DFS Issues Guidance to Insurers Regarding Underwriting for Opioid-Reversal Drugs
September 9th, 2019
The Department of Financial Services (DFS) issued guidance to insurers regarding underwriting in life insurance, disability income insurance, and long-term care insurance for opioid-reversal drugs such as naloxone. According to the guidance letter, DFS initiated an investigation following reports that insurers were denying applications for insurance based on an applicant having been issued a prescription for an opioid-reversal drug. After completion of their investigation, DFS concluded the following:
- An insurer may not deny applications for life insurance, disability income insurance, and long-term care insurance solely based on the applicant having been issued a prescription for an opioid-reversal drug such as naloxone. This practice violates Insurance Law § 4224.
- Any insurer that has improperly denied an applicant for life insurance, disability income insurance, and long-term care insurance based on the applicant having been issued a prescription for an opioid-reversal drug should immediately reach out to provide the applicant the opportunity to re-apply for coverage based on an underwriting assessment that complies with the New York Insurance Law.
- Any record or report made to a third-party consumer reporting agency of an insurance denial based on an improper underwriting assessment due to an applicant having been issued a prescription for an opioid-reversal drug should be corrected or removed.
DFS Superintendent Linda Lacewell said:
“Denying life insurance for medical professionals solely based on carrying a prescription for an opioid-reversal drug such as naloxone is a violation of New York insurance law. To deny benefits to our first responders is counterproductive to everything we do. This guidance not only protects our nurses, firefighters, police officers, emergency medical technicians, paramedics and overdose victims – it also safeguards the families and loved ones of pre-hospital caregivers and provides peace of mind through access to insurance.”