Tex. Ins. Code Section 541.056
Prohibited Rebates and Inducements


(a)

Subject to Section 541.058 (Certain Practices Not Considered Discrimination or Inducement) and except as otherwise expressly provided by law, it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to knowingly permit the making of, offer to make, or make a life insurance contract, life annuity contract, or accident and health insurance contract or an agreement regarding the contract, other than as plainly expressed in the issued contract, or directly or indirectly pay, give, or allow or offer to pay, give, or allow as inducement to enter into a life insurance contract, life annuity contract, or accident and health insurance contract a rebate of premiums payable on the contract, a special favor or advantage in the dividends or other benefits of the contract, or a valuable consideration or inducement not specified in the contract, or give, sell, or purchase or offer to give, sell, or purchase in connection with a life insurance, life annuity, or accident and health insurance contract or as inducement to enter into the contract stocks, bonds, or other securities of an insurer or other corporation, association, or partnership, dividends or profits accrued from the stocks, bonds, or securities, or anything of value not specified in the contract.

(b)

It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to issue or deliver or to permit an agent, officer, or employee to issue or deliver as an inducement to insurance:

(1)

company stock or other capital stock;

(2)

a benefit certificate or share in a corporation;

(3)

securities; or

(4)

a special or advisory board contract or any other contract promising returns or profits.

(c)

Subsection (b) does not prohibit issuing or delivering a participating insurance policy otherwise authorized by law.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Source: Section 541.056 — Prohibited Rebates and Inducements, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­541.­htm#541.­056 (accessed Mar. 23, 2024).

541.001
Purpose
541.002
Definitions
541.003
Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Prohibited
541.004
Venue for Actions Involving Department or Commissioner
541.005
Applicability to Risk Retention or Purchasing Group
541.006
Prohibited Content of Certain Insurance Policies
541.007
Immunity from Prosecution
541.008
Liberal Construction
541.051
Misrepresentation Regarding Policy or Insurer
541.052
False Information and Advertising
541.053
Defamation of Insurer
541.054
Boycott, Coercion, or Intimidation
541.055
False Financial Statement
541.056
Prohibited Rebates and Inducements
541.057
Unfair Discrimination in Life Insurance and Annuity Contracts
541.058
Certain Practices Not Considered Discrimination or Inducement
541.059
Deceptive Name, Word, Symbol, Device, or Slogan
541.060
Unfair Settlement Practices
541.061
Misrepresentation of Insurance Policy
541.082
Advertising and Internet Websites
541.083
Advertisements to Certain Associations
541.084
Advertisements Relating to Medicare Program
541.085
Advertisements Relating to Preferred Provider Benefit Plans
541.086
Advertising Regarding Guaranteed Renewable Coverage
541.101
Examination and Investigation
541.102
Statement of Charges
541.103
Hearing
541.104
Hearing Procedures
541.105
Record of Hearing
541.106
Compliance with Subpoena
541.107
Determination of Violation
541.108
Cease and Desist Order
541.109
Modification or Setting Aside of Order
541.110
Administrative Penalty
541.111
Civil Penalty for Violation of Cease and Desist Order
541.151
Private Action for Damages Authorized
541.152
Damages, Attorney’s Fees, and Other Relief
541.153
Frivolous Action
541.154
Prior Notice of Action
541.155
Abatement
541.156
Settlement Offer
541.157
Contents of Settlement Offer
541.158
Rejection of Settlement Offer
541.159
Limit on Recovery After Settlement Offer
541.160
Effect of Settlement Offer
541.161
Mediation
541.162
Limitations Period
541.201
Injunctive Relief
541.202
Venue for Injunctive Action
541.203
Issuance of Injunction
541.204
Civil Penalty
541.205
Compensation or Restoration
541.206
Civil Penalty for Violation of Injunction
541.207
Remedies Not Exclusive
541.251
Class Action Authorized
541.252
Recovery
541.253
Frivolous Action
541.254
Statute of Limitations Tolled
541.255
Prior Notice
541.256
Prerequisites to Class Action
541.257
Class Actions Maintainable
541.258
Class Actions: Issues and Subclasses Authorized
541.259
Determination Regarding Whether Class Action May Be Maintained
541.260
Effect of Denial of Class Action
541.261
Notice of Class Action
541.262
Procedures in Class Action
541.263
Effect of Settlement Offer
541.264
Defenses
541.265
Limitations Period for Damages
541.266
Disposition
541.267
Contents of Judgment
541.301
Refund of Premiums
541.302
Time to Make Refunds
541.303
Sanction
541.304
Evidentiary Use of Compliance or Attempt to Comply
541.351
Acceptance of Assurance
541.352
Effect of Assurance
541.353
Reopening
541.354
Right to Bring Action Not Affected
541.401
Rulemaking Authority
541.402
Petition
541.403
Denial of Petition
541.404
Hearing on Petition
541.405
Judicial Review of Department Action
541.451
Liability Under Other Law
541.452
Powers in Addition to Other Powers Authorized by Law
541.453
Double Recovery Prohibited
541.454
Penalties and Related Payments by Insurer

Accessed:
Mar. 23, 2024

§ 541.056’s source at texas​.gov