Insurance Group Seeks Rebate Resolution in Iowa

Iowa’s law on insurance rebates is clear, and the Des Plaines, Ill.-based the Property Casualty Insurers Association of America (PCI). The national group is urging the Insurance Commissioner Susan Voss to work with the industry to find an appropriate resolution to the concerns regarding this issue without legislative intervention.

“We are looking forward to meeting with the Commissioner and other interested parties on August 15, to help resolve this issue,” said Ann Weber, vice president and regional manager for PCI. “Commissioner Voss demonstrated a willingness to find workable solutions when she allowed insurers to continue the long-held tradition of providing giveaway trinkets at the state fair August 7 – 17, 2008. Now we are encouraging the Commissioner to use that same evenhanded judgment to work with the industry to find a reasonable overall resolution.”

Insurance rebates have become the topic of much discussion in Iowa following Bulletin 08-2008, 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 couple years regarding what constitutes a rebate under Iowa law and the division believes this is the best approach at this time until legislation can be considered during the 2009 Legislative Session.

“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.”

PCI is composed of more than 1,000 member companies, identifies itself as representing the broadest cross-section of insurers of any national trade association.

Source: PCI

Topics Legislation Iowa