Insurer accused of bias

The Washington state Human Rights Commission has charged an insurance company with illegal discrimination for refusing to sell life insurance to a member of the commission who has HIV.

The case could set a precedent in favor of people with human immunodeficiency virus in an era of longer life expectancies as a result of better drug treatments for the virus that causes AIDS.

“People with HIV must be treated with the same respect and dignity as any other member of society,” said Marc Brenman, executive director of the state Human Rights Commission.

The commission, which enforces anti-discrimination law in Washington state, issued the finding this week against Farmers New World Life Insurance Co., of Mercer Island, Wash., the primary life insurance subsidiary of the Los Angeles-based Farmers Group.

Farmers New World Life is accused of refusing to sell life insurance to Gerald Herbert, of Poulsbo, Wash., a civil rights advocate and a member of the Human Rights Commission appointed by Gov. Chris Gregoire.

Brenman said there is reason to believe the company routinely denies insurance to people with HIV in violation of state laws.

A spokesman for Farmers Group Insurance said the company applies underwriting guidelines fairly and consistently and that the state’s accusation is without merit.

“Farmers New World Life Insurance Co. is not unusual in that its underwriting guidelines do not, and never have, provided coverage for applicants who have tested HIV positive,” said Jerry Davies, director of media relations for Farmers Group. “Applicants who have tested HIV positive do not meet our underwriting guidelines because they present a greater risk than we are willing to cover.”

However, it is illegal under Washington law to “cancel or fail or refuse to issue or renew insurance or a health maintenance agreement to any person” because of disability, according to Washington State Law Against Discrimination.

Brenman said HIV infection is considered a disability under well-established court decisions.

To avoid the appearance of conflict of interest, the Human Rights Commission asked the Office of Insurance Commissioner to investigate the allegation.

A spokeswoman there said she could not comment on the ongoing investigation.

“It is true that most life insurance companies would decline” to insure people with HIV, said Stephanie Marquis, a spokeswoman for the insurance commissioner’s office. “What we are looking at is whether this is fair discrimination.”

Under state law and Office of Insurance Commissioner regulations, a company is not obliged to issue insurance to a class of people if it can prove statistically that people in that class are a greater risk.

“From documents I have seen, the company has not provided information showing a statistically greater risk in insuring individuals with HIV,” Brenman said, adding that Farmers has had numerous opportunities to provide evidence.

Laws are written to protect individuals from fears, stereotypes and prejudices, including “antique thinking,” Brenman said. And the idea that people with HIV might die at any time is antique thinking, he said.

According to a Kaiser Family Foundation study, the age-adjusted death rate from HIV/AIDS declined about 4 percent between 2000 and 2001. Over the six years between 1995 and 2001, mortality from the HIV/AIDS declined nearly 70 percent. This was largely due to better antiretroviral therapy.

In July 2006, Farmers New World Life denied Herbert mortgage life insurance, which is insurance intended to pay off a home mortgage in the event of a homeowner’s death.

According to the Human Rights Commission finding, Herbert tested positive for HIV during a medical exam required as part of the insurance application process. He had already disclosed his HIV status on his insurance application. Herbert could not be reached for comment Wednesday or Thursday.

Farmers New World Life is the 12th largest life insurance provider in the state.