Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance Market Practices topic
No spam. Unsubscribe anytime.
Committee hears bill to raise gift limit for life/health solicitors from $5 to $50
Summary
Rep. Aragona and industry advocates testified in favor of House Bill 4179, which would increase the statutory gift limit for life and health insurance solicitors from $5 to $50 to match property-and-casualty rules and reflect current costs.
The Michigan House Insurance Committee heard testimony on House Bill 4179 on March 5, a measure that would raise the statutory limit on gifts that life and health insurance solicitors may offer to prospective customers from $5 to $50.
Representative Aragona, the bill sponsor, told the committee the change would create parity with the property-and-casualty sector and account for inflation since the $5 limit was set in 1986. “This simply adds parity and evenness across the board,” Representative Aragona said.
Chuck May, Government Affairs Chair for the National Association of Insurance and Financial Advisors (NAIFA) — Michigan, supported the bill and noted the $5 figure dates to 1986, citing a light anecdote about a coffee costing more than $5. May said raising the limit would remove an administrative burden on agents and better align treatment across product lines.
Vice Chair Carter asked how the $50 figure was determined. May said the $50 limit was adopted for property and casualty in 2018 and that sponsors chose the same threshold for parity rather than seeking a higher amount. Several industry groups registered support; committee staff read supporter cards from NAIFA Michigan, the American Council of Life Insurers, Big I Michigan and others.
The committee did not take a formal vote at the hearing; testimony and written support were recorded for committee consideration.
