Rebating

  • Anti-Rebating Laws
  • Rick Nelson
  • Peter Katt
  • California Lawsuit
    • Judy Faucett
    • James Hunt
  • 1991 – Sun Sentinel – Insurance Industry Frowns on Cutting Commission for Client, [Rebating] – [link]
  • 1991 0613 – GOV – Insurance Competitive Pricing Act of 1991 – [PDF-237p – GooglePlay. No Video]
  • 1993 0326 – NYT – Insurers Cited on Barring Rebates, By Peter Kerr – [link]
  • Rep. Lehman
    • …stated that he looks forward to working with the NAIC and developing some sort of standard regarding rebate reform especially as agents become licensed in multiple states and they need to know multiple state rebate laws.
    • …noted he has heard debates over whether a frozen turkey would be considered a rebate, in addition to whether an agent could send flowers to a client’s funeral without violating rebate laws.
  • Supt. Cioppa noted that when passing Maine’s rebate reform law he told legislators that for egregious actions there are always unfair practices laws that can be used to address those actions and therefore rebate laws are not needed for that purpose.
  • Rep. Lehman noted that rebating laws are really protecting agents from each other because you never hear a consumer complain that they got a better deal.
  • Dir. Cameron stated
    • …that there was a situation in Idaho several years ago during the “universal life craze” when a couple of agents went to prison because they were rebating the entire first year premium.
    • They had a carrier that was paying them more in commission than the entire first year premium and of course they were not paying taxes on anything either.
    • …stated that he thinks rebate statutes are way out of date and need to be reviewed but it is important to be careful when getting into actually paying for part of the premium of the product that they are selling.

2019 12 – NCOIL – TENTATIVE GENERAL SCHEDULE NCOIL ANNUAL MEETING – 181p

  • Life insurance placed inforce at minimal cost (for example, by rebating of the selling agent’s commission) has been implicated in some insured murders.27
  • 27. According to Kwitny (1974), commission rebating may have been involved in the Mullendore case.
    • 1974 – Book – The Mullendore Murder Case, by Kwitny, Jonathan

2003 – JIR / NAIC – The Murder of the Insured By the Beneficiary: Attempting to Quantify One Moral Hazard Relating to Life Insurance Contracts – 29p

  • (p4) – After a brief report on the demographics of the respondents, the Subcommittee will review responses in four areas:
    • 4. Section 4 – Fraud – A review of various fraud mitigation practices employed to investigate or otherwise deal with suspected fraud including rebating activity.

2015 03 – SOA – Report of the Society of Actuaries Financial Underwriting and Fraud Prevention Survey Subcommittee, 2015-fraud-prevention-survey – Society of Actuaries – 67p