Yes, so long as receipt of the gift or service is not contingent upon purchase of a policy. Generally, no. However, the rebating laws allow giving something of value where it is specified in the insurance contract. Also, a producer quoting life insurance may give an applicant an article of merchandise having an invoice value of $5.00 or less, and a producer may give an applicant or an insured under a property-casualty insurance policy an article of merchandise having an invoice value of $50.00 or less. A producer may only offer entry into a drawing if the gift (prize) offered has a value of $5.00 or less for life insurance applicants, or $50.00 or less for property-casualty insurance applicants. No, the statute does not allow an agent to return any part of the premium owed as it would be considered an illegal inducement for the purchase of insurance. It depends on the business model. The law allows an insurance producer to pay or assign commissions to a third party unless the payment violates Section 2024. The following may assist you when developing a business model: A producer may donate money to a charitable organization as long as:
We strongly recommend that you consult with your attorney when considering a charitable or community donation program to determine compliance with the law. Any program should be reviewed in accordance with sections 1240, 2024, 2066, 2070, 2024a, 2024b and 1207(3) of the Insurance Code. The answers provided are not meant to be a substitute for legal advice. SummaryInsurers and insurance producers may implement advertising or promotional programs that permit the giving of prizes, goods, wares, gift cards, gift certificates or merchandise not exceeding $100 in value in the aggregate per person in any 12-month period. The advertising or promotional program must be offered to all insureds or prospective insureds under similar qualifying circumstances. See RCW 48.30.140 and RCW 48.30.150 (leg.wa.gov). GuidelinesThe advertising or promotional program must be rationally related to the business of the insurer or producer. The insurer or producer should implement record-keeping processes to be able to provide evidence that the $100 per-person limit for any consecutive 12-month period has not been exceeded. Examples1. An insurance producer provides a floral arrangement for the funeral services of the spouse of the insured. This is the producer's practice whenever an insured’s spouse or other close family member dies where the insured had insurance through them with an annual premium totaling $5,000 or more. The gifting of this floral arrangement appears to be a component of an advertising or promotional program contemplated by the exception to the anti-rebating and illegal inducement statutes. The criteria for sending it is rationally related to a legitimate business purpose and appears to be offered to all insureds who fit the criteria. Thus, it is permitted if the value of the floral arrangement, taking into consideration the value of any other prizes, goods, wares, gift cards, gift certificates or merchandise given to the insured client during a 12-month period, does not exceed $100 in value for that 12-month period. See RCW 48.30.140(4) (leg.wa.gov). 2. An insurance producer gives back a portion of the fee charged to their insured client. As stated, this appears to be a rebate and is a violation of the anti-rebating and illegal inducement statutes. But if the producer receives a commission along with the fee, they may offset or reimburse the insured all or a part of the fee. An explanation of any offset or reimbursement should be provided on the compensation disclosure form at the time the fee is charged. See RCW 48.17.270 (2)(c) and (3)(c) and RCW 48.30.140(5) (leg.wa.gov). 3. An insurance producer offers to give the 100th person who comes in for a quote on insurance coverage a free iPad. This is not permitted because the value of the iPad exceeds $100. See RCW 48.30.150(1)(c) (leg.wa.gov). 4. An insurance producer gives prospective new clients a $50 gift card. This is permitted, but the producer should keep a record of how much each prospect receives to ensure the $100 limit in the aggregate is not exceeded during the 12-month period for each prospect receiving a gift card or other prize, goods, etc. See RCW 48.30.150(3) (leg.wa.gov). 5. An insurance producer takes their insured client, along with the client’s family—spouse and two children—to dinner and picks up their part of the tab totaling $350. This would be permitted if the value of any person’s dinner did not exceed $100 and if the producer had not previously—during the preceding 12-month period—provided the client and any of those members of the client’s family who dined at the producer’s expense, any prizes, goods, wares, gift cards, gift certificates or merchandise that, when their value is added to the value of each’s dinner, results in a total value in excess of $100. In addition, paying for the dinner of insureds and their families must be part of a promotional program that the producer offers to all insureds under similar qualifying circumstances. See RCW 48.30.140(4) (leg.wa.gov). 6. An insurance producer writes a large commercial policy for a business and gives the leadership team tickets to a sporting event. The value of each ticket is $75. This would be permitted if the producer had not previously—during the preceding 12-month period—provided members of the leadership team any prizes, goods, wares, gift cards, gift certificates or merchandise that, when their value is added to the value of the member’s ticket, results in a total value in excess of $100. In addition, giving sporting event tickets to leadership teams of commercial business clients must be part of a promotional program that the producer offers to all insureds under similar qualifying circumstances. See RCW 48.30.140(4) (leg.wa.gov). Please note that the cost of the ticket may not be the sole factor in determining its value. Which of the following is not allowed in credit life insurance?life
Which of the following would you find in the conditions section of an insurance policy?Policy Conditions — the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.
Who among the following is not considered to be a producer?So the correct option is 'Agaricus'.
What is the purpose of insurance risk is defined as?Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.
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Which of the following would be considered an illegal inducement to purchase insurance?
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