NAII: Mass. Regs To Misread Phone Law
By Daniel Hays
NU Online News Service, Nov. 4, 4:03 p.m. EST?An insurance trade group representative said today that the rules being developed by a Massachusetts agency to implement a new law concerning telephone solicitations is a broad misreading of the statute.
"They are saying we'll just use a big net approach and throw it over anyone who has a telephone," commented Gerald L. Zimmerman, senior counsel for the National Association of Independent Insurers in Des Plaines, Ill. "We're clearly not the folks this law is intended to impact."
He made his comments concerning language being proposed by the Massachusetts Office of Consumer and Business Affairs that Mr. Zimmerman said would have the effect of requiring any business that telephones customers for any purpose to pay for a list of consumers who are registered on a "do not call" list.
The NAII contends as the rules are being proposed they would be unnecessarily burdensome to businesses.
"Although the Office of Business Affairs' proposal is an attempt to administer
the telemarketing solicitation law passed by the Massachusetts legislature this year, it disregards the exclusions spelled out in the law," said Mr. Zimmerman.
He said NAII had not opposed the new statute because the language in the law would exclude its members.
The business affairs office, he said, "exceeds its authority by going beyond the clear language and intent of the law."
In written testimony submitted to the Office of Business Affairs, NAII pointed out that the law's definition of the term "unsolicited telephonic sales calls" excludes those made in connection with an existing debt or contract, or calls to existing customers unless the customer has specifically stated they don't want to receive such calls.
Mr. Zimmerman said insurers commonly contact customers to clarify or update policy information or to check why a payment hasn't been received for an expiring policy.
"There is no legitimate public policy reason to require companies that only make calls to existing customers or in connection with existing contracts to register annually and pay a registration fee, especially in light of the very clear direction by the legislation that such communications are not to be regulated," NAII wrote.
"The law was designed to protect consumers from obnoxious calls by unsolicited pitchmen," Mr. Zimmerman said. "The [bureau] should rethink its regulation to reflect the intent of the law."
NAII said its members write more than 11 percent of Massachusetts' personal lines insurance market.
Mr. Zimmerman said that at this point insurers have no idea what the cost of implementing the rule would be.
"Typically a list comes out quarterly that you have to buy, but we don't know cost up front and the continuing and ongoing cost," he said. "Any time you want to make a call you have to take a look at this list."
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