COMMISSIONER'S CORNER

SEPTEMBER/OCTOBER 2021


Q. Do you recommend that everyone should have a life insurance policy?

A. The decision to purchase life insurance is a personal choice. Most importantly, I suggest that everyone considers their family and financial factors in making the decision whether purchasing life insurance is right for them. Life insurance is intended to protect against financial hardships such as loss of your income, funeral expenses, medical or nursing care expenses, and child care or education costs after your death. I suggest you talk with a trusted Wyoming licensed insurance agent or broker or your licensed financial planner about the options that are best for your situation. There are many life insurance products available. But generally, life insurance falls into two categories: term life and cash value life. Term life insurance guarantees payment of a death benefit if the covered person dies during the specified time frame or term. Cash value life insurance allows the policy holder to use the cash value of the policy for other purposes such as a loan. As with the purchase of any insurance product, be sure to use a Wyoming licensed agent and understand what your policy includes and excludes.

Jeff Rude, Wyoming Insurance Commissioner

https://sites.google.com/a/wyo.gov/doi/commissioner-s-corner/rude%20jeff%20%282%29.JPG?attredirects=0

Commissioner

Jeffrey P. Rude

COMMISSIONER'S CORNER - PRODUCER QUESTION

Q. Can the Department of Insurance provide an opinion whether an insurer is engaging in rebating or improper promotional or marketing activities?

A. If you are an insurer or producer, you can submit a detailed written proposal to the department for review. Please allow reasonable time for a review to be completed before instituting a program that might be considered a violation of state law.

Below are the applicable Wyoming statutes:

W.S. § 26-13-102. Unfair methods and deceptive acts prohibited.

No person shall engage in this state in any trade practice which is defined in this article as or is determined pursuant to this article to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.

W.S. § 26-13-110. Rebates and favors as to life, disability and annuity contracts prohibited.

(a) Except as otherwise provided by law, no person shall:

(i) Knowingly permit or offer to make or make any contract of life insurance, life annuity or disability insurance, or agreement as to that contract other than as expressed in the contract issued thereon;

(ii) Pay, allow or give or offer to pay, allow or give in any manner as inducement to the insurance or annuity:

(A) Any rebate of premiums payable on the contract;

(B) Any special favor or advantage in the dividends or other benefits thereon;

(C) Any paid employment or contract for services of any kind; or

(D) Any valuable consideration or inducement not specified in the contract.

(iii) In any manner give, sell or purchase or offer or agree to give, sell, purchase or allow as inducement to the insurance or annuity or in connection therewith, and whether or not to be specified in the policy or contract, any agreement of any form or nature promising:

(A) Returns and profits;

(B) Any stocks, bonds or other securities, or interest present or contingent therein or as measured thereby, of any insurer or other corporation, association or partnership; or

(C) Any dividends or profits accrued or to accrue thereon.

W.S. § 26-13-112. Unfair discrimination, rebates and favors prohibited for property, casualty and surety insurers.

(a) No property, casualty or surety insurer or any employee or representative thereof, and no broker or agent shall pay, allow or give, or offer to pay, allow or give, in any manner, as an inducement to insurance, or after insurance has been effected, any valuable consideration or inducement of any kind not specified or provided for in the policy, except to the extent provided for in an applicable filing with the commissioner as provided by law.