§ 27-61-4 - Unfair discriminatory acts relating to life insurance. - Rhode Island Statutes

SECTION 27-61-4

   § 27-61-4  Unfair discriminatory actsrelating to life insurance. – (a) The following acts are prohibited as unfairly discriminatory:

   (1) Denying, refusing to issue, renew or reissue, cancelingor otherwise terminating, restricting or excluding insurance coverage on oradding a premium differential to a life insurance policy for an applicant orinsured on the basis of the applicant's or insured's abuse status;

   (2) Excluding, limiting or denying benefits on a lifeinsurance policy on the basis of an insured's abuse status except as permittedor required by the laws of this state relating to acts of abuse committed by alife insurance beneficiary;

   (3) When the insurer has information in its possession thatclearly indicates that the insured or applicant is a subject of abuse,disclosure or transfer by a person employed by or contracting with an insurerof confidential abuse information, which is information about acts of abuse orabuse status of a subject of abuse, the address and telephone number (home andwork) of a subject of abuse, or the status of an applicant or insured as afamily member, employer or associate of, or a person in a relationship with, asubject of abuse, for any purpose or to any person, except:

   (A) To a subject of abuse or an individual specificallydesignated in writing by the subject of abuse;

   (B) To a health care provider for the direct provision ofhealth care services;

   (C) To a licensed physician identified and designated by thesubject of abuse;

   (D) When ordered by the commissioner or a court of competentjurisdiction or required by law;

   (E) When necessary for a valid business purpose to transferinformation that includes confidential abuse information that cannot reasonablybe segregated, confidential abuse information may be disclosed only to thefollowing persons:

   (I) A reinsurer that seeks to indemnify or indemnifies all orany part of a policy covering a subject of abuse and that cannot underwrite orsatisfy its obligations under the reinsurance agreement without that disclosure;

   (II) A party to a proposed or consummated sale, transfer,merger or consolidation of all or part of the business of the insurer;

   (III) Medical or claims personnel contracting with theinsurer, only where necessary to process an application or perform theinsurer's duties under the policy or to protect the safety or privacy of asubject of abuse (also includes parent or affiliate companies of the insurerthat have service agreements with the insurer); or

   (IV) With respect to address and telephone number, toentities with whom the insurer transacts business when the business cannot betransacted without the address and telephone number;

   (F) An attorney who needs the information to represent theinsurer effectively, provided the insurer notifies the attorney of itsobligations under this chapter and requests that the attorney exercise duediligence to protect the confidential abuse information consistent with theattorney's obligation to represent the insurer;

   (G) To the policyowner or assignee, in the course of deliveryof the policy, if the policy contains information about abuse status; and

   (H) To any other entities deemed appropriate by thecommissioner.

   (ii) This subsection does not preclude a subject of abusefrom obtaining his or her insurance records.

   (4) Requesting information about abuse status, or making useof this information, however obtained.

   (b) This section does not prohibit a life insurer fromdeclining to issue a life insurance policy if:

   (1) The applicant or prospective owner of the policy lacks aninsurable interest in the insured;

   (2) The applicant or prospective owner of the policy isknown, on the basis of medical, police or court records, to have committed anact of abuse against the proposed insured; or

   (3) The insured or prospective insured is a subject of abuse,and that person, or a person who has assumed the care of that person if a minoror incapacitated, has objected to the issuance of the policy on the ground thatthe policy would be issued to or for the direct or indirect benefit of theabuser.

   (c) This section does not prohibit a life insurer from askingabout a medical condition or from using medical information to underwrite or tocarry out its duties under the policy, even if the medical information isrelated to a medical condition that the insurer knows or has reason to know isabuse-related, to the extent otherwise permitted under this chapter and otherapplicable law.

   (d) A life insurer shall not be held civilly or criminallyliable for the death of or injury to an insured resulting from any action takenin a good faith effort to comply with the requirements of this chapter. Thissubsection does not prevent an action to investigate or enforce a violation ofthis chapter or to assert any other claims authorized by law.