Vermont § 4022 - Rebates and commissions prohibited for nongroup and small group policies and plans offered through the Vermont Health Benefit Exchange

§ 4022. Rebates and commissions prohibited for nongroup and small group policies and plans offered through the Vermont Health Benefit Exchange

• (a) 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 health insurance plan issued pursuant
  to 33 V.S.A. § 1811 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. (b) No person insured under a health insurance plan issued pursuant to 33 V.S.A. § 1811 or party or applicant for such plan 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 any favor or advantage, or share in any benefit to accrue under any health insurance
  plan issued pursuant to 33 V.S.A. § 1811, or any valuable consideration or inducement, that is not specified in the health
  insurance plan. (c) Nothing in this section shall be construed as prohibiting any health insurer from: (1) allowing or returning to its participating policyholders dividends, savings, or unused
  premium deposits; (2) returning or otherwise abating, in full or in part, the premiums of its policyholders
  out of surplus accumulated from nonparticipating insurance; or (3) taking a bona fide obligation, with interest not exceeding six percent per annum,
  in payment of any premium. (d)(1) No insurer shall pay any commission, fee, or other compensation, directly or indirectly,
  to a licensed or unlicensed agent, broker, or other individual in connection with
  the sale of a health insurance plan issued pursuant to 33 V.S.A. § 1811, nor shall a health insurer include in an insurance rate for a health insurance plan
  issued pursuant to 33 V.S.A. § 1811 any sums related to services provided by an agent, broker, or other individual. A
  health insurer may provide to its employees wages, salary, and other employment-related
  compensation in connection with the sale of health insurance plans but shall not structure
  any such compensation in a manner that promotes the sale of particular health insurance
  plans over other plans offered by that insurer. (2) Nothing in this subsection shall be construed to prohibit the Vermont Health Benefit
  Exchange established in 33 V.S.A. chapter 18, subchapter 1 from structuring compensation for agents or brokers in the form of
  an additional commission, fee, or other compensation outside insurance rates or from
  compensating agents, brokers, or other individuals through the procedures and payment
  mechanisms established pursuant to 33 V.S.A. § 1805(17). (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)