Ala. Admin. Code r. 482-1-163-.02

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-163-.02 - Definition Of Value-Added Service Or Product

(1) For purposes of this chapter, a Value-Added Service or Product meets the following criteria:

(a) The service or product is intended to

1. mitigate loss or provide loss control, or

2. assess risk, identify sources of risk, or develop strategies for eliminating or reducing those risks; or

3. has a nexus to or enhances the value of the insurance product.

(b) The service or product may be offered or provided to a policy/contract owner or insured/annuitant for free or at a discounted price.

(c) The service or product is incidental to the sale or servicing of an insurance policy or annuity contract.

(d) The service or product is offered or made available in a fair and non-discriminatory manner.

(e) Providing the service or product will not violate any statute, regulation, or order beyond those mentioned in this chapter.

(f) If the insurer has directly contracted with the policy/contract owner or insured/annuitant for the service or product, the policy/contract owner or insured/annuitant may discontinue the Value-Added Service or Product at any time.

(2) The Alabama Department of Insurance should be contacted if there is a question about this Regulation or any Value-Added Service or Product a company may offer.

Ala. Admin. Code r. 482-1-163-.02

Adopted by Alabama Administrative Monthly Volume XXXVII, Issue No. 11, August 30, 2019, eff. 9/1/2019. Filed with LSA August8,2019. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-12-12, 7-12-14.