Alabama § 27-40-16 - Payment of Rebates or Inducements Prohibited; Purchase of Premium Finance Agreement.
Full text of Alabama Code of Alabama § 27-40-16 — Payment of Rebates or Inducements Prohibited; Purchase of Premium Finance Agreement., with citation guidance and answers to common questions.
§ 27-40-16. Payment of Rebates or Inducements Prohibited; Purchase of Premium Finance Agreement.
No premium finance company and no employee of such a company shall pay, allow, or offer to pay or allow in any manner whatsoever to the insurance agent, insurance broker, or managing general agent, or any employee of any of the aforesaid, or to any other person, either as an inducement to the financing of any insurance contract with the premium finance company, or, after any such contract has been financed, any rebate whatsoever, either from the service charge for financing specified in the premium finance agreement or otherwise, or shall give or offer to give any valuable consideration or inducement of any kind directly, but a premium finance company may purchase or otherwise acquire a premium finance agreement, provided that it conforms to the provisions of this chapter, in all respects, from another premium finance company on such terms and conditions as may be mutually agreed upon.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-40-16
What does Code of Alabama § 27-40-16 cover?
Section 27-40-16 ("Payment of Rebates or Inducements Prohibited; Purchase of Premium Finance Agreement.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-40-16?
A common citation format is "Code of Alabama § 27-40-16" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-40-16 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.