Senate Bill 6052 - State of Washington, 66th Legislature (2020 Regular Session)

Summary

Senate Bill 6052, State of Washington, 66th Legislature, 2020 Regular Session, by Senators Mullet, Wilson, L., and Kuderer, prefiled December 5, 2019 and read first time January 13, 2020. It is referred to the Committee on Financial Institutions, Economic Development & Trade. The act relates to life insurance products or services intended to incent behavioral changes that improve the health and reduce the risk of death of the insured. It amends RCW 48.30.140, 48.30.150, 48.30.155, and 48.23.525. One added subsection of RCW 48.30.140 states that subsection (1) does not apply to products or services related to any policy of life insurance that are intended to incent those behavioral changes. The act takes effect July 1, 2020.

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Full text

     S-4817.3

                               SENATE BILL 6052


     State of Washington       66th Legislature       2020 Regular Session

     By Senators Mullet, Wilson, L., and Kuderer

     Prefiled 12/05/19. Read first time 01/13/20. Referred to Committee
     on Financial Institutions, Economic Development & Trade.




1        AN ACT Relating to life insurance products or services that are
2    intended to incent behavioral changes that improve the health and
3    reduce the risk of death of the insured; amending RCW 48.30.140,
4    48.30.150, 48.30.155, and 48.23.525; and providing an effective date.


 5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 6       Sec. 1.   RCW 48.30.140 and 2019 c 253 s 1 are each amended to
 7   read as follows:
 8       (1) Except to the extent provided for in an applicable filing
 9   with the commissioner then in effect, no insurer, insurance producer,
10   or title insurance agent shall, as an inducement to insurance, or
11   after insurance has been effected, directly or indirectly, offer,
12   promise, allow, give, set off, or pay to the insured or to any
13   employee of the insured, any rebate, discount, abatement, or
14   reduction of premium or any part thereof named in any insurance
15   contract, or any commission thereon, or earnings, profits, dividends,
16   or other benefit, or any other valuable consideration or inducement
17   whatsoever which is not expressly provided for in the policy.
18       (2) Subsection (1) of this section shall not apply as to
19   commissions paid to a licensed insurance producer, or title insurance
20   agent for insurance placed on that person's own property or risks.


                                     p. 1                           SB 6052
 1       (3) This section shall not apply to the allowance by any marine
 2   insurer, or marine insurance producer, to any insured, in connection
 3   with marine insurance, of such discount as is sanctioned by custom
 4   among marine insurers as being additional to the insurance producer's
 5   commission.
 6       (4) This section shall not apply to advertising or promotional
 7   programs conducted by insurers or insurance producers whereby prizes,
 8   goods, wares, gift cards, gift certificates, or merchandise, not
 9   exceeding one hundred dollars in value per person in the aggregate in
10   any twelve-month period, are given to all insureds or prospective
11   insureds under similar qualifying circumstances. This subsection does
12   not apply to title insurers or title insurance agents.
13       (5) This section does not apply to an offset or reimbursement of
14   all or part of a fee paid to an insurance producer as provided in RCW
15   48.17.270.
16       (6)(a) Subsection (1) of this section shall not be construed to
17   prohibit a health carrier or disability insurer from including as
18   part of a group or individual health benefit plan or contract
19   containing health benefits, a wellness program which meets the
20   requirements   for  an   exception   from  the   prohibition  against
21   discrimination based on a health factor under the health insurance
22   portability and accountability act (P.L. 104-191; 110 Stat. 1936) and
23   regulations adopted pursuant to that act.
24       (b) For purposes of this subsection: (i) "Health carrier" and
25   "health benefit plan" have the same meaning as provided in RCW
26   48.43.005; and (ii) "wellness program" has the same meaning as
27   provided in 45 C.F.R. 146.121(f).
28       (7) Subsection (1) of this section does not apply to a payment by
29   an insurer to offset documented expenses incurred by a group
30   policyholder in changing coverages from one insurer to another.
31   Insurers shall describe any such payment in the group insurance
32   policy or in an applicable filing with the commissioner. If an
33   implementation credit is given to a group, the implementation credit
34   is part of the premium for the purposes of RCW 48.14.020 and
35   48.14.0201. This exception to subsection (1) of this section does not
36   apply to "medicare supplemental insurance" or "medicare supplemental
37   insurance policies" as defined in chapter 48.66 RCW.
38       (8) Subsection (7) of this section does not apply to small groups
39   as defined in RCW 48.43.005.


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 1       (9) Subsection (1) of this section does not apply to products or
 2   services related to any policy of life insurance that are intended to
 3   incent behavioral changes that improve the health and reduce the risk
 4   of death of the insured.


 5       Sec. 2.   RCW 48.30.150 and 2019 c 253 s 2 are each amended to
 6   read as follows:
 7       (1) No insurer, insurance producer, title insurance agent, or
 8   other person shall, as an inducement to insurance, or in connection
 9   with any insurance transaction, provide in any policy for, or offer,
10   or sell, buy, or offer or promise to buy or give, or promise, or
11   allow to, or on behalf of, the insured or prospective insured in any
12   manner whatsoever:
13       (a) Any shares of stock or other securities issued or at any time
14   to be issued on any interest therein or rights thereto; or
15       (b) Any special advisory board contract, or other contract,
16   agreement, or understanding of any kind, offering, providing for, or
17   promising any profits or special returns or special dividends; or
18       (c) Any prizes, goods, wares, gift cards, gift certificates, or
19   merchandise of an aggregate value in excess of one hundred dollars
20   per person in the aggregate in any consecutive twelve-month period.
21   This subsection (1)(c) does not apply to title insurers or title
22   insurance agents.
23       (2) Subsection (1) of this section shall not be deemed to
24   prohibit the sale or purchase of securities as a condition to or in
25   connection with surety insurance insuring the performance of an
26   obligation as part of a plan of financing found by the commissioner
27   to be designed and operated in good faith primarily for the purpose
28   of such financing, nor shall it be deemed to prohibit the sale of
29   redeemable securities of a registered investment company in the same
30   transaction in which life insurance is sold.
31       (3)(a) Subsection (1) of this section shall not be deemed to
32   prohibit a health carrier or disability insurer from including as
33   part of a group or individual health benefit plan or contract
34   providing health benefits, a wellness program which meets the
35   requirements   for  an   exception   from  the   prohibition   against
36   discrimination based on a health factor under the health insurance
37   portability and accountability act (P.L. 104-191; 110 Stat. 1936) and
38   regulations adopted pursuant to that act.


                                     p. 3                          SB 6052
 1       (b) For purposes of this subsection: (i) "Health carrier" and
 2   "health benefit plan" have the same meaning as provided in RCW
 3   48.43.005; and (ii) "wellness program" has the same meaning as
 4   provided in 45 C.F.R. 146.121(f).
 5       (4) Subsection (1) of this section does not prohibit an insurer
 6   from issuing any payment to offset documented expenses incurred by a
 7   group policyholder in changing coverages from one insurer to another
 8   as provided in RCW 48.30.140. If an implementation credit is given to
 9   a group, the implementation credit is part of the premium for the
10   purposes of RCW 48.14.020 and 48.14.0201. This exception to
11   subsection (1) of this section does not apply to "medicare
12   supplemental insurance" or "medicare supplemental insurance policies"
13   as defined in chapter 48.66 RCW.
14       (5) Subsection (4) of this section does not apply to small groups
15   as defined in RCW 48.43.005.
16       (6) Subsection (1) of this section does not apply to products or
17   services related to any policy of life insurance that are intended to
18   incent behavioral changes that improve the health and reduce the risk
19   of death of the insured.


20       Sec. 3.   RCW 48.30.155 and 1957 c 193 s 19 are each amended to
21   read as follows:
22       No life or disability insurer shall directly or indirectly
23   participate in any plan to offer or effect any kind or kinds of
24   insurance in this state as an inducement to the purchase by the
25   public   of   any   goods,  securities,   commodities,  services   or
26   subscriptions to publications. This section shall not apply to group
27   or blanket insurance issued pursuant to this code. This section does
28   not apply to products or services related to any policy of life
29   insurance that are intended to incent behavioral changes that improve
30   the health and reduce the risk of death of the insured.


31       Sec. 4. RCW 48.23.525 and 2009 c 76 s 1 are each amended to read
32   as follows:
33       (1) A life insurer may include the following noninsurance
34   benefits as part of a policy of individual life insurance, with the
35   prior approval of the commissioner:
36       (a) Will preparation services;
37       (b) Financial planning and estate planning services;
38       (c) Probate and estate settlement services; ((and))
                                     p. 4                          SB 6052
 1       (d) Products or services related to any policy of individual life
 2   insurance that are intended to incent behavioral changes that improve
 3   the health and reduce the risk of death of the insured; and
 4       (e) Such other services as the commissioner may identify by rule.
 5       (2) The commissioner may adopt rules to ensure disclosure of the
 6   noninsurance benefits permitted under this section, including but not
 7   limited to guidelines concerning the provision of the coverage.
 8       (3) Those providing the services listed in subsection (1) of this
 9   section must be appropriately licensed.
10       (4) This section does not require the commissioner to approve any
11   particular proposed noninsurance benefit. The commissioner may
12   disapprove any proposed noninsurance benefit that the commissioner
13   determines may tend to promote or facilitate the violation of any
14   other section of this title.
15       (5) This section does not expand, limit, or otherwise affect the
16   authority and ethical obligations of those who are authorized by the
17   state supreme court to practice law in this state. This section does
18   not limit the prohibition against the unauthorized practice of law
19   under chapter 2.48 RCW.
20       (6) This section does not affect the application of chapter 21.20
21   RCW.


22      NEW SECTION.   Sec. 5.   This act takes effect July 1, 2020.

                                   --- END ---




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