New CommInsure Application – Genetic Testing

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CommInsure has informed advisers it will be updating its CommInsure Protection Application form to take into account industry-imposed changes in respect to genetic tests.

The Financial Services Council has introduced a standard that commences from 1 July 2019. It says the purpose of this standard is to ensure consumers “…can access a level of life insurance without being asked about the result of a previously taken genetic test.”

CommInsure notes this moratorium commences for new applications received on 1 July 2019 and applies until 30 June 2024.

It added that, while life insurance providers may only ask for or use the results of a genetic test if the total amounts of cover the applicant would have, including both the cover being applied for and any existing individual and group insurance cover with all life insurers in aggregate, is more than any of the following:

  • $500,000 of lump sum death cover
  • $500,000 of total permanent disability cover (TPD)
  • $200,000 of trauma and/or critical illness cover
  • $4,000 a month in total of any combination of income protection, or salary continuance.

The insurer says it has made an update to its Application Form to ensure it is compliant with the FSC Standard.”

From 1 July 2019, when its underwriters assess a new application they will apply the new genetic testing rules regardless of how the client applies, even if the client use the old application form.