Genetic testing for life and disability insurance

The law strengthens privacy and anti-discrimination protections for people’s genetic data in life and disability insurance. It also prohibits use or disclosure of a person’s full genome.

What the law does ​

• Prohibits life and disability insurers from requiring genetic tests, seeking genetic information, asking about genetic testing, or using genetic-test results for insurance purposes.
• Bars insurers from canceling, limiting, or denying coverage, changing premiums or terms, or making adverse underwriting decisions based on genetic-test results.
• Allows limited use of genetic information in a medical record only to rule out an adverse finding, with written informed consent or when the individual provides the results, and never for direct-to-consumer test results.
• Prohibits insurers and insurance-support organizations from seeking genetic information or a full genome in insurance transactions or investigative consumer reports, subject to the same narrow medical-record exception.
• Allows insurers to consider an existing disease, diagnosis, or treatment, including a diagnosis reached through genetic testing, while restricting use of the underlying genetic information.
• Imposes civil, administrative, and potential criminal penalties for prohibited use or disclosure of genetic information.

Who it affects ​

• Applicants, policyholders, and beneficiaries seeking life or disability insurance in California.
• Life and disability insurers, fraternal benefit societies, insurance agents, reinsurers, surplus-line insurers, and insurance-support organizations.
• Third-party service providers that prepare insurance investigative consumer reports.

Context ​

The Insurance Commissioner may issue rules and assess specified administrative penalties against life and disability insurers for violations.