Under California law, a disability income insurer that underwrites based on a test of an applicant's genetic characteristics must first:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10146 establishes standards for underwriting life and disability income insurance on the basis of tests of a person's genetic characteristics. The statute requires that insurers maintain strict confidentiality of personal information obtained through such testing and obtain informed consent before underwriting on the basis of a genetic characteristic test. It also prohibits unfair discrimination among individuals of the same class based on genetic tests. Genetic characteristics is defined in CIC §10147(b) as a gene or chromosome alteration known or statistically associated with an increased risk of disease, with no present symptoms. Because the tested rule is a California-specific disability underwriting standard, the question is anchored to AH-IV.2 and marked state=CA.
Why the other options are wrong
- B) No filing with the Department of Insurance is required before using genetic test results in underwriting. The statute's safeguards are informed consent, confidentiality, and non-discrimination, not a regulatory approval process for the test results themselves.
- C) Sharing the results with affiliated insurers would violate the strict confidentiality the statute requires. Genetic test information may not be distributed, and the law's confidentiality protections exist precisely to prevent such disclosure.
- D) A confirmatory retest at a laboratory chosen by the insurer is not required by the statute. The safeguards imposed are informed consent, confidentiality, and a prohibition on unfair discrimination, and none of them calls for a second test.
Memory hook
Genetic test for underwriting? Consent first, results kept under lock.