26.1-04-06. Insured persons and applicants for insurance prohibited from accepting rebates - Exception

26.1-04-06. Insured persons and applicants for insurance prohibited from accepting

rebates - Exception.

1. An insurance producer or agent of any insurance or surety company, reciprocal,

benevolent society, or any other insurance organization or association, however

constituted or entitled, may not grant, and an insured person or party or applicant for

insurance, either directly or indirectly, may not receive or accept, or agree to receive or

accept, any rebate of premium or of any part thereof, or all or any part of any

insurance producer's commission thereon, or any favor or advantage, or any share in

any benefit to accrue under any insurance policy, or any other valuable consideration

or inducement other than such as may be specified in the policy, except as provided in

an applicable filing which is in effect under the provisions of the laws regulating

insurance rates or except as provided under subsection 2.

2. Notwithstanding any other provision in this section, if the cost does not exceed an

aggregate retail value of one hundred dollars per person per year, an insurance

producer may give a gift, prize, promotional article, logo merchandise, meal, or

entertainment activity directly or indirectly to a person in connection with marketing,

promoting, or advertising the business. As used in this subsection, "person" means the

named insured, policy owner, or prospective client or the spouse of any of these

individuals, but the term does not include a certificate holder, child, or employee of the

named insured, policy owner, or prospective client. Subject to the limits of this

subsection, an insurance producer may give a gift card for specific merchandise or

services such as a meal, gasoline, or car wash but may not give cash, a cash card,

any form of currency, or any refund or discount in premium. An insurance producer

may not condition the giving of a gift, prize, promotional article, logo merchandise,

meal, or entertainment activity on obtaining a quote or a contract of insurance.

Notwithstanding the limitation in this subsection, an insurance producer may make a

donation to a nonprofit organization that is exempt from federal taxation under Internal

Revenue Code section 501(c)(3) [26 U.S.C. 501(c)(3)] in any amount as long as the

donation is not given as an inducement to obtain a contract of insurance.