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.