Code of Alabama - Title 27: Insurance - Section 27-12-12 - Life, annuity, and disability insurance - Agreements not expressed in contract, rebates, and other inducements

Section 27-12-12 - Life, annuity, and disability insurance - Agreements not expressed in contract, rebates, and other inducements.

(a) No person shall knowingly permit or offer to make, or make, any contract of life insurance, annuity or disability insurance or agreement as to such contract other than as plainly expressed in the contract issued thereon, or pay or allow, or give or offer to pay, allow or give, directly or indirectly, as an inducement to such insurance or annuity any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any paid employment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the contract, or, directly or indirectly, give, or sell, or purchase, or offer, or agree to give, sell, purchase, or allow as inducement to such insurance or annuity or in connection therewith, and whether or not to be specified in the policy or contract, any agreement of any form or nature promising returns and profits, or any stocks, bonds, or other securities, or interest present or contingent therein of any insurance company or other corporation, association, or partnership or any dividends or profits accrued, or to accrue thereon, or offer, promise, or give anything of value whatsoever not specified in the contract.

(b) The commissioner may, after hearing, revoke the certificate of authority of any insurer and the licenses of any agent or other licensed representative that has willfully violated this section.

(Acts 1957, No. 608, p. 865, §4; Acts 1971, No. 407, p. 707, §238.)

Last modified: May 3, 2021