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F I S C A L I M P A C T R E P O R T

SPONSOR Lujan, B

DATE TYPED 2/24/05

HB HJM 91

SHORT TITLE Denial of Life Insurance to Certain Veterans

SB

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Veterans Services (DVS)

New Mexico National Guard (NMNG)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

House Joint Memorial 91

requests

the Insurance Division (ID) of the PRC to conduct an investi-

gation into the incidence of and rationale for denying life insurance coverage to New Mexico

veterans suffering from post traumatic stress disorder.

The memorial further states the investigation should

identify the mechanisms by which insurance

companies make determinations about whether or not to insure an individual, and under what

circumstances life insurance would be denied to a veteran with post traumatic stress disorder.

The PRC must report its findings to the interim legislative health and human services committee

at its October 2005 meeting.

Significant Issues

The PRC notes some New Mexico veterans are experiencing difficulty in obtaining life insur-

ance due to a diagnosis of post traumatic stress disorder.

House Joint Memorial 91 -- Page 2

The DVS states this issue needs to be addressed. Post Traumatic Stress Disorder (PTSD) is not a

chronic or life threatening disease. Denying veterans the ability to be insured causes undue fi-

nancial stress on the surviving families.

The DVS further notes

PTSD in not exclusively a disorder suffered by veterans. By singling out

combat veterans for denials, the insurance industry is discriminating against a portion of the gen-

eral public because they made the sacrifice to fight for their country. We owe them a debt that is

not easily paid and looking into the reasons for denying these heroes the same coverage available

to all of us that enjoy the freedom that they fought for.

The NMNG provided the following:

The NMNG has deployed over 1600 soldiers and airmen in support of the global war on

terrorism and approximately 800 in combat situations. These personnel have been ex-

posed to traumatic stress and are subject to PTSD. Though not all will suffer from the

disorder; some undoubtedly will. They represent a large population of potentially under

or uninsured citizens.

The effect of being denied life insurance because of PTSD and the second and third order

effect of PTSD being a result of or risk associated with service in the military will serve

to discourage people from serving. It is important to address the inequity of being denied

life insurance based on PTSD and as a secondary issue addressing anything that discour-

ages participation in the military services.

ADMINISTRATIVE IMPLICATIONS

This memorial will require ID staff to conduct a study and prepare a report.

OTHER SUBSTANTIVE ISSUES

The DVS explains PTSD is treatable and veterans’ centers around the state as well as the VA

medical center in Albuquerque are uniquely able to assist veterans suffering with this disorder.

DW/lg