Insurance law

Is cash back on insurance legal?

Short version: no, not in the way it is usually advertised. Paying a consumer anything of value for buying or renewing a policy is rebating, and the anti-rebating statute in the state insurance code prohibits it almost everywhere. Below is the reasoning, the two exceptions, and the specific structure regulators have already shut down.

Statutes reviewed October 30, 2026 · 49 jurisdictions prohibit it outright; 2 permit it for a licensed producer only

The short answer

A comparison site cannot pay you for buying insurance.

Every state except California and Florida prohibits rebating by statute, and most reach payments made "directly or indirectly" as an inducement.
California and Florida permit it, but the permission attaches to a licensed agent or broker acting as agent of record, subject to filing and uniformity conditions.
Routing the payment through a non-insurance affiliate does not work. Massachusetts Division of Insurance Bulletin 2024-06 prohibits exactly that.

What rebating actually means

Rebating is giving a buyer anything of value that is not written into the policy, as an inducement to buy or renew it. The classic form is handing back part of the commission. The definition is deliberately wide, because its purpose is to stop insurers and producers from competing on side payments instead of on filed rates.

That purpose explains why the prohibition is not limited to cash, or to the producer, or to the moment of sale.

It reaches non-cash value

Gift cards, merchandise, fee waivers, a paid inspection, covering a deductible — all are "valuable consideration". Florida caps unrelated promotional gifts at $100 per person per year precisely because the line otherwise disappears.

It reaches indirect payment

The statutes prohibit paying, allowing or giving, "directly or indirectly", any rebate or inducement. A payment made by a marketing partner out of its own commission is an indirect inducement.

It reaches after the sale

North Carolina's statute expressly covers consideration given "as an inducement to insurance, or after insurance has been effected". A payout thirty days after binding is still inside the prohibition.

It binds the buyer too

Several statutes, North Carolina's among them, make it a violation for the insured to knowingly receive the rebate. That is why "everyone does it" is not a defence.

The two exceptions, and what they actually permit

California and Florida both allow commission rebating. Neither allows a website to do it, because the permission is written for a licensed producer on the risk.

CA California: permitted for agents and brokers

Section 750 of the Insurance Code makes it a crime for "any person" to offer or accept consideration for the referral or procurement of insurance clients, but subdivision (d) states that nothing in the section applies to the rebating of commissions by insurance agents or brokers as authorised by Proposition 103. The carve-out is for the licensed producer. A publisher that is not the agent of record is outside it.

Cal. Ins. Code § 750(d); Proposition 103

FL Florida: permitted, subject to six conditions

Florida does not prohibit rebating by an "insurance agency agent", but the rebate must satisfy every one of these conditions at once.

The rebate is available to all insureds in the same actuarial class.
It follows a rebating schedule filed with the insurer that issues the policy.
It is applied uniformly — every insured buying the same policy for the same amount gets the same percentage.
It is not paid on a policy from a carrier that prohibits its agents from rebating.
The schedule is posted in public view at the agent's place of business and available on request at no charge.
Age, sex, residence, race, nationality, ethnicity, marital status, occupation and location of the risk play no part in setting the percentage.

Fla. Stat. § 626.572; § 626.593

The structure that does not work: pay through a marketing affiliate

The obvious workaround is to have the payment made by a separate marketing company rather than by the producer. Massachusetts closed that in 2024, and the reasoning generalises.

An insurer or producer may not allow an affiliated non-insurance entity to offer payments, reductions or discounts contingent upon the purchase of insurance or intended to induce the purchase of insurance. The prohibition applies to any program, scheme or method that provides anything of value not specified in the insurance contract.

The bulletin's own worked example is an airline awarding loyalty points to customers who buy travel insurance at checkout. A comparison site paying cash back from affiliate commission is the same transaction with a different logo. Expect other states to follow the same reasoning, because the underlying statutes already say "directly or indirectly".

M.G.L. c. 176D, § 3(8); Massachusetts Division of Insurance Bulletin 2024-06

What happens if you do it anyway

The exposure is not theoretical, and it is asymmetric: the carrier and the producer carry the regulatory risk, which is why they terminate affiliate relationships rather than defend them.

California

Insurance Code § 750(b): a first conviction carries up to one year in county jail, or imprisonment under Penal Code § 1170(h), or a fine of up to $50,000, or both. A second conviction carries imprisonment and a $50,000 fine.

Elsewhere

Cease-and-desist orders and fines under the state unfair trade practice act; licence suspension or revocation for any producer involved; market-conduct examinations at the carrier; and termination of the affiliate account with clawback of commissions already paid. Separately, the FTC treats a promised reward that is not paid as a deceptive practice under § 5 of the FTC Act, with civil penalties assessed per violation.

State-by-state table

Filter by state name or code. A check mark means the citation was read directly from the statute or a departmental bulletin; entries without one state the general rule and should be confirmed with the state department of insurance before you rely on them.

State	Rule	Authority
Alabama AL	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Alaska AK	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Arizona AZ	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Arkansas AR	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
California CA	Licensed producer only ✓	Cal. Ins. Code § 750(d); Proposition 103 (1988) What it says § 750 makes it a crime for "any person" to pay or accept consideration for the referral or procurement of insurance clients, but § 750(d) carves out "the rebating of commissions by insurance agents or brokers, as authorized by Proposition 103". The carve-out runs to the licensed agent or broker on the risk. A publisher that is not the agent of record is not inside it.
Colorado CO	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Connecticut CT	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Delaware DE	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
District of Columbia DC	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Florida FL	Licensed producer only ✓	Fla. Stat. § 626.572; § 626.593 What it says Permitted for an "insurance agency agent", but only if all six conditions in § 626.572(1) are met: the rebate is available to every insured in the same actuarial class, follows a rebating schedule filed with the insurer, is applied uniformly, is not paid on a policy from a carrier that forbids agent rebating, is posted publicly in the agent's place of business, and ignores age/sex/race/residence/occupation. § 626.593 additionally requires rebating the full commission within 30 days where a separate fee was charged.
Georgia GA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Hawaii HI	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Idaho ID	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Illinois IL	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Indiana IN	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Iowa IA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Kansas KS	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Kentucky KY	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Louisiana LA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Maine ME	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Maryland MD	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Massachusetts MA	Prohibited ✓	M.G.L. c. 176D, § 3(8); Division of Insurance Bulletin 2024-06 What it says Bulletin 2024-06 closes the exact loop an affiliate site would try to walk through: an insurer or producer may not let an "affiliated non-insurance entity" offer payments, reductions or discounts contingent on buying insurance. Its worked example is an airline awarding loyalty points for buying travel insurance at checkout. A cash-back offer funded by affiliate commission is the same structure.
Michigan MI	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Minnesota MN	Prohibited ✓	Minn. Stat. § 60K.48, subd. 1-3 What it says An insurer or producer may not pay "commission, service fee, brokerage, or other valuable consideration" to an unlicensed person for selling, soliciting or negotiating insurance, and the unlicensed person may not accept it. Subd. 3(b) permits paying entities that do not sell or solicit, but only "unless the payment would constitute an illegal rebate".
Mississippi MS	Prohibited ✓	Miss. Code § 83-54-23 What it says Prohibits rebates of premium and "other inducements", and separately bars paying a commission to "a person, including a creditor, who is not appropriately licensed as a producer in this state".
Missouri MO	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Montana MT	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Nebraska NE	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Nevada NV	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
New Hampshire NH	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
New Jersey NJ	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
New Mexico NM	Prohibited ✓	N.M. Stat. § 59A-16-16 What it says Lists the narrow practices that are not treated as rebates — policyholder dividends, payroll-deduction savings, large-amount rate reductions and similar. A commission share paid to a buyer is not on the list. The 2021 amendment added value-added products/services to the exception set, which is the one route worth exploring with counsel.
New York NY	Prohibited	N.Y. Ins. Law § 2324 What it says Bars any "rebate of premium payable on the contract" or "any special favor or advantage in the dividends or other benefits" and any valuable consideration not specified in the policy. Applies to insurers, agents and brokers; the standard reading also reaches anyone acting in concert with them.
North Carolina NC	Prohibited ✓	N.C. Gen. Stat. § 58-33-85 What it says Prohibits paying or giving, directly or indirectly, as an inducement to insurance or after insurance has been effected, "any rebate, discount, abatement, credit, or reduction of the premium", or any valuable consideration not specified in the policy. The insured who knowingly accepts is equally in violation.
North Dakota ND	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Ohio OH	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Oklahoma OK	Prohibited ✓	36 O.S. § 1204(8)(a); OID Bulletin 2025-01 (17 Jan 2025) What it says The bulletin was issued specifically because producers were negotiating the return of commissions to win accounts. It states that returning any portion of a commission to secure business, "regardless of how that returned commission is to be used", is rebating and violates the unfair trade practice laws.
Oregon OR	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Pennsylvania PA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Rhode Island RI	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
South Carolina SC	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
South Dakota SD	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Tennessee TN	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Texas TX	Prohibited	Tex. Ins. Code ch. 541 (unfair methods of competition); § 541.061 What it says Rebating is treated as an unfair method of competition and a misrepresentation of the policy. TDI enforcement is complaint-driven, which in practice means a single competitor tip starts the file.
Utah UT	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Vermont VT	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Virginia VA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Washington WA	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
West Virginia WV	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Wisconsin WI	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.
Wyoming WY	Prohibited	State anti-rebating statute (unfair trade practice / NAIC Model #880 lineage) What it says The state insurance code prohibits paying or offering, directly or indirectly, any rebate of premium or any valuable consideration not specified in the policy as an inducement to buy or renew. Confirm the current text with the state department of insurance before relying on this row.

This table is a screening tool, not legal advice. Statutes change, and enforcement priorities change faster than statutes.

What a site can lawfully offer

The four conditions below are the ones that keep a rewards programme on the right side of the line. Our own programme is built to satisfy all four.

Points must not be contingent on buying insurance — The moment a reward is conditioned on a policy being bound, it becomes an inducement and the anti-rebating analysis applies. Earn events must be things the member can complete without buying anything: submitting a premium observation, running a calculator, referring someone who registers. If a member could earn the same points without ever buying a policy, the offer is not an inducement.
Never promise a reward you will not pay — The FTC treats "falsely claiming that consumers who enroll will receive free offers, cash rewards, rebates, or other incentives" as a deceptive practice under § 5 of the FTC Act, with civil penalties that run per violation. A rewards page is a promise. Fund the liability before you publish it, and publish the payout terms (minimum, timing, expiry) in the same place the promise is made.
Affiliate programme terms override your own — Nearly every CPA network and carrier prohibits "incentivized traffic" — paying the user to convert. Points for using a calculator are fine. Points for clicking a partner link are not, and will get the account terminated and the commissions clawed back. Check each partner record's notes before you attach it to a reward.
Report the payouts — Rewards redeemed for cash or gift cards are generally taxable income to the recipient in the US. Track the value delivered per member per calendar year; issue Form 1099-NEC or 1099-MISC once the total crosses the reporting threshold, and collect a W-9 before the first cash-equivalent payout.

See the rewards programme →

Questions people actually ask

Can a website pay me cash back after I buy insurance through it?

Not if the payment is conditioned on buying the policy. That is rebating, and every state except California and Florida prohibits it outright. In California and Florida the permission belongs to a licensed agent or broker acting as agent of record, not to a comparison site or lead generator.

What if the money comes from the website and not from the insurer?

The source does not matter. The statutes reach anything paid "directly or indirectly" as an inducement. Massachusetts Division of Insurance Bulletin 2024-06 addresses this exact structure: an insurer or producer may not let an affiliated non-insurance business offer payments or discounts contingent on buying insurance, and its worked example is loyalty points awarded at checkout.

Is a gift card different from cash?

No. A gift card is "valuable consideration". Most states also cap promotional gifts that are not tied to a sale at a nominal amount — Florida, for instance, caps them at $100 per person per year under § 626.9541 — and a payment that only appears once a policy is bound is not a promotional gift.

What can a site lawfully give me?

Things that do not depend on buying a policy: free calculators, comparison data, guides, alerts, and rewards for contributing information or referring other readers. A programme that pays you for a premium observation you submit, whether or not you buy anything, is not an inducement because you can earn the same amount without ever buying.

What are the penalties?

They vary. California Insurance Code § 750 makes a violation a crime punishable by up to a year in county jail and a fine of up to $50,000, or both; a second conviction carries up to $50,000 and imprisonment. Elsewhere the usual outcome is a cease-and-desist order, fines under the unfair trade practice act, licence suspension or revocation for the producer, and market-conduct scrutiny for the carrier.