§ 27-8-7. Terms to be stated in policy — Rebates prohibited.
No insurance corporation authorized to do any insurance business within this state,
or any officer, insurance producer, or their representative, shall make any contract
for insurance, on property or risks located within this state, or against any liability,
casualty, accident, or hazard that may arise or occur in this state, or any agreement
as to that contract, other than as plainly expressed in the policy issued or to be
issued; nor shall any corporation, or officer, insurance producer, or their representative,
directly or indirectly, in any manner, pay or allow or offer to pay or allow to the
insured named in the policy or to any employee of the insured as an inducement to
the insurance, or after the insurance has been effected, any rebate from the premium
that is specified in the policy or any special favor or advantage in the dividends
or other benefit to accrue on the policy; or any valuable consideration or inducement,
not specified in the policy or contract of insurance, or give, sell, or purchase,
as an inducement to the insurance, or in connection with it, any stock, bonds, or
other securities of any insurance or other corporation or association, or any dividends
or profits accrued on the stock, bonds, or securities, or anything of value, not specified
in the policy; nor shall any insurance producer or representative, or any other person,
directly or indirectly, either by sharing commissions or in any manner, pay or allow
or offer to pay or allow to the insured named in the policy, or to any employee of
the insured, as an inducement to the insurance, or after the insurance has been effected,
any rebate from the premium that is specified in the policy. Nothing in this chapter
shall prevent any corporation lawfully doing insurance business in this state from
the distribution of surplus and dividends to policyholders, nor shall this chapter
prevent any corporation, or its agent, from paying commissions to a licensed insurance
producer who has negotiated for the insurance, nor shall it prevent any licensed insurance
producer from sharing or dividing a commission earned or received by the insurance
producer with any other licensed insurance producer, who has aided the insurance producer
in respect to the insurance for the negotiation of which the commission has been earned
or paid.