§ 27-4-6 - Terms to be stated in policy – Rebates prohibited.
SECTION 27-4-6
§ 27-4-6 Terms to be stated in policy– Rebates prohibited. – (a) No life insurance corporation doing business in this state, nor anyinsurance producer of the corporation, shall permit, offer, or make anycontract of insurance or agreement as to any contract other than as plainlyexpressed in the policy issued on the contract or agreement; nor shall anycompany or any officer, insurance producer, or representative of the company orproducer pay, allow, or give, or offer to pay, allow, or give, directly orindirectly, as inducement to any person to insure, or give, sell, or purchase,or offer to give, sell, or purchase as an inducement or in connection with anyinsurance, any stocks, bonds, or other securities of any insurance company orother corporation, association, or partnership, or any dividends or profitsaccruing on the securities, or any valuable consideration or inducement of anykind not specified in the policy, nor shall any person knowingly receive as aninducement any rebate of premium, or any special favor or advantage in thedividends or other benefits, or any paid employment or contract for services ofany kind, or any valuable consideration or inducement of any kind, notspecified in the policy.
(b) Nothing in this section shall be construed to forbid acompany transacting industrial insurance on a weekly payment plan fromreturning to policyholders who have made premium payments for a period of atleast one year, directly to the company at its home or district offices, apercentage of the premium which the company would have paid for the weeklycollection of the premiums.