Insurance agents selling flood-insurance policies will no longer be allowed to cede a portion of their commissions to property owners to induce them to purchase insurance—a practice known as insurance rebating.
The Federal Emergency Management Agency (FEMA) announced in an April 4 bulletin that the new policy will be effective Oct. 1. The bulletin says the Federal Insurance and Mitigation Administration (FIMA) had received inquiries from interested parties regarding the practice.
According to a notice provided to National Association of Professional Insurance Agents members, FEMA acted at the request of the association and individual agents.
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