To establish minimum standards relating to a factor for life insurance eligibility and rates, and for other purposes.

Summary: Life Insurance Fairness for Travelers Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to make it unlawful for any insurer to: (1) deny any person life insurance, or to otherwise discriminate in the issuance, cancellation, amount of coverage, or conditions of life insurance, based upon the person's intent to engage in future lawful foreign travel; and (2) charge rates for life insurance which are excessive or unfairly discriminatory in relation to the actuarial risk associated with future lawful foreign travel of such person.

Provides for administrative enforcement of this Act by either: (1) the chief law enforcement officer of a state, or an official or agency designated by a state; or (2) the Secretary of the Treasury.

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Life Insurance Fairness for 
Travelers Act of 2005''.

SEC. 2. AMENDMENTS TO TRIA.

     The Terrorism Risk Insurance Act of 2002 (Public Law 107-297; 116 
Stat. 2322) is amended by adding at the end the following new title:

           ``TITLE IV--FAIRNESS FOR LIFE INSURANCE PURCHASERS

``SEC. 401. CONGRESSIONAL FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that--
            ``(1) life insurance companies are increasingly using the 
        future plans of Americans to engage in lawful foreign travel as 
        a reason to either deny persons life insurance or to charge 
        premiums that are not commensurate with the risk of such 
        travel; and
            ``(2) that such denials of insurance and disproportionate 
        premiums may deter Americans from purchasing insurance that 
        they and their families may need.
    ``(b) Purpose.--The purpose of this title is to establish uniform 
rules relating to the use of foreign travel as a factor in setting life 
insurance eligibility and rating.

``SEC. 402. PROHIBITION AGAINST DISCRIMINATION IN LIFE INSURANCE 
              POLICIES BASED ON FUTURE FOREIGN TRAVEL PLANS.

    ``(a) In General.--It shall be unlawful for any insurer to deny any 
person life insurance, or to otherwise discriminate in the issuance, 
cancellation, amount of coverage, or conditions of life insurance, 
based upon the intent of such person to engage in future lawful foreign 
travel.
    ``(b) Insurance Rates.--It shall be unlawful for any insurer to 
charge rates for life insurance which are excessive or unfairly 
discriminatory in relation to the actuarial risk associated with future 
lawful foreign travel of such person.

``SEC. 403. ADMINISTRATIVE ENFORCEMENT.

    ``(a) State Enforcement.--In addition to such other remedies as are 
provided under State law, the chief law enforcement officer of a State, 
or an official or agency designated by a State, may bring an action to 
enjoin any person who has violated or is violating this title.
    ``(b) Enforcement by the Secretary.--The Secretary shall enforce 
this Act in any State that the Secretary determines does not have a 
comparable State law or a law that the Secretary has determined is not 
inconsistent under section 405.

``SEC. 404. EFFECT ON STATE LAWS.

    ``(a) In General.--This title does not annul, alter, or affect, or 
exempt any insurer subject to the provisions of this title from 
complying with the laws of any State with respect to the use of 
prospective lawful foreign travel for the purposes of underwriting or 
rating life insurance except to the extent that such laws are 
inconsistent with any provision of this title and then only to the 
extent of the inconsistency. The Secretary is authorized to determine 
whether such inconsistencies exist. The Secretary may not determine 
that any State law is inconsistent with any provision of this title if 
the Secretary determines that such law gives greater protection to the 
insured.
    ``(b) State Exemptions.--The Secretary shall, by regulation, exempt 
from the requirements of this title any class of insurance transactions 
within any State if the Secretary determines that under the law of that 
State that class of transaction is subject to requirements 
substantially similar to those imposed under this title or that such 
law gives greater protection to the consumer, and that there is 
adequate provision for enforcement.

``SEC. 405. DEFINITIONS.

    ``In this title, the following definitions shall apply:
            ``(1) Insurer.--The term `insurer' means any entity, 
        including any affiliate thereof, that is licensed or admitted 
        to engage in the business of providing life insurance in any 
        State.
            ``(2) Insured.--The term `insured' means any natural person 
        who purchases, or attempts to purchase, life insurance.
            ``(3) Life insurance.--
                    ``(A) In general.--The term `life insurance' means 
                insurance for which the probabilities of the duration 
                of human life or the rate of mortality are an element 
                or condition of insurance.
                    ``(B) Included insurance.--Such term includes the 
                granting of--
                            ``(i) endowment benefits;
                            ``(ii) additional benefits in the event of 
                        death by accident or accidental means;
                            ``(iii) disability income benefits;
                            ``(iv) additional disability benefits that 
                        operate to safeguard the contract from lapse or 
                        to provide a special surrender value, or 
                        special benefit in the event of total and 
                        permanent disability;
                            ``(v) benefits that provide payment or 
                        reimbursement for long-term home health care, 
                        or long-term care in a nursing home or other 
                        related facility;
                            ``(vi) burial insurance; and
                            ``(vii) optional modes of settlement of 
                        proceeds of life insurance.
                    ``(C) Exclusions.--Such term does not include 
                property and casualty insurance, health insurance or 
                workers compensation insurance.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.

``SEC. 406. REGULATIONS.

    `` The Secretary shall issue regulations to carry out the purposes 
of this title.

``SEC. 407. APPLICABILITY.

    ``This title shall apply to any policy for life insurance coverage 
issued, renewed, altered, or modified or canceled after the expiration 
of the 6-month period beginning on the date of the enactment of the 
Life Insurance Fairness for Travelers Act of 2005.''.

SEC. 3. TIMING OF REGULATIONS.

    The Secretary of the Treasury shall issue the regulations required 
by section 406 of the Terrorism Risk Insurance Act of 2002, as added by 
section 2 of this Act, not later than the expiration of the 6-month 
period beginning on the date of the enactment of this Act.

SEC. 4. TECHNICAL AMENDMENT.

     The table of contents in section 1(b) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the 
end the following new items:

           ``TITLE IV--FAIRNESS FOR LIFE INSURANCE PURCHASERS

``Sec. 401. Congressional findings and purposes.
``Sec. 402. Prohibition against discrimination in life insurance 
                            policies based on future foreign travel 
                            plans.
``Sec. 403. Administrative enforcement.
``Sec. 404. Effect on State laws.
``Sec. 405. Definitions.
``Sec. 406. Regulations.
``Sec. 407. Applicability.''.