Rebating and Discrimination/Prohibitions


New York Insurance Law 2324 prohibits authorized insurers, licensed agents or licensed brokers from sharing commissions and/or rebating to an insured or an employee of an insured to induce the insured to acquire or retain the insurance coverage acquired.

In response to the question as to whether a broker could quote a premium net of commission and add a service fee, the insurance departments general counsel concluded this would constitute unfair discrimination and rebating in violation of the law.


"This is not intended to be nor should it be construed as legal advice. Consult with your own legal counsel."