Bill > H356

This bill clarifies and expands the permitted trade practices for insurance rebates and value-added services in North Carolina. The legislation repeals certain existing provisions and introduces new rules that allow insurers and insurance producers to offer value-added products and services under specific conditions. These conditions include: ensuring the products or services are primarily designed to mitigate losses, reduce claim costs, provide education about risks, enhance health or financial wellness, incentivize behavioral changes, or assist in insurance administration. The bill sets strict guidelines for these offerings, such as ensuring the cost is reasonable compared to premiums, providing customer contact information, and maintaining objective criteria that are not unfairly discriminatory. Additionally, the bill permits insurers to offer noncash gifts or conduct drawings/raffles with limitations (such as a $250 value cap) and prohibits using words like "free" or "no cost" in insurance advertisements. Insurers and producers must ensure these practices do not serve as direct inducements to purchase insurance and are offered equitably. The bill will take effect immediately for most provisions, with a specific section on advertisement restrictions becoming effective on January 1, 2027.

Budget and Finance, Business and Industry, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H356