40-966. Same; premiums; account charged in accordance with act; rebates and other inducements prohibited.
40-966
40-966. Same; premiums; account charged in accordance with act; rebatesand other inducements prohibited.No broker or agent shall knowingly charge, demand or receive apremium for any policy of insurance except in accordance with the provisions ofthis act. No insurer or employee thereof, and no broker or agent shall pay,allow, or give, or offer to pay, allow to give, directly or indirectly, as aninducement to insurance, or after insurance has been effected, anyrebate, discount, abatement, credit or reduction of the premium named in apolicy of insurance, or any special favor or advantage in the dividends orother benefits to accrue thereon, or any valuable consideration orinducement whatever, not specified in the policy of insurance, except to theextent provided for in an applicable filing. No insured named in a policy ofinsurance, or any employee of such insured shall knowingly receive or acceptdirectly or indirectly, any such rebate, discount, abatement, credit orreduction of premium, or any such special favor or valuable consideration orinducement. Nothing in this section shall be construed as prohibiting thepayment of commissions or other compensation to duly licensed agents andbrokers, nor as prohibiting any insurer from allowing or returning to itsparticipating policyholder, members or subscribers, dividends, savings orunabsorbed premiumdeposits. As used in this section the word "insurance" includes suretyship andthe word "policy" includes bond.
History: L. 1997, ch. 154, § 16; July 1.