Texas Insurance Code 1806.153 – Unjust Discrimination; Rebates
(a) An insurer or an insurer’s officer, director, agent, or other representative may not grant or contract for a special favor or advantage in:
(1) dividends or other profits to accrue on an insurance policy;
(2) commissions in the dividends or other profits to accrue on an insurance policy;
(3) commissions or division of commission; or
(4) a position, valuable consideration, or inducement not specified in an insurance policy.
(b) An insurer may not directly or indirectly give, sell, or purchase or offer to give, sell, or purchase as an inducement to insurance or in connection with insurance:
(1) stocks, bonds, or other securities of an insurer or other corporation, partnership, or individual;
(2) dividends or profits that have accrued or will accrue on stocks, bonds, or other securities of an insurer or other corporation, partnership, or individual; or
(3) anything of value not specified in the policy.
Terms Used In Texas Insurance Code 1806.153
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(c) An insurer or an insurer’s officer, director, agent, or other representative that violates this section has engaged in unjust discrimination.