State lawmakers pass rebating legislation
State lawmakers this week sent to the governor two pieces of legislation which, once signed into law, will allow producers and insurers to offer gifts of up to $100 to their clients and prospective clients.
Specifically, the legislation allows producers and insurers:
to offer or give to an insured or prospective insured, on an annual aggregate basis, any favor, advantage, object, valuable consideration or anything other than money that has a cost or redeemable value of less than or equal to $100.
The receipt of anything of value may not be contingent on the purchase of insurance.
Your IA&B government affairs team was successful in having the legislation amended to expressly allow producers to provide loss control services to their insureds without being labeled an inducement.
Once signed by the governor, the laws will take effect in 60 days. We will update our online resources on rebating and inducements accordingly.