Pennsylvania Enacts Exception To Rebating / Inducement Laws

Pennsylvania Enacts Exception To Rebating / Inducement Laws

May 24, 2018

Joining a majority of states, Pennsylvania recently enacted a "de minimis exception" to its rebating and inducement laws. Pennsylvania law generally prohibits providing policyholders any valuable consideration or inducement which is not specified in the contract of insurance. However, Pennsylvania's new de minimis exception permits producers and insurers to spend as much as $100 annually on an insured or potential insured to market insurance so long as the offer is not contingent on the purchase of insurance and does not constitute "money." This new law is effective July 3, 2018.

Saul Ewing Arnstein & Lehr attorneys discuss in this alert.