Texas § IN.1702.102 - PROHIBITED REBATES AND INDUCEMENTS

§ IN.1702.102. PROHIBITED REBATES AND INDUCEMENTS

PROHIBITED REBATES AND INDUCEMENTS. (a) Except as provided by this subchapter, an insurer or agent may not, with respect to business written in this state: (1) knowingly permit the making of, offer to make, or make a life insurance policy or annuity contract or an agreement regarding the policy or contract, other than as plainly expressed in the issued policy or contract; (2) directly or indirectly pay, give, or allow or offer to pay, give, or allow as inducement to enter into a life insurance policy or annuity contract either: (A) a rebate of premiums payable on the policy or contract; or (B) a special favor or advantage in the dividends or other benefits of the policy or contract or a valuable consideration or inducement not specified in the policy or contract; or (3) give, sell, or purchase or offer to give, sell, or purchase in connection with a life insurance policy or annuity contract or as inducement to enter into the policy or contract: (A) stocks, bonds, or other securities of an insurer or other corporation, association, or partnership; (B) dividends or profits accrued from the stocks, bonds, or securities; or (C) anything of value not specified in the contract. (b) An insurer may not permit an agent, officer, or employee to issue or deliver as an inducement to enter into a life insurance policy or annuity contract: (1) company stock or other capital stock; (2) a benefit certificate or share in a corporation; (3) a security; or (4) a special or advisory board contract or any other contract promising returns or profits. (c) This section does not prohibit issuing or delivering a participating insurance policy or annuity contract otherwise authorized by law. Added by Acts 2025, 89th Leg., R.S., Ch. 581 (H.B. 2221 ), Sec. 2, eff. September 1, 2025.