§ 27-9-44 - Terms to be stated in policy – Rebates prohibited.
SECTION 27-9-44
§ 27-9-44 Terms to be stated in policy– Rebates prohibited. – No insurer, or any officer, insurance producer, or their representative, shallmake any contract for insurance, on property or risks located within thisstate, or against any liability, casualty, accident, or hazard that may ariseor occur in this state, or any agreements as to any contract, other than asplainly expressed in the policy issued or to be issued on the agreement orcontract; nor shall any insurer, or officer, insurance producer, or theirrepresentative, directly or indirectly, in any manner, pay or allow or offer topay or allow to the insured named in the policy or to any employee of theinsured as an inducement to the insurance, or after the insurance shall havebeen effected, any rebate from the premium which is specified in the policy orany special favor or advantage in the dividends or other benefit to accrue onthe policy, or any valuable consideration or inducement, not specified in thepolicy or contract of insurance, or give, sell, or purchase, as an inducementto the insurance, or in connection with the insurance, any stock, bonds, orother securities of any insurance or other corporation or association, or anydividends or profits accrued on the stock, bonds, or securities, or anything ofvalue, not specified in the policy, nor shall any insurance producer orrepresentative, or any other person, directly or indirectly, either by sharingcommissions or in any manner, pay or allow or offer to pay or allow to theinsured named in the policy, or to any employee of the insured, as aninducement to the insurance, or after the insurance shall have been effected,any rebate from the premium which is specified in the policy, nor shall anyinsured, or party, or applicant for insurance, his, her or its employee, agent,or representative, knowingly receive or accept, or agree to accept, or agree toreceive or accept, directly or indirectly, any rebate of a premium or any partof the premium or all or any part of any commission on the premium, or anyfavor or advantage, or share in any benefit to accrue under any contract ofinsurance, or any valuable consideration or inducement, other than what isspecified in the policy; provided, that nothing in this section shall preventany insurer from the distribution of surplus, dividends, savings, or the unusedor unabsorbed portion of premiums and premium deposits to participatingpolicyholders, nor shall this section prevent any insurer, or its agent, frompaying commissions to a licensed insurance producer who shall have negotiatedfor the insurance, nor shall it prevent any licensed insurance producer fromsharing or dividing a commission earned or received by the insurance producerwith any other licensed insurance producer who shall have aided the insuranceproducer in respect to the insurance for the negotiation of which thecommission shall have been earned or paid; but no insurer, or insuranceproducer shall pay or allow commissions or brokerage to any person acting as aninsurance producer in this state who is required by law to be licensed but isnot licensed. As used in this section, the word "insurance" includes suretyshipand the word "policy" includes bond. Sections 27-8-7 – 27-8-10 shall notapply to the kinds of insurance subject to the provisions of this chapter.