IBA Compliance Connection

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Is there an Illinois law that requires or expressly permits banks to consider an individual’s status as a victim of domestic violence when selling, underwriting, renewing, or paying out claims for life or health insurance? We ask because our examiners recently pointed out that our policies do not have a reference to an FDIC rule prohibiting the consideration of domestic abuse in life and health insurance sales, unless permitted by state law.

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No. Like the FDIC rule, Illinois effectively prohibits banks from considering an individual’s status as a victim of domestic violence when selling, underwriting, renewing, or paying out claims for life or health insurance. The Illinois law expressly prohibits insurance sellers from discriminating because an individual has been the victim of domestic abuse, including refusing or restricting coverage, charging different rates, denying claims, or even asking about a history of domestic abuse.

For resources related to our guidance, please see:

  • FDIC Insurance Sales Regulations, 12 CFR 343.30(c) (“You may not sell or offer for sale, as principal, agent, or broker, any life or health insurance product if the status of the applicant or insured as a victim of domestic violence or as a provider of services to victims of domestic violence is considered as a criterion in any decision with regard to insurance underwriting, pricing, renewal, or scope of coverage of such product, or with regard to the payment of insurance claims on such product, except as required or expressly permitted under State law.”)

  • Illinois Insurance Code, 215 ILCS 5/155.22a(a) (“No company authorized to transact life, health, disability income, or property and casualty insurance in this State may: Deny, refuse to issue, refuse to renew, refuse to reissue, cancel, or otherwise terminate an insurance policy or restrict coverage on an individual because that individual is or has been the subject of abuse or because that individual seeks or has sought: (i) medical or psychological treatment for abuse; or (ii) protection or shelter from abuse; (2) Charge a different rate for the same coverage for an insurance policy because an individual insured under such policy has a history of or is a subject of abuse; (3) Deny a claim by an insured as a result of his or her status as being or having been a subject of abuse, except as otherwise permitted or required by the laws of this State; or (4) Ask an insured or an applicant for insurance whether that individual is or has been a subject of abuse or whether that individual seeks or has sought: (i) medical or psychological treatment specifically for abuse; or (ii) protection or shelter from abuse.”)