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.
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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.
9 (2009) dated March 3, 2009 to provide advice and guidance to licensees regarding the kinds of services can be provided without violating the anti-rebate laws of the state of New York.
The discounted loan (financial services) constituted far and away the greatest fraudulent disregard of state anti-rebate laws in the history of my three decade career.
The state anti-rebate laws prohibit not only the direct kick-back of commissions to the policy buyer, such as where the life insurance agent receiving the commission writes a check back directly to the buyer, but also indirect payments, such as where the commission is used to provide something of value to the buyer like a below market loan.
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