California · Penal Code
PEN §551: (a) It is unlawful for any automotive repair dealer, contractor, or employees or agents thereof to offer to any insurance agent, broker, or adjuster any fee, commission, profit sharing, or other form
What this law says, in plain English
It is unlawful for automotive repair dealers or contractors to offer payments to insurance agents for referrals, or to offer discounts to offset insurance deductibles without insurer approval. Violations are punishable by imprisonment and/or fines, with harsher penalties when the claim amount exceeds $950.
Read the full statutory text
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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.