Modernizing Anti-Rebate Laws: Lessons Learned and Future Considerations

The evolution of anti-rebating laws in the insurance industry reflects efforts to maintain fairness, protect consumer interests, and ensure market stability. These laws, originating in the late 19th century, were designed to address practices that jeopardized insurer solvency and fostered unfair discrimination. Approximately 10 years ago, the rise of insurtech platforms and innovative insurance models exposed challenges in adapting these laws to contemporary needs. Since that time, considerable attention continued to be focused on anti-rebate laws, especially as insurers increased offerings of mitigation services and devices to consumers to reduce losses. The NAIC formed a task force to examine these concerns and developed a model law for states to consider. This article provides an updated examination of the evolution and key elements of the NAIC model law. The paper also includes an updated policy analysis and an evaluation of state-specific responses to the key features of the model law.