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H 72

INSURANCE – Amends existing law to provide additional exceptions to insurance discrimination and rebate provisions for value-added products or services.

68th Legislature, 1st Regular Session (2025)

Allows insurers to offer value-added products or services with certain safeguards to reduce discrimination, cover costs, and enhance value tied to insurance.

Reported Printed and Referred to Business
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Bill Summary · H 72

Summary of Idaho House Bill No. 72 (H 72) — Insurance Provisions

Overview

  • Bill: H 72
  • Introduced: January 28, 2025
  • Status: Reported Printed and Referred to Business
  • Subject: Insurance; Federal laws and relations; Government
  • Emergency/Effective Date: Declares an emergency; effective July 1, 2025

Purpose and Intent

H 72 amends Idaho Code 41-1315 to expand permissible practices related to discrimination and rebates in life, disability, and annuity policies. It creates explicit exceptions for certain value-added products or services offered in connection with insurance, and adds guardrails to ensure such offerings are fair, non-discriminatory, and disclosed to consumers. The accompanying fiscal note states the changes are clarifying in nature and are not expected to affect the state General Fund.

Key Provisions

1) Expanded exceptions to discrimination and rebate rules (Section 41-1315)

  • The bill adds an explicit exception for insurers or producers offering value-added products or services at no or reduced cost when:
    • The product/service relates to the insurance coverage and is primarily designed to achieve one or more of the following aims:
    • Loss mitigation or loss control
    • Reduction of claim costs or settlement costs
    • Education about liability risks or risk of loss
    • Risk monitoring, identification, or strategies to eliminate/reduce risk
    • Health enhancement
    • Financial wellness (e.g., education or financial planning)
    • Post-loss services
    • Incentives to encourage healthier behaviors or reduce risk of death/disability
    • Assistance in administering employee/retiree benefits
    • The cost to the insurer or producer is reasonable relative to the customer’s premiums or coverage
    • The customer is provided with contact information for questions about the product/service
    • Availability is based on documented, objective criteria and offered without unfair discrimination; the documented criteria must be maintained and producible to the Department of Insurance on request

2) Pilot/testing program provision

  • If an insurer or producer lacks sufficient evidence but reasonably believes a product/service meets the criteria, they may offer it as part of a pilot or testing program for up to one year.
  • Notification: insurer/producer must notify the Department of Insurance prior to launching and may proceed unless the department objects within 21 days of notice.

3) Regulatory authority

  • The Director of the Idaho Department of Insurance may adopt regulations, with legislative approval, to implement these practices and protect consumers. Regulations may address:
    • Consumer data protections and privacy
    • Consumer disclosure
    • Avoiding unfair discrimination

Fiscal Note

  • The legislation is expected to have no impact on the state's General Fund or other funds because it clarifies existing requirements rather than creating new programs. The fiscal note cites examples such as fitness trackers or water/leak detection devices and notes alignment with banking/loan act considerations.

Who Is Affected

  • Insurance companies, life/disability insurers, and producers offering life, disability, or annuity products in Idaho.
  • Policyholders and potential insureds as to how value-added products/services may be offered in relation to insurance coverage.
  • The Idaho Department of Insurance for regulatory oversight and potential data/privacy disclosures.

Procedural Timeline

  • Introduced: January 28, 2025
  • Action: Reported Printed and Referred to Business (January 29, 2025)
  • Next steps: If passed, the act would become effective July 1, 2025, with potential implementing regulations to follow.

Compiled from official sources — confirm details with the bill’s official record.

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