Skip to main content
Find a Lawyer

Texas Insurance Code - INS § 1702.102. Prohibited Rebates and Inducements

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Texas Insurance Code - INS § 1702.102. Prohibited Rebates and Inducements - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-1702-102/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard