§ 58-33-85. Rebates and charges in excess of premium prohibited; exceptions. - North Carolina Statutes

§ 58‑33‑85. Rebates and charges in excess of premium prohibited; exceptions.

(a)        No insurer, agent,broker or limited representative shall knowingly charge, demand or receive apremium for any policy of insurance except in accordance with the applicable filingapproved by the Commissioner. No insurer, agent, broker or limitedrepresentative shall pay, allow, or give, or offer to pay, allow, or give,directly or indirectly, as an inducement to insurance, or after insurance hasbeen effected, any rebate, discount, abatement, credit, or reduction of thepremium named in a policy of insurance, or any special favor or advantage inthe dividends or other benefits to accrue thereon, or any valuableconsideration or inducement whatever, not specified in the policy of insurance.No insured named in a policy of insurance, nor any employee of such insured,shall knowingly receive or accept, directly or indirectly, any such rebate,discount, abatement or reduction of premium, or any special favor or advantageor valuable consideration or inducement. Nothing herein contained shall beconstrued as prohibiting the payment of commissions or other compensation toduly licensed agents, brokers and limited representatives, nor as prohibitingany participating insurer from distributing to its policyholders dividends,savings or the unused or unabsorbed portion of premiums and premium deposits.As used in this section the word "insurance" includes suretyship andthe word "policy" includes bond.

(b)        No insurer, agent,broker, or limited representative shall knowingly charge to or demand orreceive from an applicant for insurance any money or other consideration inreturn for the processing of applications or other forms or for the renderingof services associated with a contract of insurance, which money or otherconsideration is in addition to the premium for such contract, unless theapplicant consents in writing before any services are rendered. This subsectiondoes not apply to the charging or collection of any fees otherwise provided forby law. (1987,c. 629, s. 1; c. 864, ss. 49, 89; 1989, c. 485, s. 52; 1991, c. 720, s. 4; 2001‑203,s. 25.)