§ 471. Rebates and inducements prohibited; revocation of licenses; penalties
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: July 3, 2018
Effective: July 3, 2018
40 P.S. § 471
§ 471. Rebates and inducements prohibited; revocation of licenses; penalties
(a) Except as otherwise provided in this section, no insurance company, association, or exchange, by itself or by its officers or members, attorney-in-fact or by any other party, shall offer, promise, allow, give, set off, or pay, directly or indirectly, any rebate of, or part of, the premium payable on the policy, or on any policy or agent's commission thereon, or earnings, profit, dividends, or other benefit founded, arising, accruing, or to accrue thereon or therefrom, or any special advantage in date of policy or age of issue, or any paid employment or contract for services of any kind, or any other valuable consideration or inducement, to or for insurance on any risk in this Commonwealth, now or hereafter to be written, which is not specified in the policy contract of insurance; nor shall any such company, association, or exchange, personally or otherwise, offer, promise, give, option, sell, or purchase any stocks, bonds, securities, or property, or any dividends or profits accruing or to accrue thereon, or other thing of value whatsoever, as inducement to insurance or in connection therewith, which is not specified in the policy. Nothing in this section shall be construed to prevent the taking of a bona fide obligation, with legal interest, in payment of any premium.
(b) An insurance company, association or exchange, by itself, its officers, members or attorney-in-fact or any other party may offer or give to an insured or a prospective insured, on an annual aggregate basis, any favor, advantage, object, valuable consideration or anything other than money that has a cost or redeemable value of less than or equal to one hundred dollars ($100). The Insurance Commissioner may increase this amount upon publication of notice in the Pennsylvania Bulletin.
(1) preventing a company transacting industrial life insurance on a weekly payment plan from returning to policyholders, who have made a premium payment for a period of at least one year, the percentage of premium which the company would otherwise have paid for the weekly collection of such premium;
(2) permitting any unfair method of competition or an unfair or deceptive act or practice under the act of July 22, 1974 (P.L. 589, No. 205),1 known as the “Unfair Insurance Practices Act”; or
(3) prohibiting an insurance company, association or exchange, by itself or by its officers or members, attorney-in-fact or by any other party from offering or giving to an insured or a prospective insured, for free or at a discounted price, services or other offerings that relate to loss control of the risks covered under the policy.
Credits
1921, May 17, P.L. 682, art. III, § 346. Amended 2018, May 4, P.L. 116, No. 23, § 1, effective in 60 days [July 3, 2018].
Footnotes
40 P.S. § 1171.1 et seq.
40 P.S. § 471, PA ST 40 P.S. § 471
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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