PRINTER'S NO. 1383
No. 1165 Session of 2003
INTRODUCED BY BEBKO-JONES, BELARDI, BISHOP, BROWNE, DeWEESE,
HARHAI, JAMES, LEDERER, LAUGHLIN, THOMAS, TIGUE, WASHINGTON
AND YOUNGBLOOD, APRIL 15, 2003
REFERRED TO COMMITTEE ON INSURANCE, APRIL 15, 2003
AN ACT
1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled
2 "An act relating to unfair insurance practices; prohibiting
3 unfair methods of competition and unfair or deceptive acts
4 and practices; and prescribing remedies and penalties,"
5 further providing for definitions, for unfair competition and
6 practices and for administration.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 3 of the act of July 22, 1974 (P.L.589,
10 No.205), known as the Unfair Insurance Practices Act, is amended
11 by adding definitions to read:
12 Section 3. Definitions.--As used in this act:
13 * * *
14 "Genetic characteristic" means any inherited gene or
15 chromosome, or alteration of an inherited gene or chromosome,
16 which is scientifically or medically believed to:
17 (1) predispose an individual to a disease, disorder or
18 syndrome; or
19 (2) be associated with a statistically significant increased
1 risk of development of a disease, disorder or syndrome.
2 "Genetic information" means information which may be derived
3 from an individual or family member about genes, gene products
4 or inherited characteristics.
5 "Genetic test" means a test for determining the presence or
6 absence of an inherited genetic characteristic in an individual.
7 The term includes a test, to identify a predisposing genetic
8 characteristic, of a:
9 (1) nucleic acid, such as deoxyribonucleic (DNA),
10 ribonucleic acid (RNA) and mitochondrial DNA;
11 (2) chromosome; or
12 (3) protein.
13 * * *
14 Section 2. Section 5(a) of the act is amended by adding a
15 paragraph to read:
16 Section 5. Unfair Methods of Competition and Unfair or
17 Deceptive Acts or Practices Defined.--(a) "Unfair methods of
18 competition" and "unfair or deceptive acts or practices" in the
19 business of insurance means:
20 * * *
21 (7.1) Doing any of the following:
22 (i) Discriminating against an individual, on the basis of
23 genetic information, of refusal to submit to a genetic test or
24 of refusal to make available results of a genetic test, in the:
25 (A) issuance, withholding, extension or renewal of health
26 care;
27 (B) fixing of the rates, terms or conditions of health care
28 insurance; or
29 (C) issuance or acceptance of an application for health care
30 insurance.
20030H1165B1383 - 2 -
1 (ii) Unfairly discriminating against an individual in the
2 application of the results of a genetic test or genetic
3 information in the issuance, withholding, extension or renewal
4 of:
5 (A) a policy of life insurance, including credit life
6 insurance;
7 (B) an annuity;
8 (C) a disability income insurance contract; or
9 (D) credit accident insurance coverage.
10 (iii) Using the results of a genetic test in compliance with
11 this paragraph without proper notice in the issuance,
12 withholding, extension or renewal of a policy of life insurance,
13 including credit life insurance; an annuity; a disability income
14 insurance contract; or credit accident insurance coverage.
15 Proper notice under this subparagraph requires the insurer to do
16 all of the following:
17 (A) Notify the individual who is the subject of the genetic
18 test that the test will be required.
19 (B) Obtain the individual's written informed consent for the
20 test prior to the administration of the test, on a form approved
21 by the commissioner.
22 (C) Obtain the individual's written statement as to election
23 to be informed of the results of the test.
24 (D) Provide to the physician or other health care
25 professional designated by the individual a copy of the results
26 of the test; if requested by the physician or health care
27 professional, an interpretation of the test results by a
28 qualified professional; and a copy of the statement under clause
29 (C).
30 * * *
20030H1165B1383 - 3 -
1 Section 3. Section 7 of the act is amended to read:
2 Section 7. Power of Commissioner.--The commissioner may
3 examine and investigate the affairs of every person engaged in
4 the business of insurance in this State in order to determine
5 whether such person has been or is engaged in any unfair method
6 of competition or in any unfair or deceptive act or practice
7 prohibited by this act. If the commissioner has reason to
8 believe that unfair discrimination under section 5(a)(7.1)(ii)
9 has occurred, including that application of the results of a
10 genetic test is not reasonably related to anticipated claim
11 experience, the commissioner shall conduct an investigation
12 under this section.
13 Section 4. This act shall take effect in 60 days.
A7L40JS/20030H1165B1383 - 4 -