First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0364.01 Renee Leone x2695
SENATE BILL 25-058
Senate Committees House Committees
Health & Human Services
A BILL FOR AN ACT
C
ONCERNING A MODEL ACT TO PROVIDE A FRAMEWORK THAT ALLOWS101
INSURANCE COMPANIES TO GIVE REBATES THAT MEET SPECIFIED102
CRITERIA TO MAINTAIN CONSUMER PROTECTIONS .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates the "Model Rebate Reform Act" to modernize the
law concerning insurance rebates by recognizing new insurance products
while maintaining necessary consumer protections. The bill allows an
insurer or insurance producer to give a gift valued under $250 in
connection with the marketing, purchase, or retention of an insurance
SENATE SPONSORSHIP
Snyder,
HOUSE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. contract and to conduct a free raffle or drawing with prizes valued up to
$500.
Additionally, the bill provides that an insurer or insurance
producer may give a free or discounted product or service in conjunction
with or related to an insurance contract if the product or service:
! Is intended to educate about, assess, monitor, control,
mitigate, or protect an individual against loss of life, health,
or property; or
! Has a nexus to or enhances the value of the insurance
benefits.
Next, the bill provides that an insurer or insurance producer may
provide an additional free or discounted service if the service is at least
tangentially related to an insurance contract or the administration of an
insurance contract, the receipt of the service is not contingent on the
purchase of insurance, and the service is offered on the same terms to all
potential insurance customers. Before the purchase of insurance, receipt
of a quote for insurance, or designation of an agent of record, the insurer
or insurance producer providing the service shall disclose in writing to the
recipient that receipt of the service is not contingent on the purchase of
insurance.
Lastly, the bill permits the commissioner of insurance to adopt
rules as necessary to effectuate the provisions of the bill, including
adjusting the financial limitations on gifts and prizes as necessary for
inflation.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 18 to article2
3 of title 10 as follows:3
PART 184
MODEL REBATE REFORM ACT5
10-3-1801. Short title. T
HE SHORT TITLE OF THIS PART 18 IS THE6
"M
ODEL REBATE REFORM ACT".7
10-3-1802. Purpose. T
HE PURPOSE OF THIS PART 18 IS TO8
MODERNIZE INSURANCE REBATE PROVISIONS TO RECOGNIZE NEW9
PRODUCTS BEING OFFERED BY THE INSURANCE INDUSTRY WHILE10
MAINTAINING NECESSARY CONSUMER PROTECTIONS .11
SB25-058-2- 10-3-1803. Definition. A S USED IN THIS PART 18:1
(1) "I
NSURANCE PRODUCER " HAS THE MEANING SET FORTH IN2
SECTION 10-2-103 (6).3
10-3-1804. Permissible gifts and prizes. (1) A
N INSURER, BY OR4
THROUGH ITS EMPLOYEE , AFFILIATE, INSURANCE PRODUCER , OR5
THIRD-PARTY REPRESENTATIVE, OR AN INSURANCE PRODUCER ACTING ON6
ITS OWN BEHALF, MAY:7
(a) O
FFER OR PROVIDE A GIFT IN CONNECTION WITH THE8
MARKETING, PURCHASE, OR RETENTION OF AN INSURANCE CONTRACT , AS9
LONG AS THE COST OF THE GIFT DOES NOT EXCEED TWO HUNDRED FIFTY10
DOLLARS PER YEAR PER PERSON; AND11
(b) C
ONDUCT A RAFFLE OR DRAWING , AS LONG AS THERE IS NO12
PARTICIPATION COST TO ENTRANTS AND THE PRIZES ARE NOT VALUED IN13
EXCESS OF FIVE HUNDRED DOLLARS .14
(2) A
GIFT OR PRIZE GIVEN PURSUANT TO SUBSECTION (1) OF THIS15
SECTION MUST NOT BE IN THE FORM OF CASH .16
10-3-1805. Permissible value-added service or activity. (1) A
N17
INSURER, BY OR THROUGH ITS EMPLOYEE , AFFILIATE, INSURANCE18
PRODUCER, OR THIRD-PARTY REPRESENTATIVE , OR AN INSURANCE19
PRODUCER ACTING ON ITS OWN BEHALF, MAY OFFER OR PROVIDE, FOR FREE20
OR AT A DISCOUNTED PRICE, A PRODUCT OR SERVICE THAT RELATES TO OR21
IS GIVEN IN CONJUNCTION WITH AN INSURANCE POLICY IF THE PRODUCT OR22
SERVICE:23
(a) I
S PRIMARILY INTENDED TO EDUCATE ABOUT , ASSESS,24
MONITOR, CONTROL, MITIGATE, OR PREVENT RISK OF LOSS OF AN25
INDIVIDUAL'S LIFE, HEALTH, OR PROPERTY; OR26
(b) H
AS A NEXUS TO OR ENHANCES THE VALUE OF THE INSURANCE27
SB25-058
-3- BENEFITS.1
(2) A
PRODUCT OR SERVICE OFFERED OR PROVIDED PURSUANT TO2
THIS SECTION IS EXEMPT FROM THE LIMITATIONS SET FORTH IN SECTIONS3
10-3-1804
AND 10-3-1104 (1)(g).4
10-3-1806. Services for free or for less than fair market value.5
(1) A
N INSURER, BY OR THROUGH ITS EMPLOYEE, AFFILIATE, INSURANCE6
PRODUCER, OR THIRD-PARTY REPRESENTATIVE , OR AN INSURANCE7
PRODUCER ACTING ON ITS OWN BEHALF , MAY OFFER OR PROVIDE A8
SERVICE NOT OTHERWISE IDENTIFIED UNDER SECTION 10-3-1805 FOR FREE9
OR FOR LESS THAN FAIR MARKET VALUE IF:10
(a) T
HE SERVICE IS AT LEAST TANGENTIALLY RELATED TO AN11
INSURANCE CONTRACT OR THE ADMINISTRATION OF AN INSURANCE12
CONTRACT;13
(b) R
ECEIPT OF THE SERVICE IS NOT CONTINGENT UPON THE14
PURCHASE OF INSURANCE; AND15
(c) T
HE SERVICE IS OFFERED ON THE SAME TERMS TO ALL16
POTENTIAL INSURANCE CUSTOMERS .17
(2) A
N INSURER, BY OR THROUGH ITS EMPLOYEE , AFFILIATE,18
INSURANCE PRODUCER , OR THIRD-PARTY REPRESENTATIVE , OR AN19
INSURANCE PRODUCER ACTING ON ITS OWN BEHALF , THAT OFFERS OR20
PROVIDES A SERVICE UNDER THIS SECTION FOR FREE OR FOR LESS THAN21
FAIR MARKET VALUE SHALL , BEFORE THE PURCHASE OF INSURANCE ,22
RECEIPT OF A QUOTE FOR INSURANCE, OR DESIGNATION OF AN AGENT OF23
RECORD, DISCLOSE CONSPICUOUSLY IN WRITING TO THE RECIPIENT THAT24
RECEIPT OF THE SERVICE IS NOT CONTINGENT ON THE PURCHASE OF25
INSURANCE.26
10-3-1807. Rules. T
HE COMMISSIONER MAY ADOPT RULES AS27
SB25-058
-4- NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS PART 18, INCLUDING1
ADJUSTING THE FINANCIAL LIMITATIONS SET FORTH IN SECTION 10-3-18042
(1)
AS NECESSARY FOR INFLATION.3
SECTION 2. In Colorado Revised Statutes, 10-3-1104, amend4
(1)(g) as follows:5
10-3-1104. Unfair methods of competition - unfair or deceptive6
practices. (1) The following are defined as unfair methods of7
competition and unfair or deceptive acts or practices in the business of8
insurance:9
(g) Rebates: Except as
PROVIDED IN PART 18 OF THIS ARTICLE 3 OR10
AS otherwise expressly provided by law, knowingly permitting, or11
offering to make, or making any contract of insurance or agreement as to12
such contract, other than as plainly expressed in the insurance contract13
issued thereon, or paying, or
allowing, or giving, or offering to pay,14
allow, or give, directly or indirectly, as inducement to such insurance or15
annuity, any rebate of premiums payable on the contract, or any special16
favor or advantage in the dividends or other benefits thereon ON THE17
CONTRACT OR ANNUITY , or any valuable consideration or inducement18
whatever not specified in the contract; or giving, or selling, or purchasing,19
or offering to give, sell, or purchase, as inducement to such insurance20
contract or annuity or in connection therewith WITH THE INSURANCE21
CONTRACT OR ANNUITY , any stocks, bonds, or other securities of any22
insurance company or other corporation, association, or partnership, or23
any dividends or profits accrued thereon ON THE STOCKS, BONDS, OR24
OTHER SECURITIES, or anything of value whatsoever not specified in the25
contract;26
SECTION 3. Act subject to petition - effective date -27
SB25-058
-5- applicability. (1) This act takes effect at 12:01 a.m. on the day following1
the expiration of the ninety-day period after final adjournment of the2
general assembly; except that, if a referendum petition is filed pursuant3
to section 1 (3) of article V of the state constitution against this act or an4
item, section, or part of this act within such period, then the act, item,5
section, or part will not take effect unless approved by the people at the6
general election to be held in November 2026 and, in such case, will take7
effect on the date of the official declaration of the vote thereon by the8
governor.9
(2) This act applies to conduct occurring on or after the applicable10
effective date of this act.11
SB25-058
-6-