Predictive genetic tests can identify genes that can directly cause some rare hereditary conditions before any symptoms occur. They are usually carried out because the condition runs in the family.
A positive test result indicates that an individual has inherited the faulty gene and may go on to develop the disease. But it is not certain that they will. Nevertheless, they may find it impossible to obtain life insurance, critical illness or income protection cover if they disclose the test result to prospective insurers.
The voluntary code means that someone applying for insurance up to a certain level is not obliged to reveal the results of a predictive genetic test. Nor can insurers pressurise applicants into having one taken.
Individuals applying for insurance must still give details about their health and any major health problems in their family if this information is requested on the application form.
The moratorium applies to all members of the ABI and to insurance policies of up to £500,000 for life insurance, £300,000 for critical illness insurance and £30,000 a year from income protection policies.
For policies above these levels, insurers will not use adverse predictive genetic test results, unless the test has been specifically approved by the UK Government. Only around three percent of all insurance policies sold are above these limits. Currently, the only approved test is for Huntingdon's disease and only for life insurance of over £500,000.
ABI Director General Stephen Haddrill said the moratorium works well for consumers.
"It means people can insure themselves and their families, even if they have had an adverse result from a predictive genetic test," he said. "The moratorium has proved effective since its introduction in 2001 and can now continue.”
The ban does not prevent someone from choosing to reveal a genetic test result to insurers, if, for instance, it shows that they have not inherited a condition that affects other family members. Insurers can take this information into account, although each case will be assessed individually.
The moratorium is regularly reviewed to ensure it keeps pace with medical and genetic developments. The next review will take place in 2011.