Utilities With Retail Choice Seek to Offer Insurance Products to Customers
November 13,2014
The FirstEnergy Ohio utilities have sought authorization to market to their customers third-party insurance products.
Ohio Edison, Toledo Edison, and Cleveland Electric Illuminating have applied at PUCO to add to the "Special Customer Services" offered under their tariff the, "arranging for the offering of insurance products and related services to customers by insurance companies or producers."
The utilities said that such products may include, by way of example, the following:
• Disaster Protection Plan: pays insurance deductible reimbursement, emergency cash payments, and locksmith services in the event of damage to the customer's home.
• Personal Disaster Recovery Plan: pays mortgage payments, insurance deductible reimbursement, and other benefits while the customer's home is temporarily uninhabitable.
"Such products and services will provide customers with additional options to protect themselves from the financial hardships associated with unforeseen emergency expenses, thus enhancing a customer's choice of products and services available to them," the utilities said.
"Such products will be part of a utility program to bring options to their customers for the purchase of products and services and will be administered in a similar fashion," the utilities said.
"Pricing for the insurance products and related services will be established by the insurance companies or insurance producers. The Applicants will not set the pricing for the products or services. The Applicants will provide no subsidy for the products or services. Costs incurred in the conduct of the program will be borne by the insurance companies and insurance producers, and the Applicants will receive compensation for billing and administrative services they provide to the insurance companies in connection with the program," the utilities said.
"Further, a disclaimer will be included in program literature that the insurance products and services are not being offered by the Applicants, but are offered to customers by the insurance companies and insurance producers, and that such products are available from other vendors and do not have to be purchased in order to receive electric service," the utilities said.
"Applicants are not proposing to offer or sell any insurance product or service as part of this Application. Customers will be under no obligation to purchase any insurance products or related services, and if a customer does purchase an insurance product or related service, the customer may cancel the product at any time without penalty or charge," the utilities said.