PROPERTY-CASUALTY INSURER: ALLOW GIFT

TO CUSTOMER OF $100 OR LESS

House Bill 5609 as introduced

Sponsor:  Rep. Leslie Love

House Committee:  Insurance

Complete to 2-21-18

SUMMARY:

House Bill 5609 would amend the Insurance Code to increase the value of a gift an insurer can give to a customer.

Currently under the Code, a property-casualty insurance company can give an insured or applicant an article of merchandise with an invoice value of $10 or less. The bill would allow for the giving of an article of merchandise with a cost to the insurer of $100 or less.

As under current law, the gift would not be construed as being prohibited under Section 2024, 2066, or 2070 of the Code, which generally prohibit unfair methods of competition or deception, as well as the offering and acceptance of certain types of rebates and inducements.

MCL 500.2024b

FISCAL IMPACT:

The bill would not have a fiscal impact on the Department of Insurance and Financial Services.

                                                                                        Legislative Analyst:   Patrick Morris

                                                                                                Fiscal Analyst:   Marcus Coffin

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