Class Action Lawsuit Claims Banner Life Insurance Company Illegally Requests Genetic Info Via Family Medical Histories

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A proposed class action lawsuit alleges Banner Life Insurance Company has violated an Illinois privacy law by requesting genetic information in the form of family medical histories to assess eligibility for life insurance coverage.

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The 12-page case alleges Banner Life Insurance Company has run afoul of the Illinois Genetic Information Privacy Act (GIPA), a law that prohibits insurers from using protected genetic health information for underwriting purposes, including for the assessment of a person’s eligibility for coverage. 

The lawsuit relays that Banner, as part of its underwriting process, requires prospective customers to undergo a physical examination that includes the collection of information concerning the manifestation of diseases in family members, and then uses that data to assess their eligibility for coverage.

Per the case, the GIPA parameters for genetic information include details pertaining to a person’s genetic tests, the genetic tests of the person’s family members, the “manifestation of a disease or disorder in family members” of the individual, or any request for, or receipt of, genetic services by the individual or any of their family members.

“In requiring prospective customers, such as Plaintiff, to disclose their family medical histories, Defendant has violated Plaintiffs’ and other putative Class members’ statutory right to genetic privacy,” the lawsuit summarizes.

According to the lawsuit, the GIPA stipulates that an insurer may not use genetic information for underwriting purposes—specifically for:

• Determining the rules for eligibility for benefits, determining whether someone is eligible for benefits, or determining the benefits under the plan, coverage, or policy;
• The calculation of premium or contribution amounts under the plan, coverage or policy;
• The application of any pre-existing condition exclusion under the plan, coverage or policy; and
• Other activities related to the creation, renewal or replacement of a contract of health insurance or health benefits.

The lawsuit looks to cover all individuals who applied for insurance coverage with Banner Life Insurance Company in Illinois and from whom the company, or an agent acting on its behalf, requested and/or obtained family medical history or other genetic information within the applicable statute of limitations period.

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