AR HB1640

Amends Arkansas Code § 23-66-206(9) to clarify the definition of "rebates" in insurance and establish exceptions to rebate prohibitions.

Permits insurers and producers to offer value-added products or services at no or reduced cost if they relate to policy coverage and meet specified criteria including loss mitigation, claim cost reduction, health enhancement, financial wellness education, risk assessment, or employee benefit administration.

Requires value-added product or service costs to be reasonable compared to customer premiums, be based on documented objective criteria, and not be unfairly discriminatory.

Allows insurers and producers to conduct pilot or testing programs for value-based products for up to one year with prior notice to the commissioner unless objected to within 21 days.

Permits token gifts of $100 or less in wholesale value used for advertising purposes (such as pens, calendars, and notebooks) and prohibits offering insurance coverage as inducement to purchase another policy.