How to Comply with Rebating Law Amendment
State lawmakers this spring sent to the governor two pieces of legislation which – effective Tuesday, July 3 – 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.