Rebates

[LOGO] EARL R. POMEROY COMMISSIONER OF INSURANCE STATE OF NORTH DAKOTA STATE CAPITOL BISMARCK, NORTH DAKOTA 58505 701-224-2440 BULLETIN 85-5 TO: Lending Institutions/Insurance Agencies FROM: Earl R. Pomeroy, Commissioner of Insurance DATE: April 12, 1985 SUBJECT: Rebates Earl R. Pomeroy N.D.C.C. 26.1-04-03(8)(a) expressly prohibits the offer of a rebate of premium, either direct or indirect, or other offer of valuable consideration as inducement to sell insurance. The North Dakota Insurance Department considers the following practice to fall within the prohibition of the above-referenced section: An offer by a lending institution to reduce the interest rate on a loan, note or obligation to a borrower in exchange for the borrower's purchase of specified insurance coverages through an insurance agency owned, controlled by, or associated with said lending institution. In the event the Department, after investigation, determines the above act or practice is being used, the Department will initiate appropriate administrative action. ERP: jmm