Life and long‑term‑care insurers urge subcommittee to oppose broad ban on genetic information in underwriting

Curtis Leonard, regional vice president for state relations at the American Council of Life Insurers, introduced industry witnesses who warned that H.3257 would fundamentally alter underwriting for voluntary long‑term contracts such as life, disability and long‑term care insurance. "The core issue is how voluntary long term insurance contracts work and why symmetry of information is key," Jan Graber, senior actuary at the American Council of Life Insurers, told the committee. "If one side has information the other side lacks and uses that knowledge to influence their decision of when to apply for coverage and the amount of coverage to purchase … adverse selection can build up quietly."

Graber noted that Congress deliberately limited the Genetic Information Nondiscrimination Act to health insurance and employment and excluded life and long‑term products because those contracts rely on accurate, upfront underwriting. She argued a broad prohibition “undermines the actuarial foundation of this product” and could lead to higher premiums for future buyers.

Paul Quartararo, senior medical director for New York Life, reinforced those concerns, saying he was not aware of insurers that routinely demand genetic tests and that underwriting is a holistic process that includes but does not depend on genetic information. "We do cover people who have genetic abnormalities… We are looking to find more people to insure," Quartararo said.

Committee members did not take a vote on H.3257 during the session. The chair thanked the witnesses and indicated the subcommittee would reconvene on related items in the future.