The Financial Services Council (FSC) has confirmed further consumer protections will be included in the new Life Insurance Code of Practice, including guidelines on family and domestic violence as well as new protections in the genetics moratorium.
Under the new Life Code, life insurers would be required to develop and publish their policy on supporting people experiencing family and domestic violence from 1 July 2023.
The Moratorium on Genetic Tests would also be extended indefinitely and included in the new Life Code.
“The FSC is committed to improving consumer outcomes across the life insurance industry, especially for vulnerable people,” said FSC chief executive, Blake Briggs.
“These guidelines will help industry navigate this difficult and sensitive area, and bring a degree of consistency in how industry supports people experiencing family and domestic violence.”
Mr Briggs also explained that the FSC and life insurance industry would give immunity to any genetic test taken while the Moratorium on Genetic Tests is in place, meaning that consumers would be able to undergo a genetic test without fear that the result could stop them from taking out life insurance.
“Extending the moratorium with immunity means consumers who are tested now will never need to share their genetic test results with their life insurer and so won’t be declined for life insurance later,” Mr Briggs concluded.
[b]Insurers can ask for test results in some circumstances:[/b]
As part of the application process for the benefits listed below, insurers may only ask for or use the results of a Genetic Test if the total amount of over you would have – including both the Insurance being applied for and any existing individual and group insurance with all life insurers – is more than any of the following:
i) $500,000 of lump sum death Insurance
ii) $500,000 of total permanent disability (TPD) Insurance
iii) $200,000 of trauma and/or critical illness Insurance
iv) $4,000 a month of any combination of income protection, salary continuance or business expenses Insurance.
If the total amount of Insurance exceeds any of the limits above, insurers may ask for and use the
result of a previously taken Genetic Test or planned test when assessing the full amount of Insurance being
applied for across all types. A planned test means a person has consented to a Genetic Test. Insurers can do this
provided that an evidence base shows that the test has relevance to the Insurance applied for, in line with the
Disability Discrimination Act.
I thought there was a new association representing the life insurers.
FSC represents the banks and should stick to their patch.
The FSC continues to display a lack of understanding of the issues impacting the life industry.
After years of losing money and supposedly a big focus on sustainability, how can the FSC agree to support this anti-selection “indefinitely”?
I expect the FSC will say that it’s about consumer protection. What about the consumers who never claim who will pay for this via higher claims. Where is their protection?
So now we are marriage guidance counselors/social workers too? Will this affect our PI?