| Summary |
The bill creates the Model Rebate Reform Act to modernize the
law concerning insurance rebates by recognizing new insurance products
while maintaining necessary consumer protections. The bill allows an
insurer or insurance producer to give a gift valued under $250 in
connection with the marketing, purchase, or retention of an insurance
contract and to conduct a free raffle or drawing with prizes valued up to
$500.
Additionally, the bill provides that an insurer or insurance
producer may give a free or discounted product or service in conjunction
with or related to an insurance contract if the product or service:
•
Is intended to educate about, assess, monitor, control,
mitigate, or protect an individual against loss of life, health,
or property; or
•
Has a nexus to or enhances the value of the insurance
benefits.
Next, the bill provides that an insurer or insurance producer may
provide an additional free or discounted service if the service is at least
tangentially related to an insurance contract or the administration of an
insurance contract, the receipt of the service is not contingent on the
purchase of insurance, and the service is offered on the same terms to all
potential insurance customers. Before the purchase of insurance, receipt
of a quote for insurance, or designation of an agent of record, the insurer
or insurance producer providing the service shall disclose in writing to the
recipient that receipt of the service is not contingent on the purchase of
insurance.
Lastly, the bill permits the commissioner of insurance to adopt
rules as necessary to effectuate the provisions of the bill, including
adjusting the financial limitations on gifts and prizes as necessary for
inflation.
|
