Nebraska: Rebate and Inducement Guidelines

The Nebraska Department of Insurance issued guidance (see page 6) relating to two commonly asked questions by producers involving rebates and inducements and payment of commissions.  

Key takeaway: Rebating and inducements are prohibited pursuant to Neb. Rev. Stat. § 44-361.

• A producer may provide a gift of nominal value to prospective insureds on a non-discriminatory basis, but that gift must not be conditioned on the purchase of insurance.
• Producers may not provide a rebate of the premium payable on the policy.  A rebate includes promising, allowing, giving or paying directly or indirectly any part of the policy premium.

Any questions or concerns regarding rebating, inducements or producer compensation may be directed to Kevin Schlautman at kevin.schlautman@nebraska.gov or via phone at 402-471-4707.

Be sure you read the entire update. Failure to comply with the regulation will lead to disciplinary action and may be grounds for termination of your appointment and/or contract with Athene.