View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0449...........................................................by BUSINESS
INSURERS - Amends existing law to provide that an insurer or insurance
provider shall not be prohibited from providing to a policyholder or
prospective policyholder inducements of an aggregate value of $50.00 or
less.
01/24 House intro - 1st rdg - to printing
01/25 Rpt prt - to Bus
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 449
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE TRADE PRACTICES AND FRAUD; AMENDING SECTION 41-1314,
3 IDAHO CODE, TO PROVIDE THAT AN INSURER OR INSURANCE PROVIDER SHALL NOT BE
4 PROHIBITED FROM PROVIDING TO A POLICYHOLDER OR PROSPECTIVE POLICYHOLDER
5 INDUCEMENTS OF AN AGGREGATE VALUE OF FIFTY DOLLARS OR LESS AND TO MAKE
6 TECHNICAL CORRECTIONS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 41-1314, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 41-1314. REBATES -- ILLEGAL INDUCEMENTS. (1) Except as otherwise
11 expressly provided by law, no person shall knowingly make, permit to be made,
12 or offer to make any contract or of insurance, or of annuity, or agreement as
13 to such contract, other than as plainly expressed in the contract issued
14 thereon, or pay or allow, or give or offer to pay, allow, or give, directly or
15 indirectly, as inducement to such insurance or annuity or in connection there-
16 with, any rebate of premiums payable on the contract, or of any agent's,
17 solicitor's, or broker's commission related thereto, or any special favor or
18 advantage in the dividends or other benefits thereon, or any paid employment
19 or contract for services of any kind, or any valuable consideration or induce-
20 ment whatever whatsoever not specified in the contract; or directly or indi-
21 rectly give, or sell, or purchase or offer or agree to give, sell, purchase,
22 or allow as inducement to such insurance or annuity or in connection there-
23 with, and whether or not specified or to be specified in the policy or con-
24 tract, any agreement of any form or nature promising returns and profits, or
25 any stocks, bonds, or other securities, or interest present or contingent
26 therein or as measured thereby, of any insurer or other person, or any divi-
27 dends or profits accrued or to accrue thereon; or offer, promise or give any-
28 thing of value whatsoever not specified in the contract. Nor shall any
29 insured, annuitant, or policy holder policyholder or employee thereof, or pro-
30 spective insured, annuitant or policy holder policyholder, or employee
31 thereof, knowingly accept or receive, directly or indirectly, any such prohib-
32 ited contract, agreement, rebate, advantage, employment, or other inducement.
33 (2) Nothing in this section shall be construed as prohibiting the payment
34 of commissions or other compensation to duly licensed agents, solicitors, or
35 brokers, or as prohibiting any insurer from allowing or returning to its par-
36 ticipating policy holders policyholders, members or subscribers, the usual and
37 ordinary dividends, savings, or unabsorbed premium deposits, or as prohibiting
38 any insurer or insurance producer from providing to any policyholder or pro-
39 spective policyholder any prizes, goods, wares, merchandise, articles or prop-
40 erty of an aggregate value of fifty dollars ($50.00) or less.
41 (3) Extension of credit for the payment of premium beyond the customary
42 premium payment period without charging and collecting interest at a reason-
43 able rate per annum on the amount of credit so extended and for the duration
2
1 of such credit is prohibited under this section.
STATEMENT OF PURPOSE
RS15474
Section 41-1314, Idaho Code, currently prohibits an Idaho-licensed
insurance producer 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
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. Insurers 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
None.
Contact
Name: John Mackey, United Heritage
Phone: 322-2685
STATEMENT OF PURPOSE/FISCAL NOTE H 449