(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 inducem
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(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.)