To require life and disability insurers to disclose an insurance applicant's medical test results to the applicant, unless the applicant specifically declines to receive the results, and otherwise to restrict the disclosure of such results by such insurers.

SECTION 1. REQUIREMENT TO DISCLOSE TO INSURANCE APPLICANTS CERTAIN 
              MEDICAL TEST RESULTS.

    (a) In General.--Except as provided in subsections (c) and (d), a 
life or disability insurer who requires, as a condition for the sale of 
a covered insurance product, that an applicant for the purchase of the 
product submit to an examination or test by a physician, health 
professional, or medical laboratory--
            (1) shall require the physician, health professional, or 
        laboratory to provide the results to the insurer in the form of 
        a written report containing the findings of the physician, 
        professional, or laboratory, including the results of all 
        tests, diagnoses, and conclusions made; and
            (2) shall mail, not later than 30 days after the date on 
        which the insurer receives such report, the report to the 
        applicant at an address provided for this purpose by the 
        applicant.
    (b) Abnormal Finding.--In any case in which a life or disability 
insurer mails a report to an applicant under subsection (a) that 
contains a finding of abnormality or irregularity with respect to the 
health or condition of the applicant, the insurer shall include with 
the report a document that--
            (1) highlights the abnormal or irregular finding in 
        language that is understandable to a person of average 
        intelligence with no medical training; and
            (2) advises the applicant to consult with a suitable health 
        professional for further explanation and appropriate follow-up.
    (c) Election To Receive Results through Physician.--An applicant 
described in subsection (a) may elect to have the report described in 
such subsection, and the document described in subsection (b), mailed 
to a physician of the applicant's choice designated by the applicant 
for such purpose, in lieu of having the report and document mailed to 
the applicant. The election shall be effective in any case where the 
applicant, before the date of the examination or test, submits to the 
insurer an election form described in subsection (e)(1) that includes--
            (1) a check-off box, marked by hand by the applicant, 
        showing the applicant's election to have the report and 
        document mailed to such physician;
            (2) the applicant's signature; and
            (3) the date on which the form was completed by the 
        applicant.
    (d) Waiver by Applicant.--Subsections (a) and (b) shall not apply 
where the applicant, before the date of the examination or test, 
declines to receive the results by submitting to the insurer a waiver 
form described in subsection (e)(1) that includes--
            (1) a check-off box, marked by hand by the applicant, 
        showing the applicant's choice to waive the applicant's right 
        to receive any reports under subsection (a);
            (2) the applicant's signature; and
            (3) the date on which the form was completed by the 
        applicant.
    (e) Requirements Relating to Forms.--
            (1) Requirement to supply forms.--A life or disability 
        insurer described in subsection (a) shall furnish to an 
        applicant described in such subsection an election form, 
        sufficient for purposes of subsection (c), and a waiver form, 
        sufficient for purposes of subsection (d), at the same time the 
        insurer furnishes to the applicant the application for sale of 
        the covered product. The forms shall be distinct from, and not 
        a part of, such application.
            (2) Copy.--A life or disability insurer described in 
        subsection (a) shall furnish to an applicant described in such 
        subsection a copy of an election form or a waiver form 
        submitted to the insurer by the applicant upon the insurer's 
        receipt of the form.
            (3) Revocation.--An election under subsection (c), or a 
        waiver under subsection (d), may be revoked by the applicant at 
        any time, through a written or oral notification to the life or 
        disability insurer.

SEC. 2. PROHIBITION ON CERTAIN DISCLOSURES OF EXAMINATION RESULTS.

    A life or disability insurer who requires, as a condition for the 
sale of a covered insurance product, that an applicant for the purchase 
of the product submit to an examination or test by a physician, health 
professional, or medical laboratory may not disclose to any other 
person, in any form, the results of such examination or test, except--
            (1) as provided in section 1;
            (2) pursuant to a valid and fully executed written 
        authorization for such disclosure--
                    (A) during the period specified by the 
                authorization, in the case of an authorization that 
                permits the disclosure to be made only during a period 
                that is shorter than the 2-year period beginning on the 
                date the authorization is executed by the applicant; or
                    (B) during 2-year period beginning on the date the 
                authorization is executed by the applicant, in the case 
                of any other authorization;
            (3) pursuant to a court order, subpoena, warrant, or search 
        warrant, for use by a law enforcement agency in an official law 
        enforcement investigation or proceeding inquiring into a 
        violation of any civil or criminal law, and where such 
        disclosure is expressly required by an applicable law other 
        than this Act;
            (4) where the disclosure is made to a public health 
        authority and is expressly required by an applicable law other 
        than this Act.

SEC. 3. CIVIL ACTION BY AGGRIEVED PERSON.

    (a) In General.--Any person who is aggrieved by a violation of this 
Act by a life or disability insurer may commence a civil action against 
the insurer in an appropriate State court or district court of the 
United States.
    (b) Relief.--
            (1) In general.--In an action under this section, if the 
        court finds that the defendant has failed to comply with this 
        Act, the aggrieved person may recover--
                    (A) statutory damages in an amount equal to $10,000 
                for each such violation;
                    (B) compensatory damages; and
                    (C) punitive damages.
            (2) Attorney's fees.--In an action under this section, the 
        court, in its discretion, may allow a prevailing plaintiff, 
        other than the United States, a reasonable attorney's fee 
        (including expert fee) as part of the costs, and the United 
        States shall be liable for costs the same as a private person.

SEC. 4. INAPPLICABILITY OF MCCARRAN-FERGUSON ACT.

    For purposes of section 2(b) of the Act of March 9, 1945 (15 U.S.C. 
1012(b); commonly known as the McCarran-Ferguson Act), this Act shall 
be considered to specifically relate to the business of insurance.

SEC. 5. REGULATIONS.

    The Secretary of Health and Human Services may issue regulations to 
carry out this Act.

SEC. 6. DEFINITIONS.

    As used in this Act:
            (1) Applicant.--The term ``applicant'' means an individual 
        whose death or disability will be, or is, the subject of a 
        covered insurance product, upon the acceptance by the life or 
        disability insurer selling the product of the application for 
        the purchase of the product.
            (2) Covered insurance product.--The term ``covered 
        insurance product'' means--
                    (A) a life insurance policy or contract, or 
                benefits under such a policy or contract; or
                    (B) a disability insurance policy or contract, or 
                benefits under such a policy or contract.
            (3) Disclose.--The term ``disclose'', means to release, 
        transfer, provide access to, or otherwise divulge the 
        information to any person other than an individual who is the 
        subject of the information. Such term includes the placement of 
        information into a computerized data base, networked computer 
        system, or any other electronic or magnetic data system, that 
        more than one person may access by any means.
            (4) Life or disability insurer.--The term ``life or 
        disability insurer'' means--
                    (A) a person doing business in interstate commerce 
                who is licensed or certified by a State to provide a 
                covered insurance product; or
                    (B) a person who acts as an agent of a person 
                described in subparagraph (A) with respect to the sale 
                of a covered insurance product.

SEC. 7. EFFECTIVE DATE.

    This Act shall take effect on July 1, 1998.

Summary: Requires that a life or disability insurer, if the insurer requires an applicant for life or disability insurance to submit to a medical examination or test, ensure disclosure to the applicant of the test results. Prohibits the insurer from disclosing the results to any other person, except under a written authorization made by the applicant, pursuant to certain legal process, or to a public health authority when expressly required by law. Provides for civil actions for violations of this Act by any aggrieved person, allowing recovery of statutory, compensatory, and punitive damages and attorney's fees. Declares that, for provisions of Federal law commonly known as the McCarran-Ferguson Act prohibiting Federal insurance law from preempting State law unless the Federal law specifically relates to the business of insurance, this Act shall be considered to specifically relate to the business of insurance.