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Senate Bill Report — SB 6052, Life Insurance Products Intended to Incent Behavioral Changes (January 13, 2020)

Summary

A Senate Bill Report on SB 6052, as of January 13, 2020, from the Senate Committee on Financial Institutions, Economic Development & Trade. The bill concerns life insurance products or services intended to incent behavioral changes that improve the health of the insured, and the sponsors listed are Senators Mullet and Wilson, L. The brief summary states that the bill exempts life insurers offering such products or services from insurance rebating and inducement statutes. The summary of the bill adds that insurers may offer them as noninsurance benefits in an individual life insurance policy with prior approval of the insurance commissioner. The report lists the appropriation as None and states that the bill takes effect on July 1, 2020.

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Issuer
Congressional materials
Document type
Report
Date
2020-01-14
Case
2020 01 14 A26164 D208662 Bill Report 6052 Sba Fiet 20

Cite this document

“Senate Bill Report — SB 6052, Life Insurance Products Intended to Incent Behavioral Changes (January 13, 2020).” Original at app.leg.wa.gov, dated 2020-01-14. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-14-2020-01-14-a26164-d208662-bill-report-6052-sba-fiet-20/, SHA-256 8e5d7e37f88ab92cf2a322c6a26f2c02315f49bc5f4fb3e61ff9c0059bf32142.

Full text

                             SENATE BILL REPORT
                                   SB 6052

                                      As of January 13, 2020

Title: An act relating to life insurance products or services that are intended to incent behavioral
    changes that improve the health and reduce the risk of death of the insured.

Brief Description: Concerning life insurance products or services that are intended to incent
   behavioral changes that improve the health and reduce the risk of death of the insured.

Sponsors: Senators Mullet and Wilson, L.

Brief History:
   Committee Activity: Financial Institutions, Economic Development & Trade: 1/14/20.

                                      Brief Summary of Bill
          Ÿ Exempts life insurers offering products or services that are intended to
            incentivize behavioral changes from insurance rebating and inducement
            statutes.


SENATE  COMMITTEE                  ON      FINANCIAL          INSTITUTIONS,           ECONOMIC
DEVELOPMENT & TRADE

    Staff: Clint McCarthy (786-7319)

    Background: Rebating. No insurer or insurance producer may, as an inducement for the
    sale of insurance, offer or pay to the insured or the insured's employee, any rebate, reduction
    of premium, commission, or any other valuable consideration not expressly provided for in
    the policy. The prohibition does not apply to advertising or promotional programs conducted
    by insurers, producers, or agents giving prizes, goods, wares, or merchandise, not exceeding
    $100 in value per person in any 12-month period, to all insureds or prospective insureds
    under similar qualifying circumstances.

    Illegal Inducements. No insurer, insurance producer, title insurance agent, or other person, as
    an inducement for the sale of insurance, may provide in any policy for, offer, sell, buy, offer
    or promise to buy or give, promise, or allow to or on behalf of, the insured or prospective
    insured: (1) any shares of stock or other securities; (2) certain contracts or other agreements;
    or (3) any prizes, goods, wares, or merchandise exceeding $100 in value.
––––––––––––––––––––––
    This analysis was prepared by non-partisan legislative staff for the use of legislative
    members in their deliberations. This analysis is not a part of the legislation nor does it
    constitute a statement of legislative intent.

Senate Bill Report                              -1-                                          SB 6052
    Individual Life Insurance Noninsurance Benefits. Permissible noninsurance benefits, as part
    of an individual life insurance policy, may include:
         Ÿ will preparation services;
         Ÿ financial and estate planning;
         Ÿ probate and estate settlement services; or
         Ÿ other services the insurance commissioner may identify by rule.

    Summary of Bill: Products or services related to life insurance policies intended to incent
    behavioral changes are exempt from inducement and rebating statutes. Life insurers are
    permitted to offer these products or services as noninsurance benefits as part of an individual
    life insurance policy with prior approval of the insurance commissioner.

    Appropriation: None.

    Fiscal Note: Requested on January 2, 2020.

    Creates Committee/Commission/Task Force that includes Legislative members: No.

    Effective Date: The bill takes effect on July 1, 2020.




Senate Bill Report                             -2-                                         SB 6052

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2020-01-14_a26164_d208662_bill-report-6052-sba-fiet-20.pdf
Original
app.leg.wa.gov
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