Amendments for SB25-058
Senate Journal, February 27
After consideration on the merits, the Committee recommends that SB25-058 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.
Amend printed bill, strike everything below the enacting clause and substitute:
"SECTION 1. In Colorado Revised Statutes, 10-3-1104, amend (1)(g)
and (2) introductory portion; and add (2)(e), (2.1), (2.2), (2.3), (2.4), (2.5),
(2.6), (2.7), and (6) as follows:
10-3-1104. Unfair methods of competition - unfair or deceptive
practices - rules - definitions. (1) The following are defined as unfair methods
of competition and unfair or deceptive acts or practices in the business of
insurance:
(g) Rebates: Except as OTHERWISE PROVIDED IN THIS SECTION AND AS
otherwise expressly provided by law, knowingly permitting, or offering to
make, or making any contract of insurance or agreement as to such contract,
other than as plainly expressed in the insurance contract issued thereon, or
paying, or allowing, or giving, or offering to pay, allow, or give, directly or
indirectly, as inducement to such insurance or annuity, any rebate of premiums
payable on the contract, or any special favor or advantage in the dividends or
other benefits thereon ON THE CONTRACT OR ANNUITY, or any valuable
consideration or inducement whatever not specified in the contract; or giving,
or selling, or purchasing, or offering to give, sell, or purchase, as inducement
to such insurance contract or annuity or in connection therewith WITH THE
INSURANCE CONTRACT OR ANNUITY, any stocks, bonds, or other securities of
any insurance company or other corporation, association, or partnership, or any
dividends or profits accrued thereon ON THE STOCKS, BONDS, OR OTHER
SECURITIES, or anything of value whatsoever not specified in the contract;
(2) Nothing in paragraph (f) or (g) of subsection (1) SUBSECTION (1)(f)
OR (1)(g) of this section shall be construed as including within the definition of
discrimination or rebates any of the following practices:
(e) OFFERING OR PROVIDING, BY OR THROUGH AN EMPLOYEE,
AFFILIATE, OR THIRD-PARTY REPRESENTATIVE OF AN INSURER OR INSURANCE
PRODUCER, A VALUE-ADDED PRODUCT OR SERVICE AT NO COST OR REDUCED
COST, WHEN THE PRODUCT OR SERVICE IS NOT SPECIFIED IN THE INSURANCE
POLICY, IF THE PRODUCT OR SERVICE:
(I) RELATES TO THE INSURANCE COVERAGE; AND
(II) IS PRIMARILY AIMED TO ACHIEVE ONE OR MORE OF THE FOLLOWING:
(A) PROVIDE LOSS MITIGATION OR LOSS CONTROL;
(B) REDUCE CLAIM COSTS OR CLAIM SETTLEMENT COSTS;
(C) PROVIDE EDUCATION ABOUT LIABILITY RISK OR RISK OF LOSS TO
INDIVIDUALS OR PROPERTY;
(D) MONITOR OR ASSESS RISK, IDENTIFY SOURCES OF RISK, OR DEVELOP
STRATEGIES FOR ELIMINATING OR REDUCING RISK;
(E) ENHANCE HEALTH;
(F) PROMOTE FINANCIAL WELLNESS THROUGH ITEMS SUCH AS
EDUCATIONAL OR FINANCIAL PLANNING SERVICES;
(G) PROVIDE POST-LOSS SERVICES;
(H) ENCOURAGE BEHAVIORAL CHANGES TO IMPROVE THE HEALTH OR
REDUCE THE RISK OF DEATH OR DISABILITY OF A CUSTOMER; OR
(I) ASSIST IN THE ADMINISTRATION OF EMPLOYEE OR RETIREE BENEFIT
INSURANCE COVERAGE.
(2.1) THE COST TO AN INSURER OR INSURANCE PRODUCER OFFERING A
PRODUCT OR SERVICE TO A CUSTOMER PURSUANT TO SUBSECTION (2)(e) OF THIS
SECTION MUST BE REASONABLE IN COMPARISON TO THAT CUSTOMER'S
PREMIUMS OR INSURANCE COVERAGE.
(2.2) IF AN INSURER OR INSURANCE PRODUCER IS OFFERING A PRODUCT
OR SERVICE PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION, THE INSURER OR
INSURANCE PRODUCER SHALL PROVIDE A CUSTOMER WITH CONTACT
INFORMATION TO ASSIST THE CUSTOMER WITH QUESTIONS REGARDING THE
PRODUCT OR SERVICE.
(2.3) TO ENSURE CONSUMER PROTECTION WHILE IMPLEMENTING THE
PERMITTED PRACTICES SET FORTH IN SUBSECTION (2) OF THIS SECTION, THE
COMMISSIONER MAY ADOPT RULES CONCERNING ISSUES THAT INCLUDE
CONSUMER DATA PROTECTIONS AND PRIVACY, CONSUMER DISCLOSURE, AND
UNFAIR DISCRIMINATION.
(2.4) THE AVAILABILITY OF A PRODUCT OR SERVICE OFFERED PURSUANT
TO SUBSECTION (2)(e) OF THIS SECTION MUST BE:
(a) BASED ON DOCUMENTED, OBJECTIVE CRITERIA THAT IS MAINTAINED
BY THE INSURER OR INSURANCE PRODUCER AND MUST BE PRODUCED UPON
REQUEST BY THE DIVISION; AND
(b) OFFERED IN A MANNER THAT IS NOT UNFAIRLY DISCRIMINATORY.
(2.5) (a) IF AN INSURER OR INSURANCE PRODUCER DOES NOT HAVE
SUFFICIENT EVIDENCE BUT HAS A GOOD FAITH BELIEF THAT A PRODUCT OR
SERVICE MEETS THE CRITERIA SET FORTH IN SUBSECTIONS (2)(e)(II)(A) TO
(2)(e)(II)(I) OF THIS SECTION, THE INSURER OR INSURANCE PRODUCER SHALL
PROVIDE THE PRODUCT OR SERVICE IN A MANNER THAT IS NOT UNFAIRLY
DISCRIMINATORY AS PART OF A PILOT OR TESTING PROGRAM FOR NO MORE THAN
ONE YEAR.
(b) AN INSURER OR INSURANCE PRODUCER SHALL NOTIFY THE DIVISION
OF A PILOT OR TESTING PROGRAM PRIOR TO LAUNCHING AND, UNLESS THE
DIVISION OBJECTS WITHIN TWENTY-ONE DAYS AFTER RECEIVING NOTICE OF THE
PROGRAM, MAY PROCEED WITH THE PROGRAM.
(2.6) (a) AN INSURER OR INSURANCE PRODUCER MAY:
(I) OFFER OR GIVE A NONCASH GIFT, ITEM, OR SERVICE, INCLUDING A
MEAL OR CHARITABLE DONATION, TO OR ON BEHALF OF A CUSTOMER IN
CONNECTION WITH THE MARKETING, SALE, PURCHASE, OR RETENTION OF AN
INSURANCE CONTRACT IF THE COST DOES NOT EXCEED AN AMOUNT DETERMINED
TO BE REASONABLE BY THE COMMISSIONER PER POLICY YEAR PER TERM;
(II) OFFER OR GIVE A NONCASH GIFT, ITEM, OR SERVICE, INCLUDING A
MEAL OR CHARITABLE DONATION, TO OR ON BEHALF OF A CUSTOMER,
INCLUDING A COMMERCIAL OR INSTITUTIONAL CUSTOMER, IN CONNECTION WITH
THE MARKETING, SALE, PURCHASE, OR RETENTION OF AN INSURANCE CONTRACT
IF:
(A) THE COST IS REASONABLE IN COMPARISON TO THE PREMIUM OR
PROPOSED PREMIUM; AND
(B) THE COST OF THE GIFT, ITEM, OR SERVICE IS NOT INCLUDED IN ANY
AMOUNT CHARGED TO ANOTHER PERSON OR ENTITY; OR
(III) CONDUCT A RAFFLE OR DRAWING IF:
(A) THERE IS NO FINANCIAL COST TO PARTICIPATE;
(B) THE RAFFLE OR DRAWING DOES NOT OBLIGATE PARTICIPANTS TO
PURCHASE INSURANCE;
(C) THE PRIZES ARE NOT VALUED IN EXCESS OF A REASONABLE AMOUNT
DETERMINED BY THE COMMISSIONER; AND
(D) THE RAFFLE OR DRAWING IS OPEN TO THE PUBLIC.
(b) (I) ANY OFFER, GIFT, RAFFLE, OR DRAWING MADE OR CONDUCTED
PURSUANT TO THIS SUBSECTION (2.6) MUST BE OFFERED IN A MANNER THAT IS
NOT UNFAIRLY DISCRIMINATORY.
(II) AN INSURER OR INSURANCE PRODUCER SHALL NOT REQUIRE A
CUSTOMER TO PURCHASE, CONTINUE, OR RENEW AN INSURANCE POLICY IN
EXCHANGE FOR A GIFT, ITEM, SERVICE, OR PRIZE RECEIVED OR WON PURSUANT
TO THIS SUBSECTION (2.6).
(2.7) EXCEPT AS APPLIED TO AN INSURER OR INSURANCE PRODUCER'S
OFFER OF A VALUE-ADDED PRODUCT OR SERVICE, AN INSURER OR INSURANCE
PRODUCER SHALL NOT:
(a) OFFER OR PROVIDE INSURANCE AS AN INDUCEMENT TO THE
PURCHASE OF ANOTHER POLICY; OR
(b) USE THE WORDS "FREE" OR "NO COST" OR WORDS OF SIMILAR
IMPORT IN AN ADVERTISEMENT.
(6) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "CUSTOMER" INCLUDES A POLICYHOLDER, POTENTIAL
POLICYHOLDER, CERTIFICATE HOLDER, POTENTIAL CERTIFICATE HOLDER,
INSURED, POTENTIAL INSURED, OR APPLICANT.
(b) "INSURANCE PRODUCER" HAS THE MEANING SET FORTH IN SECTION
10-2-103 (6).
SECTION 2. Act subject to petition - effective date - applicability.
(1) This act takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except that,
if a referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within such
period, then the act, item, section, or part will not take effect unless approved
by the people at the general election to be held in November 2026 and, in such
case, will take effect on the date of the official declaration of the vote thereon
by the governor.
(2) This act applies to conduct occurring on or after the applicable
effective date of this act.".
Health &
Human
Services
Senate Journal, March 3
SB25-058 by Senator(s) Snyder; --Concerning a model act to provide a framework that allows
insurance companies to give rebates that meet specified criteria to maintain consumer
protections.
Amendment No. 1, Health & Human Services Committee Amendment.
(Printed in Senate Journal, February 27, page(s) 325-327 and placed in members' bill
files.)
Amendment No. 2(L.002), by Senator Snyder.
Amend the Health and Human Services Committee Report, dated February 26,
2025, page 2, strike lines 36 through 38 and substitute "THE COMMISSION MAY
ADOPT RULES TO IMPLEMENT AND ENFORCE SUBSECTION (1)(g) OF THIS
SECTION.".
Page 3, strike lines 10 through 13 and substitute:
"(b) (I) AN INSURER OR INSURANCE PRODUCER SHALL NOTIFY AND
RECEIVE APPROVAL FROM THE DIVISION FOR A PILOT OR TESTING PROGRAM
PRIOR TO LAUNCHING THE PROGRAM.
(II) THE DIVISION SHALL APPROVE OR DENY A PILOT OR TESTING
PROGRAM NO LATER THAN THIRTY DAYS AFTER RECEIVING NOTIFICATION
PURSUANT TO SUBSECTION (2.5)(b)(I) OF THIS SECTION.".
Page 3, line 20, after "TERM;" insert "OR".
Page 3, line 29, strike "ENTITY; OR" and substitute "ENTITY.".
Page 3, strike lines 30 through 36.
Page 3, line 37 strike "RAFFLE,".
As amended, ordered engrossed and placed on the calendar for third reading and final
passage.
House Journal, March 20
1 SB25-058 be amended as follows, and as so amended, be referred to
2 the Committee of the Whole with favorable
3 recommendation:
4
5 Amend reengrossed bill, page 4, line 24, strike "COMMISSION" and
6 substitute "COMMISSIONER".
7
8 Page 4, line 25, strike "SUBSECTION (1)(g)" and substitute "SUBSECTIONS
9 (2) TO (2.7)".
10
11 Page 6, line 8, strike "OFFER, GIFT, OR DRAWING MADE OR CONDUCTED"
12 and substitute "OFFER OR GIFT MADE".
13
14 Page 6, line 13, strike "GIFT, ITEM, SERVICE, OR PRIZE RECEIVED OR WON"
15 and substitute "GIFT, ITEM, OR SERVICE RECEIVED".
16
17