2005 Idaho Code - 41-1314 — REBATES -- ILLEGAL INDUCEMENTS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 13
                          TRADE PRACTICES AND FRAUDS
    41-1314.  REBATES -- ILLEGAL INDUCEMENTS. (1) Except as otherwise
expressly provided by law, no person shall knowingly make, permit to be made,
or offer to make any contract of insurance, or of annuity, or agreement as to
such contract, other than as plainly expressed in the contract issued thereon,
or pay or allow, or give or offer to pay, allow, or give, directly or
indirectly, as inducement to such insurance or annuity or in connection
therewith, any rebate of premiums payable on the contract, or of any agent's,
solicitor's, or broker's commission related thereto, or any special favor or
advantage in the dividends or other benefits thereon, or any paid employment
or contract for services of any kind, or any valuable consideration or
inducement whatever not specified in the contract; or directly or indirectly
give, or sell, or purchase or offer or agree to give, sell, purchase, or allow
as inducement to such insurance or annuity or in connection therewith, and
whether or not specified or to be specified in the policy or contract, any
agreement of any form or nature promising returns and profits, or any stocks,
bonds, or other securities, or interest present or contingent therein or as
measured thereby, of any insurer or other person, or any dividends or profits
accrued or to accrue thereon; or offer, promise or give anything of value
whatsoever not specified in the contract. Nor shall any insured, annuitant, or
policyholder or employee thereof, or prospective insured, annuitant or
policyholder, or employee thereof, knowingly accept or receive, directly or
indirectly, any such prohibited contract, agreement, rebate, advantage,
employment, or other inducement.
    (2)  Nothing in this section shall be construed as prohibiting the payment
of commissions or other compensation to duly licensed agents, solicitors, or
brokers, or as prohibiting any insurer from allowing or returning to its
participating policyholders, members or subscribers, the usual and ordinary
dividends, savings, or unabsorbed premium deposits.
    (3)  Nothing in this section shall be construed as prohibiting a life
insurer, property insurer or casualty insurer, or producers who are marketing
life insurance, property insurance or casualty insurance, from providing to a
policyholder or prospective policyholder of life, property or casualty
insurance, any prizes, goods, wares, merchandise, articles or property of an
aggregate value of fifty dollars ($50.00) or less.
    (4)  Extension of credit for the payment of premium beyond the customary
premium payment period without charging and collecting interest at a
reasonable rate per annum on the amount of credit so extended and for the
duration of such credit is prohibited under this section.