SCS SB 865 -- LIFE INSURANCE DISCRIMINATION

SPONSOR:  Rupp (Scharnhorst)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Financial Institutions by a vote of 7 to 0.

This substitute prohibits life insurance companies from denying
or refusing to accept an application for life insurance; refusing
to renew, canceling, restricting, or otherwise terminating a
policy of life insurance; or charging a different rate for the
same life insurance coverage based upon the applicant's or
insured's past or future lawful travel destinations.  This
provision will not prohibit a life insurance company from denying
an application for life insurance or charging a different premium
or rate for coverage under the policy based on a specific travel
destination where the denial or rate differential is based upon
sound actuarial principles or is related to actual or reasonably
anticipated experience.  A violation of this provision
constitutes an unfair trade practice as defined in Sections
375.930 - 375.948, RSMo.  The provisions of the substitute will
apply to life insurance policies issued or renewed on or after
August 28, 2008.

An itemized income tax deduction is authorized for life insurance
premium payments made for life insurance policies which have a
special needs trust as the sole beneficiary.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2009, FY 2010, and FY 2011.  Estimated Income on Other
State Funds of $5,000 in FY 2009, $0 in FY 2010, and $0 in
FY 2011.

PROPONENTS:  Supporters say that the bill will help consumers who
legally travel outside the United States to retain their life
insurance coverage.  Many life insurance companies currently will
cancel, deny coverage, or increase rates on insurance policies
for people who travel to countries listed on the federal
government's watch list.

Testifying for the bill were Representative Scharnhorst for
Senator Rupp; Henry Tettlebaum; Aaron Vickar; Life Insurance
Association of Missouri; Prudential Financial, Incorporated; and
American Council of Life Insurers.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm