Senate Bill Report on SB 6052 — Life Insurance Products That Incent Behavioral Changes
Summary
A Senate Bill Report on SB 6052, as of January 15, 2020, for the Senate Committee on Financial Institutions, Economic Development & Trade, showing committee activity on 1/14/20. The bill concerns life insurance products or services intended to incent behavioral changes that improve the health and reduce the risk of death of the insured. The brief summary states that it exempts life insurers offering such products or services from insurance rebating and inducement statutes, and the summary of the bill states that insurers may offer them as noninsurance benefits in an individual life insurance policy with prior approval of the insurance commissioner. The bill takes effect on July 1, 2020. The staff summary of public testimony cites John Hancock's Vitality program as an example.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2020-01-21
- Case
- 2020 01 21 A26305 D209517 Bill Report 6052 Sba Fiet 20 Ta
Cite this document
“Senate Bill Report on SB 6052 — Life Insurance Products That Incent Behavioral Changes.”
Original at app.leg.wa.gov, dated 2020-01-21. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-21-2020-01-21-a26305-d209517-bill-report-6052-sba-fiet-20-ta/
, SHA-256 80d1f3215b12caa2cb395adc1216e51e1149a18eda5fd8d3831194bc5251f26a.Full text
SENATE BILL REPORT
SB 6052
As of January 15, 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, Wilson, L. and Kuderer.
Brief History:
Committee Activity: Financial Institutions, Economic Development & Trade: 1/14/20.
Brief Summary of Bill
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:
will preparation services;
financial and estate planning;
probate and estate settlement services; or
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.
Staff Summary of Public Testimony: PRO: The legislation is modeled on prior legislation
that was used for health insurance carriers. Better health is associated with fewer services
being utilized. John Hancock's Vitality program is an example of a life insurance program
that provides incentives for healthy behavior. Participants can earn points which leads to
status. The better the status, the more lucrative the benefits. Insurers are not in the business
of giving out freebies, they provide products and services when they are earned. The Vitality
program has been very lucrative for the company. Policyholders are using the products and
the average policyholder using the program have 24 percent more steps than the average
Americans. This program is used in all states.
OTHER: OIC is for the bill, but would like to have some rulemaking authority to regulate
the program.
Persons Testifying: PRO: Senator Mark Mullet, Prime Sponsor; Mel Sorensen, John
Hancock; American Council of Life Insurers; NAIFA; Ken Ross, John Hancock; Ann
Delaney, John Hancock.
OTHER: Lonnie Johns-Brown, Office of the Insurance Commissioner.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -2- SB 6052
File and source
- File
- 2020-01-21_a26305_d209517_bill-report-6052-sba-fiet-20-ta.pdf
- Size
- 86,902 bytes
- SHA-256
- 80d1f3215b12caa2cb395adc1216e51e1149a18eda5fd8d3831194bc5251f26a
- Original
- app.leg.wa.gov