805
November 16, 1999
The Honorable Joseph I. Lieberman
United States Senate
Washington, D.C. 20510-0703
Dear Senator Lieberman:
This is in response to your inquiry on behalf of your
constituent, xxx xxxxxxx xxxxxx of Groton, Connecticut.
xxx xxxxxx has requested information on the application of the
Americans with Disabilities Act of 1990 (ADA) to the insurance
industry.
xxx xxxxxx wrote that he has been denied an insurance policy
to pay off the mortgage on his house in the event that he dies
before the mortgage is paid off, because he has a congenital
heart defect.
Title III of the ADA prohibits discrimination on the basis
of disability by places of public accommodation, including
service establishments such as insurance companies. Because of
the nature of the insurance business, however, consideration of
disability in the sale of insurance contracts does not always
constitute unlawful "discrimination." An insurer or other public
accommodation may underwrite, classify, or administer risks that
are based on or not inconsistent with state law, provided that
such practices are not used as a subterfuge to evade the purposes
of the ADA.
With respect to the purchase of insurance, the ADA allows
insurance companies to refuse to insure someone with a disability
only if the refusal to provide coverage is based on sound
actuarial principles, or actual or reasonably anticipated
experience. The ADA, therefore, does not prohibit the use of
legitimate actuarial considerations to justify differential
treatment of individuals with disabilities in insurance.
Enclosed for your information is a copy of the Department of
Justice's Technical Assistance Manual for title III of the ADA.
It discusses the definition of disability on pages 9 to 13, and
the requirements applicable to insurance companies on pages 19 to
20.
I hope that this information is useful to you in responding
to your constituent. Please do not hesitate to contact the
Department if we can be of assistance in other matters.
Sincerely,
Bill Lann Lee
Acting Assistant
Attorney General
Civil Rights Division
Enclosure
Updated 2008-07-25