2005 Idaho Code - 41-1315 — EXCEPTIONS TO DISCRIMINATION OR REBATE PROVISION -- LIFE OR DISABILITY POLICIES, AND ANNUITY CONTRACTS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 13
                          TRADE PRACTICES AND FRAUDS
    41-1315.  EXCEPTIONS TO DISCRIMINATION OR REBATE PROVISION -- LIFE OR
DISABILITY POLICIES, AND ANNUITY CONTRACTS. Nothing in sections 41-1313 and
41-1314[, Idaho Code,] shall be construed as including within the definition
of discrimination or rebates or illegal inducements any of the following
practices:
    (1)  In the case of any contract of life insurance or life annuity, paying
bonuses to policy holders or otherwise abating their premiums in whole or in
part out of surplus accumulated from nonparticipating insurance, provided that
any such bonuses or abatement of premiums shall be fair and equitable to
policy holders.
    (2)  In the case of life insurance policies issued on the debit plan,
making allowance to policy holders who have continuously for a specified
period made premium payments directly to an office of the insurer in an amount
which fairly represents the saving in collection expense.
    (3)  Readjustment of the rate of premium for a group insurance policy
based on the loss or expense experience thereunder, at the end of the first or
any subsequent policy year of insurance thereunder, which may be made
retroactive only for such policy year.
    (4)  Issuing life or disability insurance policies on a salary savings,
bank draft, preauthorized check or payroll deduction plan or other similar
plan at a reduced rate reasonably related to the savings made by use of such
plan.
    (5)  Issuance of life or disability insurance policies or annuity
contracts at rates less than the usual rates of premiums for such policies or
contracts, or modification of premium or rate based on amount of insurance;
but any such issuance or modification shall not result in reduction in premium
or rate in excess of savings in administration and issuance expenses
reasonably attributable to such policies or contracts.