§ 4022a. Rebates prohibited for group insurance policies
(a) As used in this section, “group insurance” means any policy described in section 4041 of this title, except that it shall not include any small group policy issued pursuant to 33 V.S.A. § 1811.
(b) No health insurer doing business in this State and no insurance agent or broker shall:
(1) offer, promise, allow, give, set off, or pay, directly or indirectly:
(A) any rebate of or part of the premium payable on a group insurance policy, or on any
group insurance policy or agent’s commission on the premium or earnings, profits,
dividends, or other benefits founded, arising, accruing, or to accrue on or from the
premium;
(B) any special advantage in date of policy or age of issue;
(C) any paid employment or contract for services of any kind; or
(D) any other valuable consideration or inducement to or for insurance on any risk in
this State, or for or upon any renewal of any such insurance, that is not specified
in the health insurance plan; or
(2) offer, promise, give, option, sell, or purchase any stocks, bonds, securities, or
property, or any dividends or profits accruing or to accrue on them, or other thing
of value as inducement to insurance or in connection with insurance, or any renewal
thereof, that is not specified in the health insurance plan.
(c) No person insured under a group insurance policy or party or applicant for group insurance
shall directly or indirectly receive or accept or agree to receive or accept any rebate
of premium or of any part of the premium, or all or any part of any agent’s or broker’s
commission on the premium, or any favor or advantage, or share in any benefit to accrue
under any health insurance plan, or any valuable consideration or inducement, that
is not specified in the health insurance plan.
(d) Nothing in this section shall be construed as prohibiting:
(1) the payment of commission or other compensation to any duly licensed agent or broker;
(2) any health insurer from allowing or returning to its participating policyholders dividends,
savings, or unused premium deposits;
(3) any health insurer from returning or otherwise abating, in full or in part, the premiums
of its policyholders out of surplus accumulated from nonparticipating insurance; or
(4) the health insurer from taking a bona fide obligation, with interest not exceeding
six percent per annum, in payment of any premium.
(e) A health insurer that pays a commission, fee, or other compensation, directly or indirectly,
to a licensed or unlicensed agent, broker, or other individual other than a bona fide
employee of the health insurer in connection with the sale of a group insurance policy
shall clearly disclose to the purchaser of the policy the amount of any such commission,
fee, or compensation paid or to be paid. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)