Insurers, insurance producers, and other persons generally may not use employment, stock, special-profit contracts, or items over $100 as inducements for insurance, but certain ancillary loss-prevention products and services are allowed.
20-452 - Prohibited inducements 20-452 . Prohibited inducements A. Except as allowed in subsection B of this section and sections 20-453 and 20-454, any insurer, insurance producer or other person, as an inducement to insurance or in connection with any insurance transaction, shall not provide in any policy for or offer, sell, buy or offer or promise to buy, sell, give, promise or allow to the insured or prospective insured or to any other person on behalf of the insured or prospective insured in any manner: 1. Any employment. 2. Any shares of stock or other securities issued or at any time to be issued or any interest therein or rights thereto. 3. Any advisory board contract, or any similar contract, agreement or understanding, offering, providing for or promising any special profits. 4. Any prizes, goods, wares, merchandise or tangible property of an aggregate value of more than $100. This paragraph does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed $200. An insurer may not offer, reference or promote an incentive or feedback effort under this paragraph in connection with an application for or renewal of insurance coverage. For the purposes of this paragraph, "feedback effort" means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services, including in-person, telephonic or online surveys, polls, focus groups, interviews, questionnaires and other recognized opinion-gathering mechanisms. B. An insurer, insurance producer or other person may offer or provide products or services that are ancillary or related to any insurance coverage and that are intended to minimize or prevent claims-related losses or expenses or harm to the public, including fire or smoke detectors, risk audits or assessments and products or services to deter injury, death or property theft or damage. The products and services that may be offered or provided in this subsection are exempt from the prohibitions set forth in subsection A of this section.