Prohibited inducements and rebates not specified in the contract

What this document is

Md. Code, Insurance s. 27-209 - Prohibited inducements and rebates not specified in the contract is a state statute published by Maryland General Assembly (mgaleg.maryland.gov). It is one of the Maryland documents that insurance license exam questions are written from, including maryland life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Md. Code Ann., Ins. § 27-209(a)(2)-(a)(4) (Prohibited inducements)

  “(2) pay, allow, give, or offer to pay, allow, or give directly or indirectly as an inducement to the insurance or annuity: (i) a rebate of premiums payable on the contract; (ii) a special favor or advantage in the dividends or other benefits under the contract; (iii) paid employment or a contract...”

• Md. Code, Ins. § 27-209 (Prohibited inducements and rebates)

  “pay, allow, give, or offer to pay, allow, or give directly or indirectly as an inducement to the insurance or annuity: (i) a rebate of premiums payable on the contract;”

• Md. Code, Insurance § 27-209(b) (Promotional Items Not Contingent on Sale)

  “(b) A person may not make receipt of any educational materials, promotional materials, or articles of merchandise under subsection (a)(4) of this section contingent on the sale or purchase of insurance.”

• Md. Code, Insurance § 27-209(a) (Prohibited Inducements to Insurance or Annuity)

  “Except as otherwise expressly provided by law, a person, including a health maintenance organization, may not knowingly: (1) allow, make, or offer to make a contract of life insurance or health insurance or an annuity contract or an agreement as to the contract other than as plainly expressed in...”

• Md. Code, Insurance § 27-209(c)(4) (Value-Added Products and Services)

  “An insurer, a nonprofit health service plan, or a health maintenance organization may not increase the premium or deny a claim of a policyholder if the policyholder accepts, rejects, uses, or fails to use a product or service under this subsection.”

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Questions about this source

More Maryland sources

• Md. Code, Insurance s. 10-104 - License required; insurance producerState statute
• Md. Code, Insurance s. 10-126 - Grounds for denial, suspension, or revocation of licenseState statute
• Md. Code, Insurance s. 27-208 - Unfair discrimination between individuals of the same class in life rates, dividends and benefitsState statute
• Md. Code, Insurance s. 27-216 - Rebating and inducements; willful collection of excess premiumState statute
• Md. Code, Insurance s. 27-405 - Fraudulent insurance act: acting without a licence or certificationState statute
• Maryland Insurance Article Title 10 - Insurance Producers and Other Insurance Professionals (103 sections)State statute
• Maryland Insurance Article Title 15 - Health Insurance, first half (Secs. 15-101 through 15-815)State statute
• Maryland Insurance Article Title 15 - Health Insurance, second half (Secs. 15-816 through 15-1704)State statute