View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0722......................................................by STATE AFFAIRS
INSURANCE - Amends existing law relating to insurance trade practices and
frauds to provide that a life insurer or casualty insurer, or producers who
are marketing life insurance, property insurance or casualty insurance,
shall not be prohibited from providing to a policyholder or prospective
policyholder of life, property or casualty insurance, inducements of an
aggregate value of $50.00 or less.
02/22 House intro - 1st rdg - to printing
02/23 Rpt prt - to Bus
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 63-0-7
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Bolz, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
Nonini, Pasley-Stuart, Pence, Raybould, Ringo, Roberts, Rusche,
Rydalch, Sali, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Boe, Brackett, Ring, Sayler, Stevenson, Trail,
Wills
Floor Sponsor - Nonini
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to Com/HuRes
03/15 Rpt out - rec d/p - to 2nd rdg
03/16 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Werk, Williams
NAYS -- None
Absent and excused -- Marley, Sweet
Floor Sponsor - Compton
Title apvd - to House
03/21 To enrol
03/22 Rpt enrol - Sp signed
03/23 Pres signed - To Governor
03/24 Governor signed
Session Law Chapter 212
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 722
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE TRADE PRACTICES AND FRAUDS; AMENDING SECTION 41-1314,
3 IDAHO CODE, TO PROVIDE THAT A LIFE INSURER, PROPERTY INSURER OR CASUALTY
4 INSURER, OR PRODUCERS WHO ARE MARKETING LIFE INSURANCE, PROPERTY INSURANCE
5 OR CASUALTY INSURANCE, SHALL NOT BE PROHIBITED FROM PROVIDING TO A POLICY-
6 HOLDER OR PROSPECTIVE POLICYHOLDER OF LIFE, PROPERTY OR CASUALTY INSUR-
7 ANCE, INDUCEMENTS OF AN AGGREGATE VALUE OF FIFTY DOLLARS OR LESS AND TO
8 MAKE TECHNICAL CORRECTIONS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 41-1314, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 41-1314. REBATES -- ILLEGAL INDUCEMENTS. (1) Except as otherwise
13 expressly provided by law, no person shall knowingly make, permit to be made,
14 or offer to make any contract or of insurance, or of annuity, or agreement as
15 to such contract, other than as plainly expressed in the contract issued
16 thereon, or pay or allow, or give or offer to pay, allow, or give, directly or
17 indirectly, as inducement to such insurance or annuity or in connection there-
18 with, any rebate of premiums payable on the contract, or of any agent's,
19 solicitor's, or broker's commission related thereto, or any special favor or
20 advantage in the dividends or other benefits thereon, or any paid employment
21 or contract for services of any kind, or any valuable consideration or induce-
22 ment whatever not specified in the contract; or directly or indirectly give,
23 or sell, or purchase or offer or agree to give, sell, purchase, or allow as
24 inducement to such insurance or annuity or in connection therewith, and
25 whether or not specified or to be specified in the policy or contract, any
26 agreement of any form or nature promising returns and profits, or any stocks,
27 bonds, or other securities, or interest present or contingent therein or as
28 measured thereby, of any insurer or other person, or any dividends or profits
29 accrued or to accrue thereon; or offer, promise or give anything of value
30 whatsoever not specified in the contract. Nor shall any insured, annuitant, or
31 policy holder policyholder or employee thereof, or prospective insured, annu-
32 itant or policy holder policyholder, or employee thereof, knowingly accept or
33 receive, directly or indirectly, any such prohibited contract, agreement,
34 rebate, advantage, employment, or other inducement.
35 (2) Nothing in this section shall be construed as prohibiting the payment
36 of commissions or other compensation to duly licensed agents, solicitors, or
37 brokers, or as prohibiting any insurer from allowing or returning to its par-
38 ticipating policy holders policyholders, members or subscribers, the usual and
39 ordinary dividends, savings, or unabsorbed premium deposits.
40 (3) Nothing in this section shall be construed as prohibiting a life
41 insurer, property insurer or casualty insurer, or producers who are marketing
42 life insurance, property insurance or casualty insurance, from providing to a
43 policyholder or prospective policyholder of life, property or casualty insur-
2
1 ance, any prizes, goods, wares, merchandise, articles or property of an aggre-
2 gate value of fifty dollars ($50.00) or less.
3 (4) Extension of credit for the payment of premium beyond the customary
4 premium payment period without charging and collecting interest at a reason-
5 able rate per annum on the amount of credit so extended and for the duration
6 of such credit is prohibited under this section.
STATEMENT OF PURPOSE
RS 16101
Section 41-1314, Idaho Code, currently prohibits an Idaho-
licensed life, property or casualty insurer or Idaho-licensed
insurance producer marketing these kinds of insurance from
offering or providing to an applicant or policyholder "anything
of value" that is not specified in the insurance contract. Under
its terms, this statute prohibits these insurance companies and
producers from giving away items to their clients if the item
provided has any value, such as calendars, pens, or other such
items or merchandise. However, it is current industry practice
to give away such items to policyholders at no cost to the
policyholder.
Life, property and casualty insurers and their producers should
be permitted to provide items to their applicants and
policyholders when such items have an aggregate value of fifty
dollars or less.
FISCAL NOTE
There is no fiscal impact.
Contact
Name: John Mackey, ID Assoc. of Insurance & Financial Advisors
Phone: (208) 322-2685 or (208) 250-2204
Name: Representative Bob Nonini
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 722