PROPERTY-CASUALTY INSURER: ALLOW GIFT

TO CUSTOMER OF $10 OR LESS

House Bill 5332

Sponsor:  Rep. Richard Ball

Committee:  Insurance

Complete to 10-19-05

A SUMMARY OF HOUSE BILL 5332 AS INTRODUCED 10-19-05

The bill would amend the Insurance Code to allow a property-casualty insurance company to give a customer (an insured or applicant) an article of merchandise with an invoice value of $10 or less.

Specifically, the bill says that beginning January 1, 2006, such a gift is not to be construed as prohibited under Sections 2024, 2066, or 2070 of the code.

Section 2024 deals with unfair methods of competition and prohibits rebates and special inducements in the sale of life insurance, life annuities, and accident and health insurance.  Section 2066 addresses the offering of rebates and illegal inducements generally.  Section 2070 generally prohibits the acceptance of rebates and illegal inducements.

MCL 500.2024b

FISCAL IMPACT:

There is no fiscal impact on the State of Michigan or its local units of government.

                                                                                           Legislative Analyst:   Chris Couch 

                                                                                                  Fiscal Analyst:   Richard Child

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.