Thank you's for new life clients

[James]

From my understanding it is illegal to rebate here in California. Interpretation of course could mean the difference.

Please describe what "rebating" means to you?

Ever heard of Propostion 103?

Insure for Less Money

For the legal opinion by Florida and California by their respective Supreme Court when the Insurance Industry challenged, go here.

Finney, Falk, Lawrence-Berrey & Naught, PLLP, lawyers in Yakima, WA, Washington

Really should know your market a little bit better.

 

[Crabcake Johnny]

I got some clarification on rebating by talking to a compliance officer at the MD DOI and it was interesting.

In MD rebating is offering anything that would be considered an enticement to land the sale. This puts rebating before, not after the sale.

Remember, the client needs to be aware that there is a reward for signing up with you. However, after the sale is made if you simply stuck $20 or a $20 Best Buy card in the mail it's technically not rebating since you didn't offer the client any type of incentive to buy.

Now...our conversation did lead to a potential problem; expectation. This is when either word has gotten around that you send the gifts and now it's common knowledge. It doesn't have to be discussed the people simply know they'll be getting a gift. Now it's rebating.

For me I'm going to be sending travel mugs to all of my clients.

 

[bluemarlin08]

I send $25 gas cards to clients for referrals that I talk to. I have some clients that really work to send folks to me for the gas cards. I sent one client $200 gas card last month, his referrals generated 6 apps and 3400 AP.

 

[Crabcake Johnny]

That's fine - you can pay as much as you want for referrals as long as it's not tied to the sale.

I could show up at a trade show and offer $10 gas cards to everyone who fills out a quote form. It's not rebating but you'd get your ass kicked.

 

[James]

Rebating: Giving any valuable consideration, usually all or part of the commission, to the prospect or insured as an inducement to buy or renew. Rebating is prohibited by law.

Except for California and Florida.

 

[insuremojo]

According the CA DOI it IS illegal to rebate. Now maybe in real life things may be different but if you are rebating you better make sure you do the same for everybody to make sure you don't have any problems.

It looked like after perusing the articles that James posted there was a bit of a disagreement between the Supreme Court and the DOI as to whether it should be "illegal". I guess in my opinion it would be best served to be safe rather than sorry and just don't participate...besides I work hard for my money dammit! I'm not giving any of it back!

 

[James]

According the CA DOI it IS illegal to rebate. Now maybe in real life things may be different but if you are rebating you better make sure you do the same for everybody to make sure you don't have any problems.

It looked like after perusing the articles that James posted there was a bit of a disagreement between the Supreme Court and the DOI as to whether it should be "illegal". I guess in my opinion it would be best served to be safe rather than sorry and just don't participate...besides I work hard for my money dammit! I'm not giving any of it back!

Hummmm, let me see who has final say in the law? Gee, let me think about this, the DOI or the Supreme Court? Gee, maybe I should ponder that for a moment? I did, obviously the Supreme Court of the State overrides everything except for the Supreme Court of the Nation.

Now in reality, some are shock that the Rebating Laws of California hasn't took more effect then it has had so far. Is that a good thing or a bad thing, various people with good points fall both ways.

Yet there are actual agencies out there offering rebates openly on the internet in California for up to 50% which kind of puts the ax on the question is it or is it not legal.

 

[theinuranceguy]

Guys just so you know, this insurancelady .... shes actually my wife...

sorry to bust your bubble hun

 

[Imladris]

Yeh I had a friend who sold insurance for a while. When I told him of my idea to offer incentives for referrals (a gift card to the restaurant of choice if your friend purchases a policy) he told me that it was illegal. So does rebating apply only to the person to whom you are selling or also to the referral?

 

[MAPDJim]

When you join the IHIAA you'll see in member benefits a way to keep in touch with your clients, send brownies, cookies, gift cards and much more. All done in your own handwriting and with your actual signature, all cheaper than going to the store.

I don't want to pitch it on here so if you are not a member yet you should look into it. John is doing a great job and the Association is going to be a tremendous help to independent agents, new and old.

They are in the process of transitioning sites so I'm not sure which link to post. I'm sure John can follow up with the link when it's ready.