Question About Rebating

[KidsGotHeart]

I'm confused on how rebating works. You can take a client out for king crab but you can't give them a ten dollar gift card to hear your presentation?

 

[BlockO]

Re: Question About Rebatingq

where are you from? rebating laws are very state specific. what is legal in some states may not be in others.

 

[KidsGotHeart]

Re: Question About Rebatingq

Alabama... . ..;:;(;:.?.:,

 

[AnonymousOne]

Re: Question About Rebatingq

(Many states)
Giving $10 to hear a presentation isn't rebating.
Giving $10 after a policy is bought is rebating.

 

[VolAgent]

Re: Question About Rebatingq

Just food for thought...

If I have to bribe you to listen to me, just how interested are you?

Buying prospects a meal is a waste of money. Save it for clients. Same with other bribes, save it for someone who has already show they value you, your expertise and your time.

Generally, as long as you give it to anyone regardless of whether they buy or not, it isn't rebating. As always, check with your DOI and CMS may have other regulations for their regulated products.

 

[xrac]

Re: Question About Rebatingq

Alabama... . ..;:;(;:.?.:,

Here is what Alabama says:





No person shall knowingly make any agreements other than as plainly expressed in the contract issued. Producers cannot offer to pay any rebate of premiums or promise or give anything of value whatsoever not specified in the contract.

 

[G5reality]

Re: Question About Rebatingq

You can legally rebate in CA and FL. The key is to be non-discriminatory.


I offer a rebate of 50% of the 1st year commissions on ALL life insurance policies that are paid in Annual premium mode. Most pay monthly and get no rebate.

 

[blue_wynd]

Re: Question About Rebatingq

You can legally rebate in CA and FL. The key is to be non-discriminatory.


I offer a rebate of 50% of the 1st year commissions on ALL life insurance policies that are paid in Annual premium mode. Most pay monthly and get no rebate.

So what happens if they pay annual, get that rebate from you then cancel right after?

 

[G5reality]

Re: Question About Rebatingq

So what happens if they pay annual, get that rebate from you then cancel right after?

?
Why would anyone do that?

 

[blue_wynd]

Re: Question About Rebatingq

?
Why would anyone do that?

So they can make some money of it. 11 months premium refund plus your 50%. They come out in the green. Maybe I am too cynical and overthinking it?