I 
109TH CONGRESS 
1ST SESSION H. R. 3639
To establish minimum standards relating to a factor for life insurance 
eligibility and rates, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2005
Ms. WASSERMAN SCHULTZ (for herself, Ms. ROS-LEHTINEN, Mr. FRANK of 
Massachusetts, Mr. BACHUS, Mr. WEXLER, Mr. CROWLEY, Mr. ISRAEL, 
Ms. BEAN, Mrs. LOWEY, Mr. FILNER, Mr. MILLER of Florida, Ms. 
SCHAKOWSKY, Mr. FITZPATRICK of Pennsylvania, Mr. CLEAVER, Ms. 
BERKLEY, Mr. BERMAN, Mr. WAXMAN, Mr. HASTINGS of Florida, Mr. 
DAVIS of Alabama, Mrs. MALONEY, Mr. PRICE of Georgia, and Ms. 
HERSETH) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To establish minimum standards relating to a factor for 
life insurance eligibility and rates, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Life Insurance Fair-
ness 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 per-
sons life insurance or to charge premiums that are 
not commensurate with the risk of such travel; and 
‘‘(2) that such denials of insurance and dis-
proportionate premiums may deter Americans from 
purchasing insurance that they and their families 
may need. 
‘‘(b) PURPOSE.—The purpose of this title is to estab-
lish 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 in-
surer to deny any person life insurance, or to otherwise 
discriminate in the issuance, cancellation, amount of cov-
erage, or conditions of life insurance, based upon the in-
tent of such person to engage in future lawful foreign trav-
el. 
‘‘(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 actu-
arial 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 Sec-
retary shall enforce this Act in any State that the Sec-
retary determines does not have a comparable State law 
or a law that the Secretary has determined is not incon-
sistent 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 deter-
mine 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 Sec-
retary determines that under the law of that State that 
class of transaction is subject to requirements substan-
tially 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 pur-
chase, life insurance. 
‘‘(3) LIFE INSURANCE.—
‘‘(A) IN GENERAL.—The term ‘life insur-
ance’ means insurance for which the prob-
abilities 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 regula-
tions required by section 406 of the Terrorism Risk Insur-
ance 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.’’.
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