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Committee clears proposal allowing insurers to provide higher-value risk-mitigation devices
Summary
A draft statute (RS3183) from the Department of Insurance to remove a $200 cap on insurer-provided risk-mitigation devices was accepted for introduction after lawmakers asked about consumer protections and rate uses for health or usage data.
The Idaho House Business Committee voted to introduce RS3183, a request submitted by the Department of Insurance to remove a dollar cap that previously limited insurers from providing risk-mitigation devices valued above $200.
Representative Jeff Cornelis (R-District 12, Nampa) presented the measure, saying it would clarify that entities can provide devices such as fitness trackers or water-leak meters if those devices help reduce loss. "This is a...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.
Director Dean Cameron of the Department of Insurance told the committee the department’s intent is to carve out these devices from a statutory unfair-trade-practices cap that currently references a $200 value limit. "We thought let's clear it up and make sure that it's perfectly legal," Cameron said, explaining that carriers have provided similar devices in other states and sought legal certainty in Idaho.
Representative Lance Birch asked whether the recipient requests the device and whether removing the $200 cap would permit insurers to provide devices of any value; Cornelis affirmed that recipients generally request the devices. Representative James Harris raised privacy and pricing concerns, asking whether collected health or usage data could be used to raise policy rates. Director Cameron answered directly: "No, they would not. This is at the request of the industry," and described the department’s intent to allow only items that mitigate risk and benefit consumers.
Representative Thompson moved to accept RS3183 for introduction; the committee approved the motion by voice vote.
Ending: The RS was introduced and will proceed through legislative drafting and committee processes; the Department of Insurance said the change is meant to remove ambiguity and preserve consumer and insurer benefits when devices meaningfully reduce risk.
