Life Insurance Fairness for Travelers Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to make it unlawful for any insurer to: (1) deny any person life insurance, or to otherwise discriminate in the issuance, cancellation, amount of coverage, or conditions of life insurance, based upon the person's intent to engage in future lawful foreign travel; and (2) charge rates for life insurance which are excessive or unfairly discriminatory in relation to the actuarial risk associated with future lawful foreign travel of such person.
Provides for administrative enforcement of this Act by either: (1) the chief law enforcement officer of a state, or an official or agency designated by a state; or (2) the Secretary of the Treasury.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3639 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3639
To establish minimum standards relating to a factor for life insurance
eligibility and rates, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 29, 2005
Ms. Wasserman Schultz (for herself, Ms. Ros-Lehtinen, Mr. Frank of
Massachusetts, Mr. Bachus, Mr. Wexler, Mr. Crowley, Mr. Israel, Ms.
Bean, Mrs. Lowey, Mr. Filner, Mr. Miller of Florida, Ms. Schakowsky,
Mr. Fitzpatrick of Pennsylvania, Mr. Cleaver, Ms. Berkley, Mr. Berman,
Mr. Waxman, Mr. Hastings of Florida, Mr. Davis of Alabama, Mrs.
Maloney, Mr. Price of Georgia, and Ms. Herseth) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish minimum standards relating to a factor for life insurance
eligibility and rates, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Life Insurance Fairness for
Travelers Act of 2005''.
SEC. 2. AMENDMENTS TO TRIA.
The Terrorism Risk Insurance Act of 2002 (Public Law 107-297; 116
Stat. 2322) is amended by adding at the end the following new title:
``TITLE IV--FAIRNESS FOR LIFE INSURANCE PURCHASERS
``SEC. 401. CONGRESSIONAL FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds that--
``(1) life insurance companies are increasingly using the
future plans of Americans to engage in lawful foreign travel as
a reason to either deny persons life insurance or to charge
premiums that are not commensurate with the risk of such
travel; and
``(2) that such denials of insurance and disproportionate
premiums may deter Americans from purchasing insurance that
they and their families may need.
``(b) Purpose.--The purpose of this title is to establish uniform
rules relating to the use of foreign travel as a factor in setting life
insurance eligibility and rating.
``SEC. 402. PROHIBITION AGAINST DISCRIMINATION IN LIFE INSURANCE
POLICIES BASED ON FUTURE FOREIGN TRAVEL PLANS.
``(a) In General.--It shall be unlawful for any insurer to deny any
person life insurance, or to otherwise discriminate in the issuance,
cancellation, amount of coverage, or conditions of life insurance,
based upon the intent of such person to engage in future lawful foreign
travel.
``(b) Insurance Rates.--It shall be unlawful for any insurer to
charge rates for life insurance which are excessive or unfairly
discriminatory in relation to the actuarial risk associated with future
lawful foreign travel of such person.
``SEC. 403. ADMINISTRATIVE ENFORCEMENT.
``(a) State Enforcement.--In addition to such other remedies as are
provided under State law, the chief law enforcement officer of a State,
or an official or agency designated by a State, may bring an action to
enjoin any person who has violated or is violating this title.
``(b) Enforcement by the Secretary.--The Secretary shall enforce
this Act in any State that the Secretary determines does not have a
comparable State law or a law that the Secretary has determined is not
inconsistent under section 405.
``SEC. 404. EFFECT ON STATE LAWS.
``(a) In General.--This title does not annul, alter, or affect, or
exempt any insurer subject to the provisions of this title from
complying with the laws of any State with respect to the use of
prospective lawful foreign travel for the purposes of underwriting or
rating life insurance except to the extent that such laws are
inconsistent with any provision of this title and then only to the
extent of the inconsistency. The Secretary is authorized to determine
whether such inconsistencies exist. The Secretary may not determine
that any State law is inconsistent with any provision of this title if
the Secretary determines that such law gives greater protection to the
insured.
``(b) State Exemptions.--The Secretary shall, by regulation, exempt
from the requirements of this title any class of insurance transactions
within any State if the Secretary determines that under the law of that
State that class of transaction is subject to requirements
substantially similar to those imposed under this title or that such
law gives greater protection to the consumer, and that there is
adequate provision for enforcement.
``SEC. 405. DEFINITIONS.
``In this title, the following definitions shall apply:
``(1) Insurer.--The term `insurer' means any entity,
including any affiliate thereof, that is licensed or admitted
to engage in the business of providing life insurance in any
State.
``(2) Insured.--The term `insured' means any natural person
who purchases, or attempts to purchase, life insurance.
``(3) Life insurance.--
``(A) In general.--The term `life insurance' means
insurance for which the probabilities of the duration
of human life or the rate of mortality are an element
or condition of insurance.
``(B) Included insurance.--Such term includes the
granting of--
``(i) endowment benefits;
``(ii) additional benefits in the event of
death by accident or accidental means;
``(iii) disability income benefits;
``(iv) additional disability benefits that
operate to safeguard the contract from lapse or
to provide a special surrender value, or
special benefit in the event of total and
permanent disability;
``(v) benefits that provide payment or
reimbursement for long-term home health care,
or long-term care in a nursing home or other
related facility;
``(vi) burial insurance; and
``(vii) optional modes of settlement of
proceeds of life insurance.
``(C) Exclusions.--Such term does not include
property and casualty insurance, health insurance or
workers compensation insurance.
``(4) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``SEC. 406. REGULATIONS.
`` The Secretary shall issue regulations to carry out the purposes
of this title.
``SEC. 407. APPLICABILITY.
``This title shall apply to any policy for life insurance coverage
issued, renewed, altered, or modified or canceled after the expiration
of the 6-month period beginning on the date of the enactment of the
Life Insurance Fairness for Travelers Act of 2005.''.
SEC. 3. TIMING OF REGULATIONS.
The Secretary of the Treasury shall issue the regulations required
by section 406 of the Terrorism Risk Insurance Act of 2002, as added by
section 2 of this Act, not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act.
SEC. 4. TECHNICAL AMENDMENT.
The table of contents in section 1(b) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the
end the following new items:
``TITLE IV--FAIRNESS FOR LIFE INSURANCE PURCHASERS
``Sec. 401. Congressional findings and purposes.
``Sec. 402. Prohibition against discrimination in life insurance
policies based on future foreign travel
plans.
``Sec. 403. Administrative enforcement.
``Sec. 404. Effect on State laws.
``Sec. 405. Definitions.
``Sec. 406. Regulations.
``Sec. 407. Applicability.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
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