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 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.