Seven companies have been fined for either denying an individual a life insurance policy or charging higher premiums based on an applicant's intentions to travel to a foreign country.
In 2006, Insurance Commissioner Kevin McCarty requested that the legislature adopt a law that would allow a company to utilize foreign travel as part of its underwriting criteria if the policyholder is part of an actuarially supported class.
Under a recent annual report on the issue, the Office of Insurance Regulation indicated it conducted a company survey of all 524 entities that market life insurance policies in the state. Some 430 companies responded to the survey, which covered 1.3 million applications. Four companies were found to have rejected seven applications based on an applicant's travel plans, while another three companies rejected nine applications based on similar criteria.
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