A national insurance trade group is praising the Iowa Insurance Division over its decision to rescind a bulletin that would restrict gifts and other small items under the heading of charities or advertising.
The Property Casualty Insurers Association of America (PCI) lauded the decision to rescind Rebate Bulletin 08-11, which would have encouraged the introduction of unnecessary legislation prohibiting insurers from offering any goods or services not specifically incorporated in the policy.
PCI delivered an all-industry letter and joined a number of industry members at a public hearing Friday to voice concerns about the bulletin being overly restrictive and to offer input on which practices constitute rebates and which are business practices that can be more accurately described as advertising or charitable activities.
Insurance Commissioner Susan Voss announced she will rescind the rebate bulletin and begin to prepare a subsequent bulletin, which is expected by August 29.
“PCI commends Insurance Commissioner Voss for addressing this issue and taking into account concerns and input from industry groups,” said Ann Weber, vice president and regional manager for PCI. “We believe the Iowa Insurance Division and the industry can work together regarding the bulletin to find an appropriate resolution to the concerns without legislative intervention.”
Insurance rebates have become the topic of much discussion in Iowa following Bulletin 08-11, which prohibited all carriers and insurance producers licensed and doing business in Iowa from offering any form of a good or service not specifically incorporated into the policy. In the bulletin, Commissioner Voss notes that there have been discussions over the past few years regarding what constitutes a rebate under Iowa law.
“Because Iowa’s law clearly spells out what constitutes unfair competition or a deceptive act, it is unnecessary to advance new legislation on this issue,” said Weber. “Iowa’s law is based on the model developed by the National Association of Insurance Commissioners and is similar to many other states. This type of uniformity among the states is important to maintain. The pens, calendars and other novelties often given away by insurers are clearly not intended as an inducement to buy insurance. However, the statute allows the division the ability to review specific practices on an individual basis that come under question. This is a matter that can and should be resolved without resorting to a burdensome law or overly restrictive regulation.”
Source: PCI
Topics Legislation Iowa
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