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House Business Committee advances measure to remove $200 cap on insurer-provided risk-mitigation devices
Summary
The House Business Committee voted to introduce RS3183, a Department of Insurance-backed proposal to eliminate a $200 statutory cap that has limited insurers’ ability to supply devices such as fitness trackers or water-leak sensors to policyholders.
The Idaho House Business Committee on Monday voted to introduce RS3183, a proposal from the Department of Insurance to remove a $200 limit on risk-mitigation devices that insurers may provide to policyholders.
The change, presented by Representative Jeff Cornelis (District 12), would allow insurers to provide devices — examples given during the hearing included fitness trackers and water-leak detectors — without being restricted by a statutory $200 threshold. "This is basically a simple change to make it allowable for entities to provide a risk mitigation device like a Fitbit or a water meter that can detect leaks," Cornelis said.
Why it matters: Committee members and the department said the cap has created uncertainty about whether higher-cost devices are permissible. Dean Cameron, Director of the Idaho Department of Insurance, told the committee the department wanted to eliminate the ambiguity: "We thought let's clear it up and make sure that it's perfectly legal." The department framed the change as a carve-out that would not disturb the broader unfair trade practices rules that prohibit gifts or inducements of substantial value.
Committee discussion focused on consumer protections and the potential for insurers to use data collected by such devices. Representative Harris asked whether removing the cap could lead to insurers using health data to raise rates; Director Cameron responded, "no, they would not," and described the devices as risk-mitigation tools typically provided at the request of the insured. Representatives asked for clarity that the devices are generally provided to help reduce loss and benefit both insurer and insured.
Action: Representative Thompson moved to introduce RS3183. The committee carried the motion by voice vote.
The committee did not specify any implementation date or additional conditions in the hearing. No amendments were offered during the presentation; committee members asked the department questions and accepted the department's explanation that the proposal is intended only to remove the dollar cap for otherwise allowable risk-mitigation devices.
Looking ahead: RS3183 was formally introduced to the committee and will proceed through the legislative process; the hearing did not set any effective date for the change and did not record further procedural steps in the transcript.
