Title 27
Insurance

Chapter 60.1
Unfair Discrimination Against Subjects of Abuse in Property and Casualty Insurance

§ 27-60.1-5. Unfairly discriminatory acts relating to property and casualty insurance.

(a) It is unfairly discriminatory to deny, refuse to issue, renew or reissue; to cancel or otherwise terminate; restrict or exclude coverage on; or to add a premium differential to a property and casualty insurance policy on the basis of the applicant’s or insured’s abuse status.

(b) It is unfairly discriminatory to:

(1) Exclude or limit payment for a covered loss or deny a covered claim incurred as a result of abuse by a person other than a co-insured; or

(2) Use exclusions or limitations on coverage that the commissioner has determined by regulation promulgated pursuant to this chapter unreasonably restrict the ability of subjects of abuse to be indemnified for losses.

(c) This section shall not require payment in excess of the loss or policy limits.

(d) Nothing in this chapter shall be construed to prohibit an insurer or insurance professional from applying reasonable standards of proof to claims under this section.

(e) When the insurer or insurance professional has information in its possession that clearly indicates that the insured, applicant, or claimant is a subject of abuse, it is unfairly discriminatory, by a person employed by or contracting with an insurer, to disclose or transfer confidential abuse information, as defined in this chapter, for any purpose or to any person, except:

(1) To the subject of abuse or an individual specifically designated in writing by the subject of abuse;

(2) When ordered by the commissioner or a court of competent jurisdiction or otherwise required by law;

(3) When necessary for a valid business purpose to transfer information that includes confidential abuse information that cannot reasonably be segregated without undue hardship, confidential abuse information may be disclosed only if the recipient has executed a written agreement to be bound by the prohibitions of this chapter in all respects and to be subject to the enforcement of this chapter by the courts of this state for the benefit of the applicant or the insured, and only to the following persons:

(i) A reinsurer that seeks to indemnify or indemnifies all or any part of a policy covering a subject of abuse and that cannot underwrite or satisfy its obligations under the reinsurance agreement without that disclosure;

(ii) A party to a proposed or consummated sale, transfer, merger, or consolidation of all or part of the business of the insurer or insurance professional;

(iii) Medical or claims personnel contracting with the insurer or insurance professional, only where necessary to process an application or perform the insurer’s or insurance professional’s duties under the policy or to protect the safety or privacy of a subject of abuse (also includes parent or affiliate companies of the insurer or insurance professional that have service agreements with the insurer or insurance professional); or

(iv) With respect to address and telephone number, to entities with whom the insurer transacts business when the business cannot be transacted without the address and telephone number;

(4) To an attorney who needs the information to represent the insurer or insurance professional effectively, provided the insurer or insurance professional notifies the attorney of its obligations under this chapter and requests that the attorney exercise due diligence to protect the confidential abuse information consistent with the attorney’s obligation to represent the insurer or insurance professional; or

(5) To any other entities deemed appropriate by the commissioner.

(f) It is unfairly discriminatory to request information relating to acts of abuse or an applicant’s or insured’s abuse status, or to make use of that information, however obtained, except for the limited purposes of complying with legal obligations or verifying a person’s claim to be a subject of abuse.

(g) Subsection (e) does not preclude a subject of abuse from obtaining his or her insurance records.

(h) Subsection (f) above does not prohibit a property and casualty insurer from asking an applicant or insured about a property and casualty claim, even if the claim is abuse-related, or from using information thereby obtained in evaluating and carrying out its rights and duties under the policy, to the extent otherwise permitted under this chapter and other applicable law.