mitting to the insurer a waiver form described in sub-
section (e)(1) that includes—
(1) a check-off box, marked by hand by the ap-
plicant, showing the applicant’s choice to waive the
applicant’s right to receive any reports under sub-
section (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 sub-
section (c), and a waiver form, sufficient for pur-
poses 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 de-
scribed in such subsection a copy of an election form
or a waiver form submitted to the insurer by the ap-
plicant upon the insurer’s receipt of the form.
(3) REVOCATION.—An election under sub-
section (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 in-
surer.
SEC. 2. PROHIBITION ON CERTAIN DISCLOSURES OF EXAM-
INATION RESULTS.
A life or disability insurer who requires, as a condi-
tion 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, ex-
cept—
(1) as provided in section 1;
(2) pursuant to a valid and fully executed writ-
ten authorization for such disclosure—
(A) during the period specified by the au-
thorization, 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 exe-
cuted by the applicant; or
(B) during 2-year period beginning on the
date the authorization is executed by the appli-
cant, in the case of any other authorization;
(3) pursuant to a court order, subpoena, war-
rant, or search warrant, for use by a law enforce-
ment agency in an official law enforcement inves-
tigation 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 ap-
plicable 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 appro-
priate State court or district court of the United States.
(b) RELIEF.—
(1) IN GENERAL.—In an action under this sec-
tion, 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 lia-
ble 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 con-
tract, or benefits under such a policy or con-
tract.
(3) DISCLOSE.—The term ‘‘disclose’’, means to
release, transfer, provide access to, or otherwise di-
vulge 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 sys-
tem, 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 re-
spect to the sale of a covered insurance product.
SEC. 7. EFFECTIVE DATE.
This Act shall take effect on July 1, 1998.
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