05 AM 28
0572
ADOPTED
Senators
Hudgens of the 47th and Shafer of the 48th offered the following
amendment:
Amend
the Senate Insurance and Labor Committee substitute to HB 407 by inserting after
"violations;" on line 3 on page 1 "to permit insurers to provide food or
refreshments under certain circumstances to current or prospective clients
during sales presentations and seminars provided that no insurance or annuity
applications or contracts are offered or accepted at such presentations or
seminars;".
By
inserting after line 11 on page 2 the following:
"SECTION
2.
Said
title is further amended by striking subparagraph (b)(8)(C) of Code Section
33-6-4, relating to unfair methods of competition and unfair or deceptive acts
or practices, and inserting in lieu thereof a new subparagraph (b)(8)(C) to read
as follows:
'(C)
Nothing in subparagraphs (A) and (B) of this paragraph shall be construed as
including within the definition of discrimination or rebates any of the
following practices:
(i)
In the case of any contract of life insurance or life annuity, paying bonuses to
policyholders or otherwise abating their premiums in whole or in part out of
surplus accumulated from nonparticipating insurance, provided that any bonuses
or abatement of premiums shall be fair and equitable to policyholders and for
the best interest of the company and its policyholders;
(ii)
In the case of life or accident and sickness insurance policies issued on the
industrial debit or weekly premium plan, making allowance in an amount which
fairly represents the saving in collection expense to policyholders who have
continuously for a specified period made premium payments directly to an office
of the insurer;
(iii)
Making a readjustment of the rate of premium for a policy based on the loss or
expense experienced at the end of the first or any subsequent policy year of
insurance thereunder, which adjustment may be made retroactive only for the
policy year;
(iv)
Issuing life or accident and sickness insurance policies covering bona fide
employees of the insurer at a rate less than the rate charged other persons in
the same class;
(v)
Issuing life or accident and sickness policies on a salary-saving, payroll
deduction, preauthorized, postdated, automatic check, or draft plan at a reduced
rate commensurate with the savings made by the use of such plan;
(vi)
Paying commissions or other compensation to duly licensed agents or brokers or
allowing or returning dividends, savings, or unabsorbed premium deposits to
participating policyholders, members, or subscribers;
(vii)
Paying by an insurance agent of part or all of the commissions on public
insurance to a nonprofit association of insurance agents which is affiliated
with a recognized state or national insurance
agentś
association, which commissions are to be used in whole or in part for one or
more civic enterprises;
or
(viii)
Paying for food or refreshments by an insurer or an agent, broker, or employee
of an insurer for current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or
seminars;'.
SECTION
3.
Said
title is further amended by adding a new subsection (e) to Code Section 33-9-36,
relating to unauthorized premiums and unauthorized inducements, to read as
follows:
'(e)
Nothing in this Code section shall be construed as prohibiting the payment for
food or refreshments by an insurer or an agent, broker, or employee of an
insurer for current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or
seminars.'"
By
redesignating Sections 2 through 23 as Sections 4 through 25,
respectively.
By
striking "Sections 9 through 21" on page 24 and inserting in lieu thereof
"Sections 11 through 23".