Thank you for doing business with Canada Life. Here’s the latest issue of the eBulletin from Canada Life with information to help you in your business with us. Please forward to your advisors where appropriate.
On March 8, 2017, the House of Commons passed Bill S-201: An Act to prohibit and prevent genetic discrimination. The intent of the Act is to make it illegal for an insurer to require a person to undergo genetic testing, or disclose the results of previous genetic tests, as a condition of the insurer’s providing coverage.
The Act will come into effect upon receiving Royal Assent, which is expected to occur early April 2017. This new law contains penalties for non-compliance, including fines of up to $1 million and/or imprisonment for up to five years.
This new legislation is expected to affect how we as an industry underwrite and administer individual and group insurance business.
The Canadian Life and Health Insurance Association (CLHIA) has indicated it is reviewing the impact this Bill is expected to have on consumers and is considering its options in light of Parliament’s decision. We support the CLHIA’s position that Bill S-201 not only infringes on provincial jurisdiction over insurance, but will have unintended consequences as well. Over the long term, there’s a risk that many Canadians may no longer be able to afford life and other forms of insurance that depend on medical underwriting.
As a company, we’re adjusting our processes, applications and forms in order to be compliant with the Act when it comes into effect.
In addition, we’re reviewing potential changes to our underwriting, pricing and products both for individual life and living benefits insurance, and for optional group life, critical illness and disability insurance in order to address the increased risk of adverse selection that will arise as a result of the new legislation.
Any process changes will be communicated promptly.
Until the new Act takes effect, we’ll continue to adhere to the longstanding Industry Code on Genetic Testing Information for Insurance Underwriting, which has been in effect since the early 1980s. Compliance requires that an insurer not ask a proposed insured to undergo genetic testing.
You may receive questions about what these changes will mean for your clients. The following email account is dedicated to responding to such requests.
· Following our usual process, any media inquiries should be referred to Tim Oracheski, Director, Media and Public Relations at (204) 946-8961.You can also email our media relations team at Media.Relations@canadalife.com.
· The social media team will also be monitoring online discussions as usual. Please send any concerns to socialmedia@canadalife.com.