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Committee hears proponents of prepaid legal plans bill; regulator says neutral
Summary
HB211 would exempt non‑indemnity prepaid legal plans from insurance regulation and move oversight to consumer protection; industry presenter LegalShield said plans are service contracts, while the Division of Insurance said it is neutral and that legislation is needed to change oversight.
Staff to Representative Neli Jimmy presented House Bill 211 May 11, describing it as a measure to exempt non‑indemnity prepaid legal plans from insurance regulation and add consumer protections specific to those plans.
Julia Jensen, chief legal and administrative officer at LegalShield, testified in strong support and described prepaid legal plans as service contracts — not insurance — that deliver access to licensed attorneys for a fixed monthly fee. "This is not insurance," Jensen told the committee, adding that treating plans as insurance increases cost and friction for consumers who rely on affordable monthly subscriptions.
Heather Carpenter, director of the Division of Insurance, said the division was neutral on the legislation but that statutory language is required to remove the plans from insurance oversight: "If these plans do not want to be regulated by the division, we need legislation," she said, citing long‑standing guidance from Department of Law.
Committee members asked about plan costs and consumer protections; Jensen said some plans begin at about $30 per month and provide a range of services. The bill was set aside for further consideration at a future meeting.
