|Posted:||June 28, 2017 03:19 PM|
|From:||Representative Mike Tobash|
|To:||All House members|
|Subject:||Rebates and Inducements|
I am introducing a two bill legislative package to allow insurers and producers to offer small incentives to get consumers to consider purchases, etc., just like is done in selling anything else in America
These bills will amend the Insurance Department Act and Insurance Company Law to allow producers and insurers to spend as much as $100 on an insured or prospective insured in marketing insurance to that client or prospective client. This modernizes these laws to allow reasonable, practical marketing in a competitive field without jeopardizing the pricing integrity of insurance. For instance, this will enable an insurer or producer to offer small incentives, such as, a coffee or gas card if a consumer will obtain a quote or submit an application. Consumers benefit when they shop around, and these types of incentives have proven useful in achieving that.
I propose capping the value at $100, while giving the Insurance Commissioner the discretion to increase this amount in the future. This matches the dollar amount that applies to other financial services at the national level. I also propose expressly allowing insurers to provide risk management and loss control services to their insureds without having that labeled an inducement.
Please join me in co-sponsoring this legislation.
Introduced as HB1841
|Description:||Amends the Insurance Company Law of 1921 to allow for rebates and inducements.|
Introduced as HB1842
|Description:||Amends the Insurance Department Act of 1921 to allow for rebates and inducements.|