An insurer or agent may not give rebates, inducements, or other unlisted benefits in connection with life insurance or annuity contracts, except as allowed by this subchapter.
Sec. 1702.102. PROHIBITED REBATES AND INDUCEMENTS. (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. Added by Acts 2025, 89th Leg., R.S., Ch. 581 (H.B. 2221), Sec. 2, eff. September 1, 2025.