§ 26-13-110 — Rebates

(a) Except as otherwise provided by law, no person shall:
(i) Authorize, offer to make or make any contract of
insurance or agreement as to that contract other than as
expressed in the contract issued thereon;
(ii) Pay, allow or give or offer to pay, allow, give,
receive or accept in any manner as inducement to the purchase of
insurance or renewal of insurance:
(A) Any rebate, discount, credit or reduction of
premiums payable on the contract;
(B) Any special favor or advantage in the
dividends or other benefits thereon;
(C) Any paid employment or contract for services
of any kind; or
(D) Any valuable consideration or inducement not
specified in the contract.
(iii) In any manner give, sell or purchase or offer
or agree to give, sell, purchase or allow as inducement to the
insurance or in connection therewith, and whether or not to be
specified in the policy or contract, any agreement of any form
or nature promising:
(A) Returns and profits;
(B) Any stocks, bonds or other securities, or
interest present or contingent therein or as measured thereby,
of any insurer or other corporation, association or partnership;
or
(C) Any dividends or profits accrued or to
accrue thereon.
(iv) Offer or provide insurance as an inducement to
the purchase of another policy or use the words "free", "no
cost" or similar wording in an advertisement;
(v) Unfairly discriminate against a customer when
offering or declining to offer any of the items authorized by
subsection (c) of this section.
(b) Nothing in W.S. 26-13-109 or subsection (a) of this
section shall prohibit any of the following practices:
(i) Paying bonuses to customers or abating their
premiums in whole or in part out of surplus accumulated from
nonparticipating insurance, provided that any bonuses or
abatement of premiums are fair and equitable to customers and
are in the insurer and its customers' best interests;
(ii) Making allowances to customers who have
continuously made premium payments directly to the office of an
insurer in an amount which fairly represents the saving in
collection expense;
(iii) Readjustment of the premium rate for a group
insurance policy based on the loss or expense experienced by the
insurer, which may be made retroactive only for that policy
year;
(iv) Reduction of premium rates for policies of large
amount, but not exceeding savings in issuance and administration
expenses reasonably attributable to those policies as compared
with policies of a similar plan issued in smaller amounts;
(v) Reduction in premium rates for life or disability
insurance policies on annuity contracts on salary savings,
payroll deduction, preauthorized check, bank draft or similar
plans in amounts reasonably commensurate with the savings made
by the use of those plans;
(vi) Allowing or returning to an insurer's
participating customers, members or subscribers dividends,
savings or unabsorbed premium deposits;
(vii) The payment of commissions or other
compensation to licensed producers;
(viii) The selling or offering for sale,
contemporaneously with life insurance, of mutual fund shares or
face amount certificates of regulated investment companies under
offerings with the securities and exchange commission if the
shares or face amount certificates and the life insurance may be
purchased independently, at the same price as and upon the same
terms and conditions as if purchased contemporaneously;
(ix) The offer or provision by insurers, producers or
their affiliates of a product or service at no cost or a reduced
cost when the product or service is not specified in the policy
of insurance and the product or service:
(A) Relates to the insurance coverage;
(B) Is primarily designed to satisfy one (1) or
more of the following:
(I) Provide loss mitigation or loss
control;
(II) Reduce claim costs or claim settlement
costs;
(III) Provide education about liability
risks or risk of loss to persons or property;
(IV) Monitor or assess risk, identify
sources of risk or develop strategies for eliminating or
reducing risk;
(V) Enhance health;
(VI) Enhance financial wellness through
items such as education or financial planning services;
(VII) Provide post-loss services;
(VIII) Incentivize behavioral changes to
improve the health or reduce the risk of death or disability of
a customer; or
(IX) Assist in the administration of
retirement benefit insurance coverage.
(C) The cost to the insurer or producer offering
the product or service to any given customer is reasonable in
comparison to that customer's premiums or insurance coverage for
the policy class;
(D) The insurer or producer ensures that the
customer is provided with contact information to assist the
customer with questions regarding the product or service;
(E) The availability of offered products or
services shall be based on documented objective criteria, which
shall by maintained by the insurer or producer and produced upon
request by the department. If the insurer or producer does not
have sufficient evidence, but has a good-faith belief that the
offered products or services meet the criteria, the insurer or
producer may provide the products or services as part of a pilot
or testing program for no more than one (1) year. The department
shall be notified of any pilot or testing program prior to
launching. The program may proceed unless the department objects
within thirty (30) days of notice.
(c) Unless prohibited by paragraphs (a)(ii) and (iii) of
this section, an insurer or producer may:
(i) Offer or give non-cash gifts, items or services
to customers in connection with the marketing, sale, purchase or
retention of contracts of insurance, provided that the cost of
the gifts, items or services are not included in any amounts
charged to another person or entity. The customer shall not be
required to purchase, continue to purchase or renew a policy in
exchange for the gift, item or service. The total value of the
gift, item or service per customer per calendar year shall not
exceed:
(A) One hundred dollars ($100.00) or five
percent (5%), but not to exceed one thousand dollars
($1,000.00), of the written premium for current customers; or
(B) One hundred dollars ($100.00) or five
percent (5%), but not to exceed one thousand dollars
($1,000.00), of the quoted premium for prospective customers.
(ii) Conduct raffles or drawings for prizes to the
extent permitted by state law at no cost to entrants. The
drawing or raffle shall not obligate participants to purchase
insurance and shall be open to the public. The customer shall
not be required to purchase or renew a policy in exchange for
entrance into the raffle or drawing. The total value of each
raffle or drawing shall not exceed one hundred dollars
($100.00).
(d) Any person who provides any gift, item, service or
prize under subsection (c) of this section shall retain records
which shall be considered records of transactions under W.S. 26-
9-228 and which shall be provided for inspection upon request of
the commissioner. These records shall include but are not
limited to receipts of purchase, dates of transaction and names
of customers.
(e) The commissioner may adopt rules and regulations when
implementing the permitted practices set forth in this section
to ensure consumer protection.
(f) As used in this section:
(i) "Insurance" means as defined by W.S. 26-1-
102(a)(xv) and also includes suretyship;
(ii) "Policy" means as defined by W.S. 26-1-
102(a)(xxi) and also includes bond;
(iii) "Customer" means a policyholder, potential
policyholder, certificate holder, potential certificate holder,
insured, potential insured or applicant.