The state senate moves to limit the power of insurance companies to refuse coverage to people who have been someplace…or are going someplace.
The problem arose a few years ago when some people headed to Israel found out they could not get life insurance or would have to pay much higher rates. Senator Scott Rupp of Wentzville says some of those decisions have been arbitray, not based on the actual dangers to the traveler.
Rupp wants to ban refusals to provide coverage, or demands that policy holders pay substantially higher premiums, unless insruance companies have specific figures showing those areas are a greater risk. He says the state department’s warning or restricted list is not a valid gauge. "Sometimes some of the places put on this list are not due to harm. It is more dut eo political pressure…There really is no data that shows that if someone goes to that country there is a likelihood of death," he tells fellow Senators..
His bill says an insurance company is involved in unfair trade practices if it denies coverage or demands higher payments without actuarial studies that justify those actions.
The Senate passed the bill last year but it ran out of time in the House. It will get to the House earlier this year.