Bill 667.

Summary.

The bill proposes to give people with type 1 diabetes access to life insurance on equal terms, including debtor life insurance required for credit. It defines the condition, both types of insurance, differentiated premiums and adequate glycemic control. An insurer authorized to operate in the Republic of Panama could not refuse an application primarily or solely because of the diagnosis.

Insurers would have to assess each application individually. The assessment would consider a glycated hemoglobin result from the preceding six months, documented chronic complications, adherence to prescribed treatment and other risk factors. Insurers could request medical examinations without charging the applicant for them. Where the actuarial risk exceeds that of the general insured population, an insurer could set a differentiated premium supported by an actuarial technical note and registered with and approved in advance by the Superintendency of Insurance and Reinsurance of Panama (Superintendencia de Seguros y Reaseguros de Panamá). The premium would be reviewed every two years and could not serve as a disguised refusal. At each renewal, the policyholder would have to provide medical confirmation of satisfactory adherence to treatment.

Banking and financial institutions regulated by the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá) could not deny credit solely because their insurer does not cover people with type 1 diabetes. They would have to accept a policy from another authorized insurer that meets the credit coverage requirements. In administrative or judicial discrimination proceedings, the insurer would have to establish that it performed an individual assessment and that objective, proportionate actuarial grounds justified its decision. Without a precontractual individual assessment, it could not invoke the preexisting condition to exclude a covered event. An affected person could file a complaint with the insurance regulator, which would have thirty calendar days to decide it, or bring a civil court action seeking performance of the contract and compensation for harm.

After a hearing at which the insurer may present its defense, the insurance regulator could issue a written warning, impose a fine from fifty thousand balboas (B/. 50,000.00) to five hundred thousand balboas (B/. 500,000.00), suspend authorization for the life insurance line, or cancel operating authorization, according to the violation. It would also update clinical and actuarial assessment criteria every two years. The bill adds policyholder rights and rules on abusive terms to Law 12 of 2012 (Ley 12 de 2012); a banking customer right to Decree Law No. 9 of 1998 (Decreto Ley N° 9 de 1998); and a prohibited practice for finance companies to Law 42 of 2001 (Ley 42 de 2001). The Executive Branch (Órgano Ejecutivo) would issue regulations on assessments, premiums, complaints and mediation within ninety calendar days. The proposed law would take effect six months after publication in the Official Gazette.

The provisions concern the insurance and banking regulators, civil courts, insurers, banks, finance companies and people with type 1 diabetes seeking insurance or credit.