In Law360 Article, Shawn Hanson and Nicholas Gregory Examine Latest Twist in Anti-Rebate Framework for Insurers

Law360 has published the article “Washington's Definition Of Improper Rebates May Shift,” written by Shawn Hanson and Nicholas Gregory, partner and counsel, respectively, in the litigation practice at Akin Gump. The article examines an ongoing feud between the insurance commission in Washington state and the California-based insurance broker Zenefits.

Last month, the authors write, an administrative law judge in Washington ruled that Zenefits was not in violation of state law with its provision of free software to the general public for human resources functions. The company, however, “was still in violation of Washington’s anti-rebate statute because it offered its clients ‘full HR integration.’”

Hanson and Gregory detail the events leading up to the court order. They then address what it means for insurance brokers, noting that it allows for “greater certainty that when a broker provides a gift of software to the general public — and does not condition that gift on the purchase of insurance — that broker is complying with anti-rebate laws.”

For a more thorough analysis of the judge’s order, the complete article can be read by clicking here.