2002 Minnesota Statutes

     72A.08 Laws against rebate. 

    Subdivision 1.    Rebate defined and prohibited.  No 
 insurance company or association, however constituted or 
 entitled, including any affiliate of the insurance company or 
 association, doing business in this state, nor any officer, 
 agent, subagent, solicitor, employee, intermediary, or 
 representative thereof, shall make or permit any advantage or 
 distinction in favor of any insured individual, firm, 
 corporation, or association with respect to the amount of 
 premium named in, or to be paid on, any policy of insurance, or 
 shall offer to pay or allow directly or indirectly or by means 
 of any device or artifice, as inducements to insurance, any 
 rebate or premium payable on the policy, or any special favor or 
 advantage in the dividends or other profit to accrue thereon, or 
 any valuable consideration or inducement not specified in the 
 policy contract of insurance, or give, sell, or purchase, offer 
 to give, sell or purchase, as inducement to insure or in 
 connection therewith, any stocks, bonds, or other securities of 
 any insurance company or other corporation, association, 
 partnership, or individual, or any dividends or profits accrued 
 or to accrue thereon, or anything of value, not specified in the 
 policy.  For purposes of this section, "affiliate" has the 
 meaning given in section 60D.15, subdivision 2. 

    Subd. 2.    Insured prohibited from receiving rebates.  
 No person shall receive or accept from any such company or 
 association, including any affiliate of the insurance company or 
 association, or from any of its officers, agents, subagents, 
 solicitors, employees, intermediaries, or representatives, or 
 any other person any such rebate of premium payable on the 
 policy, or any special favor or advantage in the dividends or 
 other financial profits accrued, or to accrue, thereon, or any 
 valuable consideration or inducement not specified in the policy 
 of insurance.  No person shall be excused from testifying, or 
 from producing any books, papers, contracts, agreements, or 
 documents, at the trial of any other person, copartnership, 
 association, or company charged with violation of any provision 
 of this section on the ground that the testimony or evidence may 
 tend to incriminate; but no person shall be prosecuted for any 
 act concerning which the person shall be compelled to so testify 
 or produce evidence, documentary or otherwise, except for 
 perjury committed in so testifying.  

    Subd. 3.    Penalty for rebate.  Any company, 
 association, or individual violating any provisions of this 
 section, whether the violation be in the giving or accepting of 
 anything herein prohibited, shall be punished by a fine of not 
 less than $60 nor more than $200.  In the case of a violation by 
 an affiliate or by an individual on behalf of an affiliate, this 
 subdivision applies to the insurance company or association. 

    Subd. 4.    Exceptions.  The provisions of this section 
 shall not apply to any policy procured by officers, agents, 
 subagents, employees, intermediaries, or representatives wholly 
 and solely upon property of which they are, respectively, the 
 owner at the time of procuring the policy, where the officers, 
 agents, subagents, employees, intermediaries, or representatives 
 are, and have been for more than six months prior to the issuing 
 of the policy, regularly employed by, or connected with, the 
 company or association issuing the policy; and any life 
 insurance company doing business in this state may issue 
 industrial policies of life or endowment insurance, with or 
 without annuities, with special rates of premiums less than the 
 usual rates of premiums for these policies, to members of labor 
 organizations, credit unions, lodges, beneficial societies, or 
 similar organizations, or employees of one employer, who, 
 through their secretary or employer, may take out insurance in 
 an aggregate of not less than 50 members and pay their premiums 
 through the secretary or employer.  

    HIST: 1967 c 395 art 12 s 8; 1986 c 444; 1998 c 375 s 1-3; 
 2002 c 330 s 30,34; 2002 c 331 s 18; 2002 c 342 s 11; 2002 c 357 
 s 2