§ 58-33-90. Rebate of premiums on credit life and credit accident and health insurance; retention of funds by agent. - North Carolina Statutes

§58‑33‑90.  Rebate of premiums on credit life and credit accidentand health insurance; retention of funds by agent.

It shall be unlawful for anyinsurance carrier, or officer, agent or representative of an insurance companywriting credit life and credit accident and health insurance, as defined inG.S. 58‑58‑10 and G.S. 58‑51‑100, or combination creditlife, accident and health, hospitalization and disability insurance inconnection with loans, to permit any agent or representative of such company toretain any portion of funds received for the payment of losses incurred, or tobe incurred, under such policies of insurance issued by such company, or topay, allow, permit, give or offer to pay, allow, permit or give, directly, orindirectly, as an inducement to insurance, or after insurance has beeneffected, any rebate, discount, abatement, credit or reduction of the premium,to any loan agency, insurance agency or broker, or to any creditor of thedebtor on whose account the insurance was issued, or to any person, firm orcorporation which received a commission or fee in connection with the issuanceof such insurance:  Provided, that this section shall not prohibit the paymentof commissions to a licensed insurance agent or agency or limited representativeon the sale of a policy of credit life and credit accident and healthinsurance, or combination credit life, accident and health, hospitalization anddisability insurance in connection with loans.

It shall be unlawful for anyagent, agency, broker, limited representative, or insured named in any suchpolicy, or for any loan agency or broker, or any agent, officer or employee ofany loan agency or broker to receive or accept, directly or indirectly, anysuch rebate, discount, abatement, credit or reduction of the premium as set outin this section. (1987, c. 629, s. 1.)