Rebating, Incentives, and Insurance Leads

[Norwayguy]

Mike,

As I am sure many agents don't like incentivized leads because they make for bad leads. But I am really taking your post in a different light in that I believe you are trying to scare agents away from your competitor by leading us to believe we may get in hot water with the DOI. I do not like scare tactics.

 

[JMO Fan]

Rebating is illegal only in some states, perfectly legal in others.

False. Rebating is only legal in California, and it still violates California laws against unfair discrimination, so it really isn't feasible. FL supposedly permits it, but the law has so many requirements that it is virtually impossible to create the legal filing that's required to be permitted to do it.

States don't catch it often, because consumers like it when they get a better deal (and won't snitch). Consumers who don't get a rebate don't know it's possible. Agents aren't often personally audited by state regulators, and it would be hard to find anyway.

Driving 75 in a 55 is illegal even if the cop doesn't stop you. Some agents have integrity. Others think anything's OK as long as you don't get caught.

 

[djs]

Legal or not, as an agent, this isn't a rebate. It's only a rebate if it's tied to people writing business with you. This deal isn't, it's tied to doing business with anyone.

Legit? Probably not. But it's not an issue an agent needs to worry about, except as Mike is trying to point out, who wants to deal with incentivized leads?

This isn't much different than if I give a car dealer a $25 gas card for every referral they send me, as long as I do it regardless of whether or not I write the business.

Dan

 

[STIBROKER]

I know its illegal to host/post net quotes trademark logo on your site like your doing with their banners......

 

[MikeLevy]

Legit? Probably not. But it's not an issue an agent needs to worry about, except as Mike is trying to point out, who wants to deal with incentivized leads?

And if it's not legit, is it legal to charge for these leads, or should these particular leads immediately be subject to credit under the credit policy? I don't know. I'm just asking a question.
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I know its illegal to host/post net quotes trademark logo on your site like your doing with their banners......

Only if used in a trademark capacity.

 

[djs]

And if it's not legit, is it legal to charge for these leads

This is why I don't buy internet leads, they all suck. Okay, every once in a while I want to write some extra business, I'll try them out again, I'm quickly reminded why I shouldn't do business with internet lead vendors.

Other agents may have different results.

What irks me the most is when leads are falsely input leads into systems, like some affiliates have been known to do. This wastes my money and my time. Not any longer though, due to this problem, I've quit buying internet leads.

Dan

 

[MikeLevy]

False. Rebating is only legal in California, and it still violates California laws against unfair discrimination, so it really isn't feasible. FL supposedly permits it, but the law has so many requirements that it is virtually impossible to create the legal filing that's required to be permitted to do it.

States don't catch it often, because consumers like it when they get a better deal (and won't snitch). Consumers who don't get a rebate don't know it's possible. Agents aren't often personally audited by state regulators, and it would be hard to find anyway.

Driving 75 in a 55 is illegal even if the cop doesn't stop you. Some agents have integrity. Others think anything's OK as long as you don't get caught.

Great post. Great summary on the law.

States rarely catch rebating because it is done on the "down low" and only amongst a small number of agents. However, those neon orange banners aren't exactly on the "down low" and I imagine they will catch someones attention at some DOI in some state eventually.

Hypothetically speaking, the states could get a hold of Netquote's customer list and go from there. I am not an authority and no one should take this as legal advice, but I don't think the agent should be responsible unless they knew about it in advance and knew the lead they sold came from an incentive deal like that. I think any responsibility should fall on the one that is in charge of the program.

I imagine agents who are with the larger captive companies might know or be able to find out for sure as those companies often have an approved vendor list and have run it through their legal department. Maybe somebody will post what they have been told.

 

[djs]

Hypothetically speaking, the states could get a hold of Netquote's customer list and go from there

Are you trying to scare agents away from Netquote? Anyone can call a carrier and see if they would even waste time answering this question.

Yes, I understand you are trying to help your cause.

Dan

 

[MikeLevy]

This isn't much different than if I give a car dealer a $25 gas card for every referral they send me, as long as I do it regardless of whether or not I write the business.

The car dealer isn't the one buying the insurance. The car dealer is acting as a lead generator in that capacity and you are paying for the lead. That is different from giving the person the car dealer sent you a gas card, which would be more analogous.
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Are you trying to scare agents away from Netquote? Anyone can call a carrier and see if they would even waste time answering this question.

Yes, I understand you are trying to help your cause.

Dan

I think I answered that in the next sentence:

"I am not an authority and no one should take this as legal advice, but I don't think the agent should be responsible unless they knew about it in advance and knew the lead they sold came from an incentive deal like that. I think any responsibility should fall on the one that is in charge of the program."

I also said this in response to your other post:

Quote:
Originally Posted by djs
Legit? Probably not. But it's not an issue an agent needs to worry about, except as Mike is trying to point out, who wants to deal with incentivized leads?

And if it's not legit, is it legal to charge for these leads, or should these particular leads immediately be subject to credit under the credit policy? I don't know. I'm just asking a question.

 

[STIBROKER]

Really....I will send net quotes a link to this thread and see if its cool with them......

Only if used in a trademark capacity.