No sex please, we're British insurers - sex questions to change

Whether you'll be accepted for that life insurance policy you want is going to be more dependent on your sexual behaviour in future rather than your sexual orientation. Questions on life insurance application forms which allowed the possibility of discrimination against gay men and subsequent requests for upfront HIV testing are to be replaced by a catch-all designed to reveal everyone's sexual habits.

Effective the end of September 2005, the pertinent question which will determine acceptability at standard rates (all else being equal) for life insurance cover is: "In the last five years have you been exposed to the risk of HIV infection?"

Thus penalty points will be amassed, not for sexual persuasion but for irresponsible sexual behaviour. A year ago the Association of British Insurers (ABI) issued a best practice statement for HIV and long term insurance. The products covered are income protection, critical illness, term life, long term care and the life insurance element of whole life and endowments.

The statement was given the status of ABI Code of Practice; the latest date for implementation by insurers is 30 September 2005. The fundamental recognition is that being gay doesn't mean that a male is at a higher risk of HIV infection. The ABI notes that the primary duty of insurers is to assess insurance applications fairly according to the degree of risk the applicant brings to the insurance pool.

Further, "an individual's occupation is no guide to their HIV risk. Being, for example, a cabin crew member, ballet dancer or hairdresser cannot of itself justify an HIV rating." Celibacy or long term relationships and protected sex are acknowledged.

Along with the HIV exposure question, phrased to address the five main infection routes, life insurance applicants in most cases will still have to answer other, sometimes awkward questions. Such as: "Have you ever been tested positive for HIV, Hepatitis B or C or are you awaiting the results of such a test?" Or: "Within the last five years have you tested positive or been treated for any disease, which was transmitted sexually?" And: "Have you ever injected non-prescription drugs?"

Many life insurers will also still be asking questions about blood transfusions or surgery outside the EU and travel or residence in countries with high HIV prevalence. Failure to answer these questions satisfactorily will, in most cases, result in the request for an HIV test before the application can be processed further. Applying for a relatively large amount of life insurance cover (for instance £250,000 for a single male or £500,000 for a married man or woman) could also trigger an HIV testing.

Where does the change mean for illicit affairs?

In future, whether you are male, female, gay, heterosexual, 20 or 50, you will still be asked the same question. Discrimination is now against the HIV virus and not against gays, but it's been a long time coming notes gay rights campaigner Peter Tatchell, adding that "intrusive and discriminative questions and often inflated premiums for gay men were bought in as a panicked, knee-jerk reaction in the early 1980s".

The revised approach to insurance questioning may exonerate gay applicants of promiscuity and perceived high HIV risk, but where does it leave participants of an illicit heterosexual affair? Will errant sexual behaviour five years ago rebound from the application form to destroy hitherto domestic harmony and marital bliss? The situation could prove awkward for many now-contented couples.

Of course, one can always lie abut previous exposure to HIV risk but doing so runs the risk of having any future claim rejected if the deception is discovered. Some insurers already implement random, HIV testing when sums assured reach a pre-determined level and no doubt will continue to do so.

Prior explicit written permission (usually granted by signing the declaration) must be obtained by the insurer from the applicant before requesting information from his or her doctor. Other than the suspicion likely to be aroused if this permission is refused, take note of the ABI agreement with the British Medical Association; this advises GPs that they should inform insurers if an insurance applicant is HIV positive, is awaiting an HIV test result, or has had one or more episodes of a sexually transmitted disease with long term health implications.

08 September 2005 © Moneyextra.com

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