GA Expanded Exceptions on Rebates and Inducements
The Georgia Department of Insurance has expanded the exceptions on rebates and inducements.
An insurance company or producer may offer or provide a value-added product or service at no or reduced cost when such product or service is not specified in the policy of insurance when the value-added product or service relates to the insurance coverage, is offered in a manner that is not unfairly discriminatory, the availability is based on objective criteria, the cost for the value-added product or service is reasonable in comparison to the premiums or insurance coverage and the value-added product or service is primarily designed to:
- Provide loss mitigation or loss control;
- Reduce claim costs or claim settlement costs;
- Provide education about liability risks or risk of loss to persons or property;
- Monitor or assess risk, identify sources of risk or develop strategies for eliminating or reducing risk;
- Provide post-loss services; or
- Encourage behavioral changes to reduce the risk of death or disability
If the producer does not have sufficient evidence but has a good-faith belief that the value-added product or service will achieve the purpose for which it was primarily designed, the producer may offer or provide a value-added product or service in a manner that is not unfairly discriminatory as part of a pilot program for no more than a year. The producer must notify the Commissioner prior to implementing the pilot program; and may proceed with the pilot program unless the Commissioner objects in writing within 21 days of notice.
If you have a hierarchy of producers, you must share this e-mail with any producers who may not have received it.