INDUCEMENTS HB 333 2011 Legislative Session

Creation of 31A-23a-402.5 Inducements

Services Prohibited Providing a premium or commission rebate Paying the salary of an employee of a person who purchases

an insurance product from the licensee Paying the salary, by an insurer or TPA, of an onsite staff

member to perform an act prohibited

Services NOT prohibited Social courtesy of $25 not conditioned on a sale Extending premium credit Providing limited Human Resources

Guidance related to federal and state laws Workshops directly related to an insurance product Education on how product relates to tax law

Preparing/providing forms directly related to insurance product Preparing/providing docs related to Section 125 IRS Code

INDUCEMENTS Services NOT Prohibited (cont.)

Providing enrollment and billing assistance Communicating coverage in writing/materials Providing claims management as allowed by appropriate

license Recommending/negotiating for placing and pricing of

insurance product Providing health fair or assistance on wellness program Providing COBRA , ERISA, HIPAA information or services Providing Proof of Coverage to 3rd party w/legitimate int. Facilitating risk management services directly related to

product sold or offered Risk management Claims and loss control services Risk assessment consulting

Providing services that are legitimately part of servicing the contract

Providing other related services approved by the department

INDUCEMENTSServices Allowed if Charged ‘Fair Market Value’

Performing background checks Providing legal services by a licensed attorney Preparing and providing employee handbooks Providing job descriptions, postings, applications Providing payroll services Providing performance reviews/performance review

training Providing union advice Providing accounting services Providing data analysis info. technology programs Providing administration of HRA or HSA accounts

2013 INDUCEMENT CHANGES HB 47 2013 Legislative Session

31A-23a-402.5(4)(a) Social Courtesy cannot be conditioned on a quote or

a sale

31A-23a-402.5(4)(v) Allowed Risk Management services directly related to

P&C insurance product include analysis of:Employer Job DescriptionsEmployer’s Safety Procedures or ManualsProviding Info and Training on Best Practices

31A-23a-402.5(6) Billable services in Section 31A-23a-402.5(5) must be

itemized and billed separately from premium billing

INDUCEMENT CHANGES (cont.)

31A-23a-402.5(7) $25 Social Courtesy allowance cannot be

connected to a quote or sale of insurance

31A-23a-402.5(7) New section allowing for a $10 de minimis gift to

be conditioned on a quote, but must be paid for by the insurer

31A-23a-402.5(7) New section allowing for a $10 de minimis gift to

be conditioned on a quote, but must be paid for by the insurer

INDUCEMENT CHANGES (cont.)

R590-154Defines social courtesy to be a respectful

act or expression of generosity not conditioned on a quote, sale or retention of an insurance product and not to exceed $25

Defines fair market value to mean what a willing, unpressured buyer would pay for a product or service in the open market without any connection to other goods, services or contracts sold by the licensee

Bulletin 2013-5