Under current law, an insurer may not engage in any of the following unfair
trade or marketing practices: inducing a person to enter into an insurance contract
by offering benefits not specified in the policy; making an agreement of insurance
that is not clearly expressed in the policy; unfairly discriminating among insureds
by charging different premiums or by offering different terms of coverage except on
the basis of classifications related to the nature and degree of risk covered or the
expenses involved; attempting to influence an employer to refuse employment of an
individual or discharge an employee; or committing any unfair trade practice that
the commissioner defines by rule.

This bill allows an insurer to advertise, market, offer, or operate a wellness
program without violating an unfair trade or marketing practice. A wellness
program is designed to promote health or prevent disease by offering a reward to
insured individuals. If a wellness program contains no conditions for obtaining a
reward based on an individual satisfying a standard that is related to a health factor,
the wellness program is exempt from unfair trade or marketing practice laws if
participation in the program is available to all similarly situated individuals.
Alternately, a wellness program that is based on an individual satisfying a standard
that is related to a health factor is exempt from unfair trade or marketing practice
laws if it has all of the following qualities: the reward does not exceed 20 percent of
the cost of the coverage under the plan; the program is reasonably designed to

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promote health or prevent disease; all eligible individuals have the opportunity to
qualify for the reward at least once per year; and the reward is available to all
similarly situated individuals.