Repeals GS 58-63-16 (listing permitted trade practices under the unfair trade practices act pertaining to the business of insurance) and makes conforming change by repealing GS 58-63-15(8)b.4.

Increases the exemptions from GS 58-63-15(7) (unfair discrimination in the business of insurance) and GS 58-63-15(8) (certain rebates that constitute unfair trade practices in the business of insurance) to include:

1. Engaging in an arrangement that would violate section 106 of the federal Bank Holding Company as interpreted by the board of the Federal Reserve or Section 5(g) of the federal Home Owners’ Loan Act;
2. The offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance if all of the four described conditions are met, including that the product relates to insurance coverage and is primarily designed to satisfy one of nine listed needs (hereinafter, the insurance coverage product), that the insurance coverage product is offered at a reasonable cost in comparison to the customer’s premiums or insurance coverage for the policy class and that the insurance coverage product is not offered in a manner that is unfairly discriminatory.
3. The offer or provision of the insurance coverage products where the insurer or producer does not have sufficient evidence to demonstrate but has a good-faith belief that the products or service satisfies one or more of the nine listed needs referenced above, will be offered or provided in a manner that is not unfairly discriminatory as part of a pilot or testing program for no more than one year. Requires the insurance provider to notify the Department of Insurance (DOI) of such testing programs and may proceed unless DOI objects within 21days of such notice.
4. The offer or giving by an insurer or producer of noncash gifts, items, or services, including meals to or charitable donations on behalf of a customer, if all of the four described criteria are met.
5. The conducting of drawings or raffles by an insurer or producer to the extent permitted by law so long as the five listed criteria are met.

Prevents an insurer, producer, or representative of either from offering or providing insurance as an inducement to the purchase of another policy or otherwise use the words "free," "no cost," or words of similar import, in an advertisement making it an unfair method of competition and unfair and deceptive act or practice in the business of insurance. Clarifies that GS 58-63-15 does not preclude the trade practices allowed under the section. Makes conforming changes to GS 58-33-85 (rebates and charges in excess of premium prohibited and exceptions).  Applies to trade practices related to insurance contracts issued, renewed, or amended on or after the act becomes law.