H.B. 170

1

DOMESTIC ABUSE INSURANCE PRACTICES
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Sheryl L. Allen
5 Brian R. Allen

6 AN ACT RELATING TO INSURANCE; PROVIDING SCOPE OF ACT; DEFINING TERMS;
7 PROHIBITING DISCRIMINATION BASED ON DOMESTIC VIOLENCE OR CHILD
8 ABUSE; PROHIBITING INVESTIGATION OR DISCLOSURE OF DOMESTIC VIOLENCE
9 OR CHILD ABUSE UNDER CERTAIN CIRCUMSTANCES; PROVIDING IMMUNITY;
10 AND PROVIDING FOR ENFORCEMENT.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 ENACTS:
13 31A-21-501, Utah Code Annotated 1953
14 31A-21-502, Utah Code Annotated 1953
15 31A-21-503, Utah Code Annotated 1953
16 31A-21-504, Utah Code Annotated 1953
17 31A-21-505, Utah Code Annotated 1953
18 31A-21-506, Utah Code Annotated 1953
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 31A-21-501 is enacted to read:
21 Part 5. Domestic Violence or Child Abuse - Insurance Practices
22 31A-21-501. Definitions.
23 For purposes of this part:
24 (1) "Applicant" means:
25 (a) in the case of an individual life or disability policy, the person who seeks to contract
26 for insurance benefits; or
27 (b) in the case of a group life or disability policy, the proposed certificate holder.

1 (2) "Cohabitant" means an emancipated individual pursuant to Section 15-2-1 or an
2 individual who is 16 years of age or older who:
3 (a) is or was a spouse of the other party;
4 (b) is or was living as if a spouse of the other party;
5 (c) is related by blood or marriage to the other party;
6 (d) has one or more children in common with the other party; or
7 (e) resides or has resided in the same residence as the other party.
8 (3) "Child abuse" means the commission or attempt to commit against a child a criminal
9 offense described in:
10 (a) Title 76, Chapter 5, Part 1, Assault and Related Offenses; h [ or ] h
11 (b) Title 76, Chapter 5, Part 4, Sexual Offenses h [. ] ; h
11a h (c) SECTION 76-9-702, LEWDNESS-GROSS LEWDNESS; OR
11b (d) SECTION 76-9-702.5, LEWDNESS-INVOLVING A CHILD. h
12 (4) "Domestic violence" means any criminal offense involving violence or physical harm
13 or threat of violence or physical harm, or any attempt, conspiracy, or solicitation to commit a
14 criminal offense involving violence or physical harm, when committed by one cohabitant against
15 another and includes commission or attempt to commit, any of the following offenses by one
16 cohabitant against another:
17 (a) aggravated assault, as described in Section 76-5-103;
18 (b) assault, as described in Section 76-5-102;
19 (c) criminal homicide, as described in Section 76-5-201;
20 (d) harassment, as described in Section 76-5-106;
21 (e) telephone harassment, as described in Section 76-9-201;
22 (f) kidnaping, child kidnaping, or aggravated kidnaping, as described in Sections 76-5-301,
23 76-5-301.1, and 76-5-302;
24 (g) mayhem, as described in Section 76-5-105;
25 (h) sexual offenses, as described in Title 76, Chapter 5, Part 4, and Title 76, Chapter 5a;
26 (i) stalking, as described in Section 76-5-106.5;
27 (j) unlawful detention, as described in Section 76-5-304;
28 (k) violation of a protective order or ex parte protective order, as described in Section
29 76-5-108;
30 (l) any offense against property described in Title 76, Chapter 6, Part 1, 2, or 3;
31 (m) possession of a deadly weapon with intent to assault, as described in Section

Revised February 10, 1997 - lilac-February 7, 1997

- 2 -

1 76-10-507; or
2 (n) discharge of a firearm from a vehicle, near a highway, or in the direction of any person,
3 building, or vehicle, as described in Section 76-10-508.
4 (5) "Subject of domestic abuse" means an individual who is, has been, may currently be,
5 or may have been subject to domestic violence or child abuse.
6 Section 2. Section 31A-21-502 is enacted to read:
7 31A-21-502. Scope of part.
8 This part applies to h [ all ] ONLY h life and disability insurance.
9 Section 3. Section 31A-21-503 is enacted to read:
10 31A-21-503. Discrimination based on domestic violence or child abuse prohibited.
11 (1) Except as provided in Subsection (2), an insurer of life or disability insurance may not
12 consider whether an insured or applicant is the subject of domestic abuse as a factor to:
13 (a) refuse to insure the applicant;
14 (b) refuse to continue to insure the insured;
15 (c) refuse to renew or reissue a policy to insure the insured or applicant;
16 (d) limit the amount, extent, or kind of coverage available to the insured or applicant;
17 (e) charge a different rate for coverage to the insured or applicant;
18 (f) exclude or limit benefits or coverage under an insurance policy or contract for losses
19 incurred;
19a h (g) DENY A CLAIM; h or
20 h [(g) ] (h) h terminate coverage or fail to provide conversion privileges in violation of
20a Sections
21 31A-22-612 and 31A-22-710 under a group disability policy for the insured because the coverage
22 was issued in the name of the perpetrator of the domestic violence or abuse.
23 (2) (a) Notwithstanding Subsection (1), an insurer may underwrite based on the physical
24 or mental condition of an insured or applicant if the underwriting is based on a determination that
25 there is a correlation between the medical h OR MENTAL h condition and a material increase in
25a insurance risk.
25b h (b) FOR PURPOSES OF SUBSECTION (2)(a), THE FACT THAT AN INSURED OR APPLICANT IS
25c A SUBJECT OF DOMESTIC ABUSE IS NOT A MENTAL OR PHYSICAL CONDITION. h
26 h [(b) ] (c) h The determination required by Subsection (2)(a) shall be made in
26a conformance with
27 sound actuarial principles.
- 3 -

Revised February 10, 1997 lilac-February 7, 1997

28 h [(c) ] (d) h Within 30 days after receiving an oral or written request from an insured or
28a applicant,
29 an insurer shall disclose in writing:
30 (i) the basis of an action permitted under Subsection (2)(a); and
31 (ii) if the policy has been issued or modified, the extent the action taken will impact the

lilac-February 7, 1997

- 3a -

1 amount, extent, or kind of coverage or benefits available to the insured.
2 Section 4. Section 31A-21-504 is enacted to read:
3 31A-21-504. Investigation -- Use of information used -- Disclosure.
4 (1) An insurer may not ask an insured or applicant h [ applying for life or disability
4a insurance ] h
5 or use any other means to determine whether the insured or applicant is the subject of domestic
6 abuse.
7 (2) If an insured or applicant voluntarily discloses to the insurer or to the insured's or
8 applicant's treating physician that the insured or applicant or a member of the insured's or
9 applicant's household is the subject of domestic abuse, an insurer may not use the information of
10 domestic violence or child abuse in violation of this part.
11 (3) (a) An insurer may not disclose or transfer information to a third party relating to
12 whether a specifically identifiable insured or applicant is the subject of domestic abuse unless the
13 information:
14 (i) is required to be disclosed by the commissioner;
15 (ii) is required to be disclosed by a court of competent jurisdiction;
16 (iii) is necessary for the direct provision of health care services;
17 (iv) is permitted to be disclosed to an authorized agency under Chapter 31, Insurance
18 Fraud Act;
19 (v) is required to be disclosed by abuse reporting laws; or
20 (vi) is authorized to be disclosed by the written consent of the individual who is the subject
21 of domestic abuse, if that person is at least 18 years old.
22 (b) Subsection (3)(a) may not prevent an insured or applicant from obtaining the insured's
23 or applicant's own medical h OR INSURANCE h records.
24 (c) Disclosure of information permitted under Subsection (3)(a) is subject to any state or
25 federal law related to the confidentiality of medical information.
25a h (d) FOR PURPOSES OF SUBSECTION (3)(a), "THIRD PARTY" DOES NOT INCLUDE AN
25b INSURER'S EMPLOYEES, AGENTS, OR CONTRACTORS WHO ARE ENGAGED IN THE INSURER'S
25c NECESSARY BUSINESS OPERATION. h
26 (4) This section may not be construed to prohibit an insurer from:
27 (a) asking an applicant or insured about a medical condition, even if the condition is
- 4 -

lilac-February 7, 1997

28 related to domestic violence or child abuse;
29 (b) using information obtained under Subsection (4)(a) for the purpose of actions or
30 practices permitted under this part.
31 Section 5. Section 31A-21-505 is enacted to read:

























- 4a -

lilac-February 7, 1997

1 31A-21-505. Immunity.
2 An insurer that issues a life or disability insurance policy to an individual who is the
3 subject of domestic abuse is not liable civilly or criminally for the death of or any injuries to the
4 insured as a result of domestic violence or child abuse beyond the obligations of the insurer under:
5 (1) the insurance policy; or
6 (2) this title.
7 Section 6. Section 31A-21-506 is enacted to read:
8 31A-21-506. Enforcement -- Private rights.
9 (1) An insurer that violates this part is subject to any penalty permitted under this title.
10 (2) This part does not:
11 (a) create a private right of action for a violation of this part; or
12 (b) limit or impair the right of an individual to sue and recover damages from the insurer
13 in a civil action for a cause of action that is not based on a violation of this part.




Legislative Review Note
as of 11-25-96 9:19 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Committee Note

The Business, Labor, and Economic Development Interim Committee recommended this bill.

- 5 -