California Assembly Bill AB1798

California 2025-2026 Regular Session

• Introduced: 2/10/26
• Refer: 3/16/26
• Report Pass: 4/8/26
• Refer: 4/9/26
• Report Pass: 4/15/26
• Refer: 4/20/26
• Report Pass: 4/22/26
• Refer: 4/22/26
• Refer: 5/6/26
• Report Pass: 5/14/26
• Engrossed: 5/27/26
• Refer: 5/28/26

Caption

Genetic testing for life and disability insurance.

Impact

If enacted, AB 1798 would significantly alter how insurers handle genetic testing results. The bill repeals existing provisions that allow insurers to base underwriting decisions on genetic information, thereby strengthening protections against potential discrimination. The bill aims to create clearer boundaries around the information that can be used in insurance applications, making it illegal for insurers to require genetic testing as part of the underwriting process. It introduces civil penalties for violations of these rules, thereby holding insurers accountable for improper use of genetic data. This change is expected to encourage a more equitable insurance market for consumers.

Summary

Assembly Bill 1798 aims to enhance consumer protections regarding the use of genetic information in the life and disability insurance sectors. The bill seeks to prohibit insurance providers from canceling, limiting, or denying coverage based on the results of genetic testing unless certain criteria are satisfied. Additionally, it intends to prevent insurers from soliciting genetic information unless necessary under stringent conditions, such as for high-value policies above $1.5 million. This legislation represents a robust step towards safeguarding consumer privacy and autonomy in genetic matters, ensuring that individuals are not discriminated against due to their genetic predispositions.

Sentiment

The sentiment surrounding AB 1798 appears to be largely supportive among consumer rights advocates, who view the legislation as crucial in today's data-sensitive environment. Advocates argue that the bill is necessary to prevent potential misuse of sensitive genetic information which may lead to unfair prejudice. Conversely, some industry representatives express concern that the restrictive nature of the bill may hinder their ability to appropriately assess risk and could lead to higher premiums for consumers due to increased uncertainty in underwriting.

Contention

One area of contention relates to the balance between consumer protection and the operational needs of insurance companies. Industry advocates suggest that preventing access to genetic testing could complicate their risk assessment processes, leading to less competitive insurance options. Moreover, there are concerns regarding the complexity of implementing these new regulations effectively. As the insurance landscape often necessitates quick adjustments, there is anxiety that such constraints might lead to unintended consequences, including increased overall insurance costs for consumers.