Let the rebating begin – it was only a matter of time. What similar option does a non-bank owned agency have that wouldn’t taste, smell and in fact be called rebating?
Let the rebating begin. It was only a matter of time – What similar option does a non-bank owned agency have that would smell, taste and actually be called rebating?
I will give you a toaster and a round trip for 2 to anywhere in New Jersey if you will let me write your homeowners policy. Not good enough? How about a toaster, a microwave and a trip…. What “profession” is this??
It’s not rebating, it’s a creative marketing plan to make people feel good and expand their purchasing power so they can get the things they need. People are empowered, they are energized, and lives are changed for the better! A bank using this method is not enticing people to buy insurance from them, no they want their customers to have more options. And what is wrong with giving people choice?
And let’s not get bogged down by semantics over this rebating question. I agree, rebating is illegal, but in this day and age where industries are expanding their product lines and become more aware of consumer needs ideas like point giving should be embraced and not belittled with the rebating that really is illegal.
And we should celebrate the moral clarity and insight that the state government has in keeping the system fair and balanced. And let’s not forget that financial institutions have no competitive advantage over the independent insurance agency system. Especially in this day and age of Consumerism where insurance agents have been so far ahead of the curve that banks have a hard time to compete.
I think the consumer wins here. They get an insurance product they need and also the ability to buy their own toaster and other items they need which they couldn’t afford on their own. Isn’t that a win-win?
GUESS WHERE THOMAS H. WORKS…..??????
Rebating is still rebating. What makes it worse is the insurance agency can’t issue it’s own Visa cards for incentives.
30 years in the business and I was always under the impression the rebating was illegal. The NJDOBI just rewrote the rules.
Watch the political contribution fly.
We all need to know how much a “point” is worth. If it is worth more than $20.00, then rebating has been introduced in New Jersey. It figures that scummy Commerce Bank would start it. Let’s see… how many top executive at that bank have been indicted?
It’s great to make a comment here but it won’t do much good. I suggest that we write letters to the NJ DOI and state attorney general’s office to complain. No doubt about it, this is rebating which is illegal.
These offers may not automatically constitute “rebating” or an “inducement to purchase”, whatever they may look like on their face. I would guess that to get these “points”, they must be charged on the individual’s new credit card. Further, the individual must be “credit worthy” to obtain this credit card. Several years ago the department adopted regulations that allowed customers to pay insurance premiums by credit card. Many will remember that a credit card company offered a deal that allowed business owners to accumulate “points” on their corporate credit cards if they charged their group health insurance premiums to those cards. I complained to the Department at that time and was told that no line could be drawn to a broker or insurance carrier that was actually doing the rebating. New Jersey brokers were outraged because the offer was only made to employers that got rid of their brokers and went directly to the carrier for coverage. Ultimately, the program was discontinued because it was unsuccessful. I suspect that this program will have very limited success and disappear in a very short period of time.
In the mean time, make sure that you do your banking with companies that you feel compete fairly and voice your displeasure in Trenton. I will.
Good point! It appears that the difference is that there a line from the parent of the agency to the customer. The Insurance Department is diligent in attacking referral fees from the agency to the banker. It appears that they are overlooking the obvious rebate.
Rebates??
Let the rebating begin – it was only a matter of time. What similar option does a non-bank owned agency have that wouldn’t taste, smell and in fact be called rebating?
Let the rebating begin. It was only a matter of time – What similar option does a non-bank owned agency have that would smell, taste and actually be called rebating?
I will give you a toaster and a round trip for 2 to anywhere in New Jersey if you will let me write your homeowners policy. Not good enough? How about a toaster, a microwave and a trip…. What “profession” is this??
Not only are they rebating, but in typical bank fashion, maybe they are giving away the whole commission earned? What is a point worth?
It’s not rebating, it’s a creative marketing plan to make people feel good and expand their purchasing power so they can get the things they need. People are empowered, they are energized, and lives are changed for the better! A bank using this method is not enticing people to buy insurance from them, no they want their customers to have more options. And what is wrong with giving people choice?
And let’s not get bogged down by semantics over this rebating question. I agree, rebating is illegal, but in this day and age where industries are expanding their product lines and become more aware of consumer needs ideas like point giving should be embraced and not belittled with the rebating that really is illegal.
And we should celebrate the moral clarity and insight that the state government has in keeping the system fair and balanced. And let’s not forget that financial institutions have no competitive advantage over the independent insurance agency system. Especially in this day and age of Consumerism where insurance agents have been so far ahead of the curve that banks have a hard time to compete.
I think the consumer wins here. They get an insurance product they need and also the ability to buy their own toaster and other items they need which they couldn’t afford on their own. Isn’t that a win-win?
Spoken like a true Banker!
GUESS WHERE THOMAS H. WORKS…..??????
Rebating is still rebating. What makes it worse is the insurance agency can’t issue it’s own Visa cards for incentives.
Unfair competition.
I would still like to know how much in dollars a point is worth.
I was being sarcastic.
30 years in the business and I was always under the impression the rebating was illegal. The NJDOBI just rewrote the rules.
Watch the political contribution fly.
We all need to know how much a “point” is worth. If it is worth more than $20.00, then rebating has been introduced in New Jersey. It figures that scummy Commerce Bank would start it. Let’s see… how many top executive at that bank have been indicted?
It’s great to make a comment here but it won’t do much good. I suggest that we write letters to the NJ DOI and state attorney general’s office to complain. No doubt about it, this is rebating which is illegal.
Enjoy!!
These offers may not automatically constitute “rebating” or an “inducement to purchase”, whatever they may look like on their face. I would guess that to get these “points”, they must be charged on the individual’s new credit card. Further, the individual must be “credit worthy” to obtain this credit card. Several years ago the department adopted regulations that allowed customers to pay insurance premiums by credit card. Many will remember that a credit card company offered a deal that allowed business owners to accumulate “points” on their corporate credit cards if they charged their group health insurance premiums to those cards. I complained to the Department at that time and was told that no line could be drawn to a broker or insurance carrier that was actually doing the rebating. New Jersey brokers were outraged because the offer was only made to employers that got rid of their brokers and went directly to the carrier for coverage. Ultimately, the program was discontinued because it was unsuccessful. I suspect that this program will have very limited success and disappear in a very short period of time.
In the mean time, make sure that you do your banking with companies that you feel compete fairly and voice your displeasure in Trenton. I will.
Good point! It appears that the difference is that there a line from the parent of the agency to the customer. The Insurance Department is diligent in attacking referral fees from the agency to the banker. It appears that they are overlooking the obvious rebate.