But they may vary terms and conditions, or not grant a policy at all, if the results show an insurance risk. The law has long recognised that, to protect them from fraud, insurance companies need any relevant health information an applicant has. Companies are entitled to know as much as possible about the risk they're insuring. Depending on the circumstances of the case, issues of genetic discrimination would usually fall within the jurisdiction of the Federal Disability Discrimination Act. So, if someone has a genetic condition that's linked to a particular illness, disease or death, insurers can treat that person differently.
Insurers can deny cover or charge higher premiums - provided they can produce data.
This is only one aspect of the maze of issues surrounding genetic testing and insurance. Senator Stott Despoja introduced a Federal Bill, The Genetic Privacy and Non-discrimination Bill, to address these issues in March 1998. It's heavily based on US legislation designed to ensure an individual's genetic information can't be used against them, nor disclosed without their permission. The bill has been adjourned for debate several times and its status is unclear. It prohibits discrimination on the basis of genetic information.