The Iowa Insurance Division (IID) said that any goods or services offered to a policy holder that are not specifically incorporated as part of the policy contract are rebates and are prohibited by state law.
The Iowa Insurance Division (IID) said that any goods or services offered to a policy holder that are not specifically incorporated as part of the policy contract are rebates and are prohibited by state law.
Iowa Insurance Commissioner Susan Voss issued a bulletin June 30 banning insurers from offering any form of a good or service not specifically incorporated in the policy.
The IID said it continues to receive complaints regarding services, products and memberships that are being offered in conjunction with an insurance policy. It also said it will be conducting a market survey for compliance regarding the bulletin and will take regulatory action if necessary.
“We recognize that many carriers provide certain services to their policyholders,” the bulletin said. “We believe that many of these services or products provide benefits to the policyholders. However, because the statute provides no exceptions or dollar limits and we have been unable to come to consensus over that past several years of discussions, the division believes this is the best approach at this time until legislation can be considered during the 2009 Legislative Session. It is our hope to bring all interested parties together during the summer and fall to discuss an appropriate resolution to this issue.”
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