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Rebating & Discrimination


Rebating & Discrimination

​Rebating = Gifts to current and prospective clients
Watch this two-minute video that explains what gifts an agent or broker can give to prospective and current clients.

Note: Effective August 1, 2012, Ins. Law Section 232​4 changed to eliminate the requirement that the "valuable consideration" have the agent's advertisement "conspicuously stamped" on the article. Also, the maximum permissible value for a gift was increased from $15 to $25.


Q. Can an insurance agency raffle off an iPad or some other highly coveted gadget without violating the laws against rebating?

A. Yes, if the raffle is open to the general public (that is, not limited to agency clients) and if entry in the raffle is not tied to the sale of insurance.