SALT LAKE CITY (April 13, 2015) – The R Street Institute congratulated Utah Gov. Gary Herbert for today’s signing of H.B. 141, which will modernize arcane insurance terms and definitions.

Specifically, the law updates the state’s anti-rebating statute to clarify that a product offered free of charge to customers and non-customers alike cannot be considered an inducement. This clarification brings Utah’s law into conformity with the bulk of interpretive judgment concerning the widely adopted model promulgated by the National Association of Insurance Commissioners.

“We applaud Gov. Herbert for recognizing that innovation brings new conditions which could not have been predicted when laws were enacted,” said Ian Adams, R Street’s western region director. “As would be expected, the Internet and e-commerce have enhanced the quality of products and services offered to consumers and updating the Utah statue will allow all customers to harness the power of the Internet to work for them.”

By taking a permissive approach, the law will allow insurance brokers to offer online benefits portals, which are increasingly inseparable from insurance products themselves, without worrying about running afoul of the state’s anti-rebating statute.

“Enactment of this law represents a step in the right direction by narrowing the scope of largely outdated state anti-rebating insurance statutes,” said Adams.


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