Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection topic
No spam. Unsubscribe anytime.
House approves Senate Bill 2 requiring clearer disclosure of disability insurance offsets
Summary
The House passed Senate Bill 2 to require insurers to disclose Social Security offset provisions for disability policies in bold on applications and policy documents. Sponsors characterized it as a consumer‑protection compromise agreed with insurers.
The House considered Senate Bill 2 (disability insurance amendments) on Feb. 4 and approved the measure, which would require companies selling disability insurance to clearly disclose, in bold print, any set‑offs such as Social Security offsets on applications and policy documents.
A presenter explained the bill as a consumer-protection measure intended to prevent surprise reductions in benefits when Social Security offsets apply, and said insurers had discussed and generally agreed to the language. Representative Nelson asked whether the change would affect guaranteed-renewal policies; the presenter clarified it applies to new policies or renewable policies and would not allow insurers to change existing benefits on currently in-force contracts.
The House opened the bill for final passage. The transcript records SB2 as having received '66 affirmative and 0 negative' votes and the bill was declared passed. Supporters described the measure as promoting transparency for purchasers and protecting honest local agents who explain offsets to customers.
