Iowa Bulletin Prohibits All Rebates

NAMIC has learned from its state trade association partner, the Iowa Insurance Institute, that the Iowa Insurance Division has issued Bulletin 08-11, which bans any possible rebate to a policyholder.

Mark Johnston, NAMIC’s Midwest state affairs manager, summarized the bulletin saying: “The division announced that Iowa law broadly prohibits rebates offered to a policyholder or potential policyholder that are not specifically incorporated into the policy and made part of its pricing. Because there are no exceptions, the division concluded that carriers and licensed producers are forbidden from offering any good or service not specifically incorporated into the policy.”

The division also said it is seeking input on potential legislation for the 2009 session to address this issue.

Johnston said: “NAMIC will take an active role in the development of any legislation. In addition, we are seeking additional guidance from the division on questions that are raised by the bulletin.”

Posted: Tuesday, July 01, 2008 12:00:00 AM. Modified: Tuesday, July 01, 2008 3:55:00 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.