the summer of 1984, Carruthers talked with Jackson about taking out some kind of insurance policy. On July 31, 1984, Jackson prepared a computer print-out on three different types of policies for a female age 35. (Complainant's Exhibit 3)

4. During the time at issue, Carruthers was receiving ADC payments, food stamps and Title 19 medical care plus $60.00 a month mileage to attend school.

5. In January 1985, Carruthers again talked with Jackson. An application was filled out by Jackson and signed by Jackson and Carruthers on January 14, 1985. The policy applied for was "LIFE 90"; initial amount was $5,000.00; supplementary benefits for insured were "DTR age 65" in the amount of $15,000.00; and

"CLT" for the children in the amount of $10,000.00 each. The monthly premium submitted with the application was $18. 10. (Complainant's Exhibit 4)

6. In a letter dated February 6, 1985, Prudential sent Carruthers a letter denying her application for insurance because her "main source of income [was] derived from public assistance." Her premium of $18. 10 was returned.

7. At the time of wanting insurance coverage, Carruthers was not receiving child support nor did the children's father carry any insurance to protect the children. The insurance would have allowed the children at age 25 to continue coverage without a health check. It also would have given Carruthers security that the children would be protected in the case of her death.

8. Carruthers had figured out how she could handle the premiums, but nevertheless anticipated the denial of her application. She was very upset by the denial and felt like a second-rate citizen. She did not pursue obtaining insurance with any other company. She believed the denial by Prudential was not legal.

9. At the time of the hearing, Carruthers was age 39. (Transcript 75).

10. Dan Jackson was a sales agent for Prudential working out of Prudential's Ottumwa office. That office employed 16 agents, 2 sales managers and 2 clerks. Prudential advertised services in the Yellow Pages. (Complainant's Exhibit 1). It also advertised its services through the newspaper and radio, locally and nationally. Prudential's office in Ottumwa had a parking area for customers. (Complainant's Exhibit 2).

11. When Jackson filled out Carruthers application for insurance, he did not know she was on public assistance. He did know that Prudential did not issue contracts to persons on public assistance. Prudential's underwriting department made decisions as to acceptance or rejection of applications for insurance.

12. A portion of the proposed policy for Carruthers did have a guaranteed cash value. In 3 years she would have paid in $669.00 and the cash value would have been $38.55. (Joint Exhibit 1, p. 51-52).

13. Prudential sells insurance to those members of the general public who qualify health-wise, need-wise, and have the ability to pay. Jackson has sold insurance to persons earning only $200 or $300 a month but only when not receiving public assistance.

14. As of January 1985 (the date of application for insurance by Complainant to Respondent), there were 31,844 ADC cases on file with the Iowa Department of Human Services. Of that number, 2,374 were males and 29,424 were females. (Complainant's exhibit 5). Similar figures for January 1988 were 2,887 males and 27,929 females on ADC out of a total of 29,913 ADC cases. (Complainant's exhibit 6). These comparative figures have remained consistent. (Transcript 22).

15. ADC is a program that pays money benefit and income maintenance benefits to people who are poor because a parent is gone from the home or incapacitated or in certain cases when both parents are unemployed. ADC families are allowed to possess $1000.00 above exempt resources. Any cash value of life insurance would be included in that $1000.00. Persons on ADC are not prohibited from using their benefits for life insurance. (Transcript 26-28).

16. The 1987-1988 Statistical Profile of Iowa as produced by the Iowa Department of Economic Development showed that of a total population of 2,913,808, there were 1,497,682 females and 1,415,705 males. The source of this Profile was the 1980 Census of Population and Housing, U.S. Department of Commerce, Bureau of the Census. (Complainant's Exhibit 9).

17. Based on the Statistical Profile mentioned in #16 and the data set forth under #14, a significant statistical difference was found between the proportion of males over 17 and the proportion of females over 17 who would be denied insurance because of the policy which excludes ADC recipients from buying insurance. (See Affidavit of Camilla Mitchell).