Insurance Commissioner to Enforce Rebate Prohibition in State
The Iowa Insurance Commissioner, Susan E. Voss, issued a bulletin to
insurance carriers in the state earlier this week noting that the Iowa
Insurance Division "continues to receive complaints regarding services,
products and memberships that are being offered in an insurance policy."
"Because there is no provision for exceptions to the prohibition
for rebates as stated in the Iowa Code sections
the Division finds
that any goods or services offered to a policyholder or prospective policyholder,
which are not specifically incorporated as part of the policy contract
and made a part of the pricing of the policy are rebates and therefore
are prohibited by law," she writes. "Therefore, effective [June
30], all carriers and insurance producers licensed and doing business
in Iowa shall cease offering any form of a good or service not specifically
incorporated into the policy as set forth in this Bulletin."
for full text of bulletin.
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