(1) No person may make, issue, circulate, or cause to be made, issued, or circulated any estimate, illustration, circular statement misrepresenting the terms of any policy issued or to be issued, the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon.
(2) No person may make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies.
(3) No person may pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the purchase or the renewal of an insurance contract, any rebate of premiums payable on the contract, any special favor or advantage in any benefits payable thereon, or any valuable consideration or inducement that is not specified in the contract.
(4) Nothing in this section may be construed to:
(a) permit an unfair method of competition or an unfair or deceptive act or practice; or
(b) prohibit an insurer from offering or giving an insured, for free or at a discounted price, services or other offerings that directly and reasonably relate to the loss control of the risks covered under the policy.
HISTORY: Former 1976 Code Section 38-57-130 [1947 (45) 322; 1952 Code Section 37-1161; 1962 Code Section 37-1161; 1978 Act No. 585 Section 13] recodified as Section 38-7-80 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-55-130 [1947 (45) 322; 1952 Code Section 37-1202; 1962 Code Section 37-1213; 1964 (53) 2293] recodified as Section 38-57-130 by 1987 Act No. 155, Section 1; 2019 Act No. 6 (S.360), Section 8.A, eff July 1, 2019.
Effect of Amendment
2019 Act No. 6, Section 8.A, added (4), clarifying that certain practices are prohibited.