Bill > S271

This bill modifies North Carolina's insurance law to clarify and expand permitted trade practices related to insurance rebates and value-added services. The bill repeals certain existing provisions and introduces new allowances for insurers and insurance producers, including the ability to offer value-added products or services at no or reduced cost under specific conditions. These services must be primarily designed to support goals like loss mitigation, risk assessment, health enhancement, financial wellness, and claim cost reduction. The bill permits insurers to provide noncash gifts or services up to $250 per policy term, conduct drawings or raffles with certain restrictions, and engage in arrangements that do not violate federal banking regulations. The new provisions require that such offerings be based on objective criteria, not be unfairly discriminatory, and provide clear customer information. The bill also allows for pilot programs where insurers may offer services they believe meet the criteria but lack complete evidence. Additionally, the bill clarifies that these new practices do not constitute prohibited rebates or inducements, and the changes will apply to insurance contracts issued, renewed, or amended after the bill becomes law.

https://www.ncleg.gov/BillLookUp/2025/S271