As of July 1, 2011, Idaho Exception to Rebate Statute Permitting Certain Producers and Insurers To Offer Goods to Policyholders Is Increased to $200 Maximum
Jun 14, 2011
The Idaho Department of Insurance has advised that, effective July 1, 2011, Idaho law has been amended to permit producers and insurers of life, disability (health), and property and casualty insurance the ability to offer goods to an actual or prospective policyholder, so long as the aggregate value of the goods does not exceed $200 in a calendar year. This exception to the state rebate law was previously capped at $50 and was not applicable to disability insurance or insurers.
Issued on June 8, 2011, Bulletin No. 11-03, (“Bulletin”) explains that the $200 exception applies only to goods, and not to value-added services. The Bulletin discusses Idaho Code Section 41-1314, which restricts the offer or provision of goods or services as a rebate or inducement to insurance.
The new law (House Bill 283) also replaces the terms “agent,” “solicitor” or “broker” with the current term “producer” in certain sections of the Idaho Insurance Code.
In the Bulletin, Idaho Insurance Director William Deal encourages insurers and producers doing business in Idaho to carefully review their policies and marketing efforts involving any goods or services offered without reasonable charge to their customers or prospective customers.
The Bulletin, which provides additional background and specifics on the issue, is attached for review.