Reminder: Don't Accept Gifts from Glass Repair Shop
May 24, 2006) — IIABNY recently received several inquiries from members about what they can and cannot accept from automobile glass repair shops. It has been the practice of some glass repair shops to offer gifts to employees of agencies and brokerages as a way of thanking those employees for referring customers to them.
New York Insurance Law Sect. 322 makes it unlawful for licensed insurance agents and brokers to directly or indirectly accept “any payment from a motor vehicle repairer for referring any motor vehicle repair business” to the repairer. The New York Insurance Department published an opinion on Sept. 11, 1998 that an agent would violate the Insurance Law by accepting a gift from a glass shop. Therefore, IIABNY members should not accept gifts, however small, from glass repair shops and should make their employees aware of this prohibition.
IIABNY members can download a copy of Section 322 from the Research section of the IIABNY Web site. A member login is required to access this section.
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