Some life insurers are still sending gay men for "unnecessary" HIV tests, according to research by Compass - the gay financial advisers.

The firm asked staff at the top 10 insurers to provide their company's limit at which an applicant would be sent for an HIV test. It found that 80% of frontline customer service staff gave incorrect information.

Legal & General and AEGON Scottish Equitable were highlighted as the worst offenders, with both having the lowest limits at which they would send gay men for HIV tests. Both gave information that indicated different limits dependant on age, which Compass said is "a highly unusual practice".

Insurers are obliged to "treat customers fairly" under new FSA regulations, find out more about this initiative TCF Advice. 

Royal Liver 's "progress" and Bright Grey came out top with a limit of £1m of cover without HIV testing for gay men within a civil partnership.

Chris Morgan, managing director of Compass and a member of the Association of British Insurers (ABI) Working Party on HIV, said: "I find it surprising that two of the major insurers have still not acknowledged the message that 'gay is good'. Following the introduction of the Goods and Services Act 2007, most insurance companies mended their ways, but it seems that some are still dragging their feet."

Lesley McPherson, head of corporate media at AEGON, said the insurer recently altered its philosophy for male civil partners, with an HIV testing limit of £1m introduced in March 2008.

"We are surprised and disappointed by the findings of this survey and will be providing additional training to our customer service staff in order that they are familiar with our HIV testing limits and underwriting philosophy in order that this type of incident does not happen in the future," said McPherson.

Russ Whitworth, director of underwriting and claims at Legal & General, added: "We take no account of whether a male customer is gay; we do not ask customers if they are gay at any time. Our policy is to ask an applicant to take an HIV test for high sums assured for life cover - for single males this is over £300,000 and for married males, males in a civil partnership and all females this is over £1m. The latter matches the highest limit in the industry. We absolutely refute the suggestion that we would discriminate against gay people."

Source: www.hi-mag.com