The Genetic Non-Discrimination Act (GNDA) — received Royal Assent on May 4, 2017. It prevents employers, insurance companies and anyone else providing goods and services via a contract from asking people to undergo genetic testing or to disclose genetic test results.
Why would this affect Insurance Rates? Insurance companies fear that a potentially high-risk client – someone genetically predisposed to breast cancer, for instance – could buy a large insurance policy at the same rate as a someone without the cancer gene. They are also concerned that they might buy more than they would of initially, since they know they have a predisposition to a particular illness. This is called Anti-Selection.
In response to this news, Insurance Companies are either going to raise rates or they are going to no longer offer certain products, such as Critical Illness. If you have been sitting on the fence in regards to purchasing an insurance contract you will want to contact your Insurance Agent right away.
I will be contacting my clients to discuss this in greater detail. In the meantime, please call me with any questions.
Glendinning Insurance Services, Resource Specialist