New Law Prohibits the Use of Genetic Testing for Insurance

21 May New Law Prohibits the Use of Genetic Testing for Insurance

On May 4, 2017, Bill S-201 became law.

This new law makes it illegal for an insurer to require a person to undergo genetic testing, or to disclose the results of previous genetic tests, as a condition of the insurer’s providing or continuing coverage.

The law also prohibits insurers from collecting or using genetic test results in underwriting decisions.

How does this affect you?

Some individuals may benefit from this change. For example, if your family had a history of a genetic disorder which could have prevented you from applying for insurance for fear of receiving a rating or being declined, this information could no longer be used by insurance companies.

In addition, individuals who want to increase their coverage on an existing policy should be able to do so without the underwriter considering previously disclosed genetic information.

However, there is also a negative consequence to this change: the pricing of individual life insurance, critical illness, and disability insurance policies will likely need to increase to take into account the increased risk presented.

Wondering about how this new law affects you? Feel free to contact us.