Code On A.i.d.s. For Insurers (Press, 21 March 1989)

On 21 March 1989, the Life Officers’ Association of New Zealand issued a new code of practice for life insurance companies concerning the handling of H.I.V. test results and the implications for policy decision-making in light of the growing concern about A.LD.S. The association urged its members to maintain strict confidentiality regarding H.I.V. test results and to avoid making policy decisions based on an individual’s sexual orientation. Instead, the focus should be on the specific at-risk activities undertaken by individuals. The chief executive officer of the association, Mr Boyd Klap, highlighted the need for a delicate balance between commercial interests and sensitivity to the subject of A.LD.S. He noted that this is the first time a life-threatening illness has prompted such a dedicated code of practice in the insurance industry. In New Zealand, claims related to A.LD.S. deaths had already reached a total of $500,000, reflecting the seriousness of the issue. The statistics provided by Mr Brian Sivell, the New Zealand manager of Mercantile and General Reinsurance Ltd, indicated that the number of A.LD.S. deaths could surpass road-related fatalities in the country by 1993. As of February 1989, there were 115 reported cases of full-blown A.LD.S. in New Zealand, resulting in 50 deaths. These figures were compared to Australia, which reported 1,239 cases and 591 deaths, while the United States had recorded 84,985 cases with 48,582 deaths. However, Sivell suggested that advancements in prevention and treatment could lead to fewer fatalities than anticipated. According to the new code, insurance companies are required to inquire whether applicants are H.I.V. positive and whether they engage in activities that pose a significant risk for acquiring the virus. Insurers have the option to mandate H.I.V. testing for applicants seeking coverage above certain thresholds, typically set at $250,000 or $300,000. Even if coverage is below these amounts, a test can be requested based on reasonable assumptions about the applicant’s risk exposure derived from their personal statements or related questionnaires. The code stipulates that all positive H.I.V. test results must be securely filed separately and should be overseen by a company medical officer or a senior underwriter. Applicants may need to disclose whether they have engaged in high-risk behaviours since 1980, including sexual encounters with prostitutes, male-to-male anal sex, or the use of non-prescribed injected drugs. Additionally, the code prohibits insurance companies from making adverse decisions solely based on an applicant's known or suspected sexual orientation, or previous discussions about H.I.V. testing, particularly when results are negative or unknown. A pamphlet is to be distributed to clients explaining how questions regarding A.LD.S. are part of the process that differentiates among risk levels to protect the funds of policyholders.

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