Apr 9, 2014

PIANH: Anti-rebating bill creates an uneven playing field for small businesses

CONCORD, N.H.-The Professional Insurance Agents of New Hampshire Inc. say they are opposed to a bill (H.B. 1177), which would give an unfair advantage to big insurance carriers marketing directly to customers, while restricting independent agents from offering customers the same incentives to work with them. The trade association, which represents professional independent insurance agents across New Hampshire, will submit its objection in testimony to the Senate Commerce Committee tomorrow, April 10, 2014.

"If passed, this amendment would create an uneven playing field in the New Hampshire insurance market," said PIANH past President Jeffrey Foy. "Insurers would be able to offer and entice customers with prizes that the independent insurance producer would not. In other words, H.B. 1177 creates a situation where insurers and producers would be playing the same game, but by different rules."

While PIANH opposes the current version of H.B.1177, the association does not oppose raising or eliminating the cap on contests, sweepstakes, raffles, or drawings if done so in a way that is uniform and universal. In keeping with the intent of H.B. 1177, PIANH says it will propose an amendment to the bill that ensures New Hampshires Insurance Law is enforced in a fair and equitable manner. PIANH suggests an amendment that would remove a cap currently in place across the board for insurers and producers alike.

"PIANH commends the Legislature for addressing this issue. While PIANH opposes H.B.1177 in its current form, PIANH would support H.B. 1177 with the addition of the amendment weve suggested," Foy said. "This proposed amendment preserves the intent of the original amendment and it would allow the independent producer to compete on an even playing field with insurers."

PIANH is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.

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