§ 27-6-46 - Terms to be stated in policy – Rebates prohibited. - Rhode Island Statutes

SECTION 27-6-46

   § 27-6-46  Terms to be stated in policy– Rebates prohibited. – No insurer, or any officer, insurance producer, or representative of aninsurer, shall make any contract for insurance, on property on risks locatedwithin this state, or against any liability, casualty, accident, or hazard thatmay arise or occur in this state, or any agreement as to that contract, otherthan as plainly expressed in the policy issued or to be issued on the agreementor contract; or shall any insurer, or officer, insurance producer, orrepresentative of an insurer, directly or indirectly, in any manner, pay orallow or offer to pay or allow to the insured named in the policy or to anyemployee of the insured as an inducement to that insurance, or after theinsurance shall have been effected, any rebate from the premium which isspecified in the policy or any special favor or advantage in the dividends orother benefit to accrue on the policy; or any valuable consideration orinducement not specified in the policy or contract of insurance, or give, sell,or purchase, as an inducement to that insurance, or in connection with thatinsurance, any stock, bonds, or other securities of any insurance or othercorporation or association, or any dividends or profits accrued on thesecurities, or anything of value not specified in the policy, or shall anyinsurance producer or his or her representatives, or any other person, directlyor indirectly, either by sharing commissions or in any manner pay or allow oroffer to pay or allow to the insured named in the policy, or to any employee ofthe insured, as an inducement to that insurance, or after the insurance shallhave been effected, any rebate from the premium which is specified in thepolicy, or shall any insured, or party, or applicant for insurance, his or heror its employee, agent, or representative knowingly receive or accept, or agreeto accept, or agree to receive or accept, directly or indirectly, any rebate ofpremium or any part of the premium or all or any part of any commission on thepremium, or any favor or advantage, or share in any benefit to accrue under anycontract of insurance, or any valuable consideration or inducement, other thanwhat is specified in the policy; provided, that nothing in this section shallprevent any insurer from the distribution of surplus, dividends, savings, orthe unused or unabsorbed portion of premiums and premium deposits toparticipating policyholders, or shall this section prevent any insurer, or itsinsurance producer, from paying commissions to a licensed insurance producerwho shall have negotiated for the insurance, or shall it prevent any licensedinsurance producer from sharing or dividing a commission earned or received bythe insurance producer with any other licensed insurance producers who shallhave aided the insurance producer in respect to the insurance for thenegotiation of which that commission shall have been earned or paid; but noinsurer or agent, or broker shall pay or allow commissions or brokerage to anyperson acting as an insurance producer in this state who is required by law tobe licensed but is not licensed. Sections 27-8-7 – 27-8-10 shall not applyto the kinds of insurance subject to the provisions of this chapter.