On March 26, 2008, New Jersey Governor, Jon Corzine, signed into law Assembly Bill 1586, sponsored by Assemblyman Neil Cohen. The new legislation prohibits unfair discrimination by life insurance companies against individuals based on their travel plans by expanding the definition of unfair discrimination to include “failing to issue, extend, or renew a life insurance policy, or fixing the rates, terms, or conditions of the policy based on an individual’s intent to travel abroad, unless the decision is based on sound actuarial principles.” New Jersey enacted this law in response to an increasing number of situations in which life insurance companies were using a customer’s travel history or plans (e.g. to places such as Israel) as the basis for denying insurance applications or increasing premiums on existing coverage.
The law is effective immediately. A number of other states, including Connecticut and California, have similar laws.
