Several southern states narrowly focus on sickle cell trait to define the scope of their laws on insurance discrimination based upon genetic information. In contrast, more recent state statutes which regulate the use of genetic information in insurance define genetic information without regard to a specific disease or genetic trait. While the foregoing definitions are less narrowly drawn in terms of a specific genetic trait, these controlling definitions still confine themselves to sources or types of information which are restrictive. Usually, the process involves a clinical laboratory test. Often, these types of definitions require that the test must be performed on human DNA material.
Pure laboratory based genetic testing is technologically complex and expensive.
On balance, most state statutes that regulate the use of genetic information in insurance rely on definitions with three characteristics. Once state statutes on the use of genetic information in insurance establish the scope and type of genetic information to be regulated, they impose prohibitions on how insurers may or may not use the genetic information. These prohibitions are aimed at underwriting practices, policy issuance practices and differential rating practices. Prohibitions in current law will illustrate the range of practices that are regulated by current laws. California law prohibits discrimination in policy terms, discrimination in fees to brokers, refusal to accept an application, failure or refusal to issue an application, cancellation of a policy or charging a higher premium based on genetic characteristics.