AB1798 - Genetic testing for life and disability insurance.

Amended IN Senate August 21, 2026 Amended IN Senate August 13, 2026 Amended IN Assembly April 16, 2026 Amended IN Assembly April 08, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1798 Introduced by Assembly Member Wilson (Coauthors: Assembly Members Bauer-Kahan and McKinnor) February 10, 2026 An act to amend Sections 791.06, 791.07, 791.11, 791.12, 10146, 10147, 10148, 10149, and 10149.1 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 1798, as amended, Wilson. Genetic testing for life and disability insurance. Existing law generally regulates classes of insurance, including life and disability insurance. Existing law prohibits an insurer from requiring a test for the presence of a genetic characteristic for the purpose of determining insurability, except as specified. If an insurer requests an applicant to take a genetic characteristic test, existing law requires the insurer to obtain the applicant’s written informed consent and to notify the applicant of the test result. Existing law prohibits a life or disability income insurer from requiring a genetic characteristic test if the results of the test would be used to determine eligibility for specified health care coverage. Existing law prescribes civil penalties for an insurer who discloses the results of a test for a genetic characteristic requested by the insurer. This bill would repeal those provisions and would instead prohibit a life or disability insurer from canceling, limiting, or denying coverage, among other actions, based on a test for the presence or absence of a genetic characteristic. The bill would authorize a life or disability insurer to base an underwriting decision on a test for the presence or absence of a genetic characteristic if specified criteria are met. The bill would, except as provided, prohibit a life or disability insurer from requiring, requesting, or soliciting genetic information, using genetic test results, or considering a person’s decisions or actions relating to genetic testing in any manner for an insurance purpose. The bill would additionally impose civil penalties for the use of genetic information or genetic characteristics in a manner inconsistent with these provisions, as specified, and other civil penalties for any violation of these provisions. The bill would also prohibit the use or disclosure of an individual’s full genome. Existing law, the Insurance Information and Privacy Protection Act, prohibits an insurance institution, agent, or insurance-support organization from seeking specified information in connection with an insurance transaction or preparing or requesting an investigative consumer report about an individual for an insurance application, except as specified. Existing law prohibits an insurance institution or agent from basing an adverse underwriting decision on specified information. Existing law prohibits an insurance institution, agent, or insurance-support organization from utilizing a form or statement that authorizes disclosure of personal or privileged information as its disclosure form, unless the form or statement meets specified criteria. This bill would prohibit an insurance institution, agent, or insurance-support organization from seeking information in connection with an insurance transaction concerning, or prohibit an insurance institution or agent from basing an adverse underwriting decision on, an individual’s genetic information or full genome, unless specified criteria are met. The bill would prohibit an insurance institution, agent, or insurance-support organization from preparing or requesting an investigative consumer report that seeks an individual’s genetic information or full genome. This bill would state the intent of the Legislature that, notwithstanding any other law, these provisions shall not be interpreted to authorize the use or disclosure of an individual’s full genome. This bill would incorporate additional changes to Sections 791.07, 791.11, and 791.12 of the Insurance Code proposed by SB 354 to be operative only if this bill and SB 354 are enacted and this bill is enacted last. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Notwithstanding any other law, it is the intent of the Legislature that the changes made by this act shall not be interpreted to authorize the use or disclosure of an individual’s full genome. SEC. 2. Section 791.06 of the Insurance Code is amended to read: 791.06. (a) Notwithstanding any other law, an insurance institution, agent, or insurance-support organization shall not utilize as its disclosure authorization form in connection with insurance transactions a form or statement that authorizes the disclosure of personal or privileged information about an individual to the insurance institution, agent, or insurance-support organization unless the form or statement meets all of the following criteria: (1) Is written in plain language. (2) Is dated. (3) Specifies the types of persons authorized to disclose information about the individual. (4) Specifies the nature of the information authorized to be disclosed. (5) Names the insurance institution or agent and identifies by generic reference representatives of the insurance institution to whom the individual is authorizing information to be disclosed. (6) Specifies the purposes for which the information is collected. (7) Specifies the length of time the authorization shall remain valid, which shall be no longer than: (A) One of the following for authorizations signed for the purpose of collecting information in connection with an application for an insurance policy, a policy reinstatement or a request for change in policy benefits: (i) Thirty months from the date the authorization is signed if the application or request involves life, health, or disability insurance. (ii) One year from the date the authorization is signed if the application or request involves property or casualty insurance. (B) One of the following for authorizations signed for the purpose of collecting information in connection with a claim for benefits under an insurance policy: (i) The term of coverage of the policy if the claim is for a health insurance benefit. (ii) The duration of the claim if the claim is not for a health insurance benefit. (iii) The duration of all claims processing activity performed in connection with all claims for benefits made by any person entitled to benefits under a nonprofit hospital service contract. (8) Advises the individual or a person authorized to act on behalf of the individual that the individual or the individual’s authorized representative is entitled to receive a copy of the authorization form. (b) This section does not require any authorization for the receipt of personal or privileged information about an individual. SEC. 3. Section 791.07 of the Insurance Code is amended to read: 791.07. (a) An insurance institution, agent, or insurance-support organization shall not prepare or request an investigative consumer report about an individual in connection with an insurance transaction involving an application for insurance, a policy renewal, a policy reinstatement, or a change in insurance benefits, unless the insurance institution or agent informs the individual of the following: (1) That the individual may request to be interviewed in connection with the preparation of the investigative consumer report. (2) That upon a request pursuant to Section 791.08, the individual is entitled to receive a copy of the investigative consumer report. (b) If an investigative consumer report is to be prepared by an insurance institution or agent, the insurance institution or agent shall institute reasonable procedures to conduct a personal interview requested by an individual. (c) If an investigative consumer report is to be prepared by an insurance-support organization, the insurance institution or agent desiring the report shall inform the insurance-support organization if a personal interview has been requested by the individual. The insurance-support organization shall institute reasonable procedures to conduct an interview, if requested. (d) An insurance institution, agent, or insurance-support organization shall not prepare or request an investigative consumer report that seeks an individual’s genetic information or full genome. SEC. 3.5. Section 791.07 is added to the Insurance Code, to read: 791.07. (a) A licensee, surplus line insurer, reinsurer, or third-party service provider shall not prepare or request an investigative consumer report about a consumer in connection with an insurance transaction involving an application for insurance, a policy renewal, a policy reinstatement, or a change in insurance benefits, unless the licensee, surplus line insurer, reinsurer, or third-party service provider informs the consumer of both of the following in writing before the report preparation: (1) That the individual may request to be interviewed in connection with the preparation of the investigative consumer report, and the licensee, surplus line insurer, reinsurer, or third-party service provider shall conduct the interview. (2) That upon a request pursuant to Section 791.08, the individual is entitled to receive a copy of the investigative consumer report. (b) If an investigative consumer report is to be prepared by a licensee, surplus line insurer, or reinsurer, the licensee, surplus line insurer, or reinsurer shall institute reasonable procedures to conduct a personal interview requested by a consumer. (c) If an investigative consumer report is to be prepared by a third-party service provider, the licensee, surplus line insurer, or reinsurer shall notify the third-party service provider in writing if a personal interview has been requested by the consumer. The third-party service provider shall conduct the interview requested. (d) If a licensee, surplus line insurer, or reinsurer uses a third-party service provider to obtain or prepare an investigative consumer report, the written contract between the licensee, surplus line insurer, or reinsurer and the third-party service provider shall require the third-party service provider to do both of the following: (1) Comply with the requirements of this section. (2) Not process or share personal information provided to the third-party service provider by the licensee, surplus line insurer, or reinsurer or obtained by the third-party service provider in its investigation of the consumer other than to fulfill the purpose of the contract with the licensee, surplus line insurer, or reinsurer. (e) A licensee, surplus line insurer, reinsurer, or third-party service provider that prepares or requests an investigative consumer report in connection with an insurance claim shall notify the consumer that the consumer may request to be interviewed in connection with the preparation of the investigative consumer report. The licensee, surplus line insurer, reinsurer, or third-party service provider is not required to provide a copy of an investigative report prepared in connection with an insurance claim, and that contains privileged information, unless compelled to do so by a state or federal court. (f) A licensee, surplus line insurer, reinsurer, or third-party service provider shall not prepare or request an investigative consumer report that seeks an individual’s genetic information or full genome. SEC. 4. Section 791.11 of the Insurance Code is amended to read: 791.11. An insurance institution, agent, or insurance-support organization shall not seek information in connection with an insurance transaction concerning any of the following: (a) Any previous adverse underwriting decision experienced by an individual, unless the inquiry also requests the reasons for the previous adverse underwriting decision. (b) Any previous insurance coverage obtained by an individual through a residual market mechanism, unless the inquiry also requests the reasons why insurance coverage was previously obtained through a residual market mechanism. (c) An individual’s genetic information or full genome, except, unless prohibited by law, an insurance institution, agent, or insurance-support organization may seek genetic information in connection with an insurance transaction if all of the following are true: (1) The genetic information is included in the medical record of the individual, and is not sought from any other source or record. (2) The genetic information is not derived from a direct-to-consumer test. (3) The genetic information is for the purpose of ruling out an adverse finding based on the individual’s medical record and the individual has provided informed, written consent for the release, disclosure, and use of the genetic test results or has provided the genetic test results to the insurer. SEC. 4.5. Section 791.11 is added to the Insurance Code, to read: 791.11. A licensee, surplus line insurer, reinsurer, or insurance-support organization shall not seek information in connection with an insurance transaction concerning any of the following: (a) A previous adverse underwriting decision experienced by an individual unless the inquiry also requests the reasons for the previous adverse underwriting decision. (b) Any insurance coverage obtained by a consumer through a residual market mechanism, unless the inquiry also requests the reasons for a previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism. (c) An individual’s genetic information or full genome, except, unless prohibited by law, an insurance institution, agent, or insurance-support organization may seek genetic information in connection with an insurance transaction if all of the following are true: (1) The genetic information is included in the medical record of the individual, and is not sought from any other source or record. (2) The genetic information is not derived from a direct-to-consumer test. (3) The genetic information is for the purpose of ruling out an adverse finding based on the individual’s medical record and the individual has provided informed, written consent for the release, disclosure, and use of the genetic test results or has provided the genetic test results to the insurer. SEC. 5. Section 791.12 of the Insurance Code is amended to read: 791.12. An insurance institution or agent shall not base an adverse underwriting decision in whole or in part on the following: (a) On the fact of a previous adverse underwriting decision or on the fact that an individual previously obtained insurance coverage through a residual market mechanism. However, an insurance institution or agent may base an adverse underwriting decision on further information obtained from an insurance institution or agent responsible for a previous adverse underwriting decision. [Text truncated for display. Full text available on Congress.gov.]