NAIC Makes Progress on Rebating Revisions

State interpretation and application of anti-rebating laws varies, and, about a year ago, those variations prompted the National Association of Insurance Commissioners’ (NAIC) Innovation and Technology Task Force, led by Commissioner Jon Godfread (ND), to further investigate the section of the Unfair Trade Practices Act (Model #880) that addresses rebating.

Prompted by that investigation, the Task Force tasked a small drafting group of regulators and industry members, including PIA National, with making initial rounds of edits to the rebating part of the model, which is contained in Section 4(H). During that time, we submitted comments on draft revisions as they were circulated within the group.

In June, the Drafting Group was disbanded, and its final product, which was still subject to further revision, was placed before the Innovation and Technology Task Force for review and comment by members and interested parties in the open setting in which the NAIC typically proceeds. We submitted comments in July and August in response to several drafts.

PIA National looks forward to continuing to work with the Innovation and Technology Task Force as it modernizes Section 4(H) of the NAIC’s Unfair Trade Practices Model Act on the issue of rebating.