§ 27-8-7 - Terms to be stated in policy – Rebates prohibited. - Rhode Island Statutes

SECTION 27-8-7

   § 27-8-7  Terms to be stated in policy– Rebates prohibited. – No insurance corporation authorized to do any insurance business within thisstate, or any officer, insurance producer, or their representative, shall makeany contract for insurance, on property or risks located within this state, oragainst any liability, casualty, accident, or hazard that may arise or occur inthis state, or any agreement as to that contract, other than as plainlyexpressed in the policy issued or to be issued; nor shall any corporation, orofficer, insurance producer, or their representative, directly or indirectly,in any manner, pay or allow or offer to pay or allow to the insured named inthe 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 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 the insurance, or in connection with it,any stock, bonds, or other securities of any insurance or other corporation orassociation, or any dividends or profits accrued on the stock, bonds, orsecurities, or anything of value, not specified in the policy; nor shall anyinsurance producer or representative, or any other person, directly orindirectly, 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 the insurance, or after the insurance has beeneffected, any rebate from the premium which is specified in the policy. Nothingin this chapter shall prevent any corporation lawfully doing insurance businessin this state from the distribution of surplus and dividends to policyholders,nor shall this chapter prevent any corporation, or its agent, from payingcommissions to a licensed insurance producer who has negotiated for theinsurance, nor shall it prevent any licensed insurance producer from sharing ordividing a commission earned or received by the insurance producer with anyother licensed insurance producer, who has aided the insurance producer inrespect to the insurance for the negotiation of which the commission has beenearned or paid.