[Congressional Record Volume 142, Number 39 (Wednesday, March 20, 1996)]
[Senate]
[Pages S2429-S2430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WELLSTONE (for himself and Mr. Wyden):
  S. 1630. A bill to prevent discrimination against victims of abuse in 
all lines of insurance; to the Committee on Labor and Human Resources.


             the victims of abuse insurance protection act

 Mr. WELLSTONE. Mr. President, I am very pleased to be joined 
by Senator Ron Wyden today in introducing the Victims of Abuse 
Insurance Protection Act, legislation that will outlaw discrimination 
by insurance companies against the victims of domestic violence in all 
lines of insurance.
  With this legislation, we are trying to correct an abhorrent practice 
by many insurance companies--the denial of coverage to battered women. 
It is plain, old fashioned discrimination. It is profoundly unjust and 
wrong. And, it is the worst of blaming the victim. Denying women access 
to the insurance they require to foster their mobility out of an 
abusive situation must be stopped.
  There are many stories of women who have been physically abused and 
have sought proper medical care only to be turned away by insurance 
companies who said they were too high risk to insure.
  In Minnesota, three insurance companies denied an entire women's 
shelter insurance because, ``as a battered women's shelter, we were 
high risk.'' The Women's Shelter in Rochester, MN, was told that it was 
considered uninsurable because its employees are almost all battered 
women.
  Another shelter in rural Minnesota purchased a car so that women and 
children in danger who were trying to leave an abusive situation could 
use this anonymous vehicle and thus the abuser could not track their 
automobile to find them. The shelter could not find a company to 
provide them with automobile insurance once the companies knew of the 
risks surrounding battered women.
  A woman in Iowa named Sandra was denied life insurance after the 
company found out that she had been beaten up twice. In one incident, 
she had been so badly beaten by an ex-boyfriend that her cheekbones 
were splintered, and one of her eyes had to be put back in its socket. 
Her mother, Mary, was the one who originally applied for the life 
insurance policy, explaining

       I didn't ask for a lot of coverage. I just wanted to apply 
     for thousand dollar coverage, just enough that if something 
     happened, God forbid, that we could at least bury her.

  Mary was angry about the denial, so she wrote to State officials and 
the Iowa Insurance Commissioners Office tried to intervene on their 
behalf. In four separate letters, the insurance company officials 
stated they denied the coverage because of a history of assaults. In 
one letter they defended their decision by citing numerous documents 
which showed that people involved in domestic violence incidents are at 
a higher risk of death and injury than others, and, therefore, not a 
good risk.
  There are so many stories about victims of domestic abuse being 
denied fire insurance, homeowners insurance, life insurance, and health 
insurance--denied because they were victims of a crime. Domestic 
violence is the leading cause of injury to women, more common than auto 
accidents, muggings, and rapes by a stranger combined. It is the No. 1 
reason that women go to emergency rooms.
  This bill goes a long way toward treating domestic violence as the 
crime that it is--not a voluntary risky behavior that can be easily 
changed and not as a preexisting condition. Insurance company policies 
that deny coverage to victims only serve to perpetuate the myth that 
victims are responsible for their abuse.
  In order to address the practice of insurers using domestic violence 
as a basis for determining whom to cover and how much to charge with 
respect to health, life, disability, homeowners and auto insurance, 
this legislation prohibits insurance companies from discriminating 
against victims in any of the following ways: Denying or terminating 
insurance; limiting coverage or denying claims; charging higher 
premiums; or terminating health coverage for victims of abuse in 
situations where coverage was originally issued in the abuser's name, 
and acts of the abuser would cause the victim to lose coverage.
  This legislation also keeps victims' information confidential by 
prohibiting insurers from improperly using, disclosing, or transferring 
abuse-related information for any purpose unrelated to the direct 
provision of health care services.
  Mr. President, insurance companies should not be allowed to 
discriminate against anyone for being a victim of domestic violence. We 
may never know the full extent of the problem, but it is grossly unfair 
practice and should be prohibited.
  I ask unanimous consent that the full text of the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1630

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Victims of Abuse Insurance 
     Protection Act''.

     SEC. 2. DEFINITIONS.

       As used in this Act:
       (1) The term ``abuse'' means the occurrence of one or more 
     of the following acts between household or family (including 
     in-laws or extended family) members, spouses or former 
     spouses, or individuals engaged in or formerly engaged in a 
     sexually intimate relationship:
       (A) Attempting to cause or intentionally, knowingly, or 
     recklessly causing another person bodily injury, physical 
     harm, substantial emotional distress, psychological trauma, 
     rape, sexual assault, or involuntary sexual intercourse.
       (B) Engaging in a course of conduct or repeatedly 
     committing acts toward another person, including following 
     the person without proper authority and under circumstances 
     that place the person in reasonable fear of bodily injury or 
     physical harm.
       (C) Subjecting another person to false imprisonment or 
     kidnapping.
       (D) Attempting to cause or intentionally, knowingly, or 
     recklessly causing damage to property so as to intimidate or 
     attempt to control the behavior of another person.
       (2) The term ``abuse-related medical condition'' means a 
     medical condition which arises in whole or in part out of an 
     action or pattern of abuse.
       (3) The term ``abuse status'' means the fact or perception 
     that a person is, has been, or may be a subject of abuse, 
     irrespective of whether the person has sustained abuse-
     related medical conditions or has incurred abuse-related 
     claims.
       (4) The term ``health benefit plan'' means any public or 
     private entity or program that provides for payments for 
     health care, including--
       (A) a group health plan (as defined in section 607 of the 
     Employee Retirement Income Security Act of 1974) or a 
     multiple employer welfare arrangement (as defined in section 
     3(40) of such Act) that provides health benefits;
       (B) any other health insurance arrangement, including any 
     arrangement consisting of a hospital or medical expense 
     incurred policy or certificate, hospital or medical service 
     plan contract, or health maintenance organization subscriber 
     contract;

[[Page S2430]]

       (C) workers' compensation or similar insurance to the 
     extent that it relates to workers' compensation medical 
     benefits (as defined by the Federal Trade Commission); and
       (D) automobile medical insurance to the extent that it 
     relates to medical benefits (as defined by the Federal Trade 
     Commission).
       (5) The term ``health carrier'' means a person that 
     contracts or offers to contract on a risk-assuming basis to 
     provide, deliver, arrange for, pay for or reimburse any of 
     the cost of health care services unless the person assuming 
     the risk is accepting the risk from a duly licensed health 
     carrier.
       (6) The term ``insured'' means a party named on a policy, 
     certificate, or health benefit plan as the person with legal 
     rights to the benefits provided by the policy, certificate, 
     or health benefit plan. For group insurance, such term 
     includes a person who is a beneficiary covered by a group 
     policy, certificate, or health benefit plan.
       (7) The term ``insurer'' means any person, reciprocal 
     exchange, interinsurer, Lloyds insurer, fraternal benefit 
     society, or other legal entity engaged in the business of 
     insurance, including agents, brokers, adjusters, and third 
     party administrators. The term also includes health carriers, 
     health benefit plans, and life, disability, and property and 
     casualty insurers.
       (8) The term ``policy'' means a contract of insurance, 
     certificate, indemnity, suretyship, or annuity issued, 
     proposed for issuance or intended for issuance by an insurer, 
     including endorsements or riders to an insurance policy or 
     contract.
       (9) The term ``subject of abuse'' means a person to whom an 
     act of abuse is directed, a person who has had prior or 
     current injuries, illnesses, or disorders that resulted from 
     abuse, or a person who seeks, may have sought, or should have 
     sought medical or psychological treatment for abuse, 
     protection, court-ordered protection, or shelter from abuse.

     SEC. 3. DISCRIMINATORY ACTS PROHIBITED.

       (a) In General.--No insurer or health carrier may, directly 
     or indirectly, engage in any of the following acts or 
     practices on the basis that the applicant or insured, or any 
     person employed by the applicant or insured or with whom the 
     applicant or insured is known to have a relationship or 
     association, is, has been, or may be the subject of abuse:
       (1) Denying, refusing to issue, renew or reissue, or 
     canceling or otherwise terminating an insurance policy or 
     health benefit plan.
       (2) Restricting, excluding, or limiting insurance or health 
     benefit plan coverage for losses as a result of abuse or 
     denying a claim incurred by an insured as a result of abuse, 
     except as otherwise permitted or required by State laws 
     relating to life insurance beneficiaries.
       (3) Adding a premium differential to any insurance policy 
     or health benefit plan.
       (4) Terminating health coverage for a subject of abuse 
     because coverage was originally issued in the name of the 
     abuser and the abuser has divorced, separated from, or lost 
     custody of the subject of abuse or the abuser's coverage has 
     terminated voluntarily or involuntarily and the subject of 
     abuse does not qualify for extension of coverage under part 6 
     of subtitle B of title I or the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1161 et seq.) or 4980B of the 
     Internal Revenue Code of 1986. Nothing in this paragraph 
     prohibits the insurer from requiring the subject of abuse to 
     pay the full premium for the subject's coverage under the 
     health plan. The insurer may terminate group coverage after 
     the continuation coverage required by this paragraph has been 
     in force for 18 months if it offers conversion to an 
     equivalent individual plan. The continuation of health 
     coverage required by this paragraph shall be satisfied by any 
     extension of coverage under part 6 of subtitle B of title I 
     or the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1161 et seq.) or 4980B of the Internal Revenue Code of 
     1986 provided to a subject of abuse and is not intended to be 
     in addition to any extension of coverage provided under part 
     6 of subtitle B of title I or the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1161 et seq.) or 4980B of the 
     Internal Revenue Code of 1986.
       (b) Use of Information.--
       (1) In general.--No insurer may use, disclose, or transfer 
     information relating to an applicant's or insured's abuse 
     status or abuse-related medical condition or the applicant's 
     or insured's status as a family member, employer or 
     associate, person in a relationship with a subject of abuse 
     for any purpose unrelated to the direct provision of health 
     care services unless such use, disclosure, or transfer is 
     required by an order of an entity with authority to regulate 
     insurance or an order of a court of competent jurisdiction or 
     by abuse reporting laws. Nothing in this paragraph shall be 
     construed as limiting or precluding a subject of abuse from 
     obtaining the subject's own medical records from an insurer.
       (2) Authority of subject of abuse.--A subject of abuse, at 
     the absolute discretion of the subject of abuse, may provide 
     evidence of abuse to an insurer for the limited purpose of 
     facilitating treatment of an abuse-related condition or 
     demonstrating that a condition is abuse-related. Nothing in 
     this paragraph shall be construed as authorizing an insurer 
     or health carrier to disregard such provided evidence.

     SEC. 4. REASONS FOR ADVERSE ACTIONS.

       An insurer that takes any adverse action relating to any 
     plan or policy of a subject of abuse, shall advise the 
     subject of abuse applicant or insured of the specific reasons 
     for the action in writing. Reference to general underwriting 
     practices or guidelines does not constitute a specific 
     reason.

     SEC. 5. LIFE INSURANCE.

       Nothing in this Act shall be construed to prohibit a life 
     insurer from declining to issue a life insurance policy if 
     the applicant or prospective owner of the policy is or would 
     be designated as a beneficiary of the policy, and if--
       (1) the applicant or prospective owner of the policy lacks 
     an insurable interest in the insured; or
       (2) the applicant or prospective owner of the policy is 
     known, on the basis of police or court records, to have 
     committed an act of abuse.

     SEC. 6. SUBROGATION WITHOUT CONSENT PROHIBITED.

       Except where the subject of abuse has already recovered 
     damages, subrogation of claims resulting from abuse is 
     prohibited with the informed consent of the subject of abuse.

     SEC. 7. ENFORCEMENT.

       (a) Federal Trade Commission.--The Federal Trade Commission 
     shall have the power to examine and investigate any insurer 
     to determine whether such insurer has been or is engaged in 
     any act or practice prohibited by this Act. If the Federal 
     Trade Commission determines an insurer has been or is engaged 
     in any act or practice prohibited by this Act, the Commission 
     may take action against such insurer by the issuance of a 
     cease and desist order as if the insurer was in violation of 
     section 5 of the Federal Trade Commission Act. Such cease and 
     desist order may include any individual relief warranted 
     under the circumstances, including temporary, preliminary, 
     and permanent injunctive and compensatory relief.
       (b) Private Cause of Action.--An applicant or insured 
     claiming to be adversely affected by an act or practice of an 
     insurer in violation of this Act may maintain an action 
     against the insurer in a Federal or State court of original 
     jurisdiction. Upon proof of such conduct by a preponderance 
     of the evidence, the court may award appropriate relief, 
     including temporary, preliminary, and permanent injunctive 
     relief and compensatory and punitive damages, as well as the 
     costs of suit and reasonable fees for the aggrieved 
     individual's attorneys and expert witnesses. With respect to 
     compensatory damages, the aggrieved individual may elect, at 
     any time prior to the rendering of final judgment, to recover 
     in lieu of actual damages, an award of statutory damages in 
     the amount of $5,000 for each violation.
                                 ______