Life Insurance – Freedom to Travel Act

Overseas travel has always been a factor in underwriting individual life insurance applications, and its importance has increased as certain areas of the world become more dangerous for travelers.  This legislation – similar to legislation introduced last year – addresses that subject.  It restricts the ability of the insurer to deny life insurance coverage exclusively for reasons related to the applicant’s lawful travel.

This was a highly contentious issue, and life insurers sought to protect their ability to underwrite applications as they see fit.  The JLC was contacted by bill sponsor Samuel (Sandy) Rosenberg, who fully appreciates our experience with this particular issue.  This year’s legislation tightens the restrictions slightly, and still allows insurers to act appropriately when applicants seek to travel to dangerous parts of the world.  The bill passed.