(DeWitt, New York, Nov. 14, 2013) — The Independent Insurance Agents & Brokers of New York (IIABNY) today applauded the final approval of a new measure that frees insurance producers to better serve their clients. New York Gov. Andrew M. Cuomo signed Senate Bill 2894A into law yesterday. IIABNY supported the bill’s passage in the New York State Legislature earlier this year.
IIABNY Chair of the Board Andrew Kaufman said, “We are very pleased that this bill has now become law. New York businesses need help controlling their costs. Insurance agents and brokers can now provide badly-needed assistance to them without having to worry about unintentionally violating the law.”
Every state prohibits insurance companies and producers from giving clients benefits that the insurance policy the client bought does not provide. States forbid this practice, known as “rebating,” to keep insurers and producers from treating similar clients in unequal ways. As competition has evolved over time, however, some limits on rebating have served more to inhibit good customer service than to prevent undesirable behavior.
The bill approved by the legislature and the governor applies to insurance agents and brokers selling group or blanket accident and health insurance policies, group health plans and health maintenance organization (HMO) contracts. It permits them to develop, implement and administer wellness programs for clients at no or a reduced charge. The programs must be incidental to group health insurance sold by the producer. The producer must provide the programs in a fair and nondiscriminatory manner to similar clients.
“Wellness programs are gaining importance to businesses of all sizes,” Kaufman noted. “Every organization wants to reduce health care and Workers’ Compensation costs. This legislation makes it easier for insurance producers to meet the needs of these businesses. We congratulate the governor and the members of the legislature for making this welcome change.”
The law took effect immediately upon the governor’s signature.
The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States. For more information, go to www.trustedchoice.com or www.iiabny.org.