Antirebate Law

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Antirebate Law

A law banning the practice in which an insurance agent gives a certain percentage of his/her commission to a policyholder as an incentive to buy a policy from him/her. An antirebate law is intended to encourage fair business practices in the insurance industry. Most U.S. states have antirebate laws.
References in periodicals archive ?
Anti-rebate laws interfere with discounts to consumers, preventing the cost of coverage to the insured from being lowered.
The proposition repeals California's anti-rebate law, making it legal for agents and brokers to reduce fees charged to, and share commissions with, clients.