b'INSURANCE REGULATORY|US/NAICStates Are Slow to Enact Amendments to Anti-Rebate Provisions of NAIC Model LawIn 2021, we saw very limited progress in the1.Does the value-added product or service, taken relaxation of anti-rebating prohibitions. As you mayas a whole, foster the solvency of the applicable recall, in December 2020, the NAIC Executiveinsurer and protect consumers?Committee/Plenary adopted amendments to the2.Is the value-added product or service, taken as anti-rebating provisions of the NAIC Unfair Tradea whole, offered in a manner that is not unfairly Practices Model Act (UTPA) that permit insurersdiscriminatory to consumers?and insurance producers, among other things, to provide, without charge or at a reduced cost, on a3.Does the value-added product or service non-discriminatory basis, certain value-addedmitigate loss or provide loss control that aligns products or services as well as non-cash gifts, items,with the risks of the policy, or educate about, or services, including meals to or charitableassess risk, monitor risk, identify sources of risk, donations on behalf of a customer, up to aor develop strategies for eliminating or stipulated cash value (for personal lines) or up to anreducing risks in alignment with the policy?amount that is reasonable in relation to the policyInterestingly, North Dakotas exemption for value-premium (for commercial lines). The only states thatadded products or services provides the have thus far adopted versions of thoseopportunity for an insurer or producer to offer the amendments are North Dakota and New Mexico.products or services in a manner that is not unfairly In March 2021, North Dakota passed Senate Billdiscriminatory as part of a pilot or testing program, 2072, which created exemptions to Northlasting no longer than one year, to collect sufficient Dakotas anti-rebating prohibitions, providedevidence that the value-added products or certain conditions are met, for: (1) raffles orservices meet the requirements of the exemption. drawings conducted by an insurance producerSuch a mechanism does not exist under the UTPA and (2) value-added products or services at no orand it will be interesting to see if other states will reduced cost. To supplement those statutoryadopt similar changes.changes, the North Dakota InsuranceAlso in March 2021, New Mexico passed House Department (NDID) issued Bulletin 2021-3, toBill 235, which created an exemption from New provide further guidance regarding the NDIDsMexicos anti-rebating prohibitions for value-expectations with regard to value-addedadded products or services at no or reduced cost, products or services, which must satisfy theon a non-discriminatory basis, provided certain following additional or complementary criteria: conditions are met.90|Global Insurance Industry Year in Review 2021'